Legislature(2023 - 2024)DAVIS 106

03/15/2023 06:00 PM House WAYS & MEANS

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Audio Topic
06:03:22 PM Start
06:05:14 PM Presentation(s): Education and Alaska's Economy
08:21:02 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Joint Meeting with House Education Committee
+ Presentation: Education and Alaska's Economy by TELECONFERENCED
Alaska Policy Forum
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
           HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS                                                                          
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                         March 15, 2023                                                                                         
                           6:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS                                                                                       
                                                                                                                                
 Representative Ben Carpenter, Chair                                                                                            
 Representative Jamie Allard                                                                                                    
 Representative Tom McKay                                                                                                       
 Representative Kevin McCabe                                                                                                    
 Representative Cathy Tilton                                                                                                    
 Representative Andrew Gray                                                                                                     
 Representative Cliff Groh                                                                                                      
                                                                                                                                
HOUSE EDUCATION STANDING COMMITTEE                                                                                              
                                                                                                                                
 Representative Jamie Allard, Co-Chair                                                                                          
 Representative Justin Ruffridge, Co-Chair                                                                                      
 Representative Mike Prax                                                                                                       
 Representative Tom McKay                                                                                                       
 Representative Rebecca Himschoot                                                                                               
 Representative Andi Story                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS                                                                                       
                                                                                                                                
 All members present                                                                                                            
                                                                                                                                
HOUSE EDUCATION STANDING COMMITTEE                                                                                              
                                                                                                                                
 Representative CJ McCormick                                                                                                    
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S): EDUCATION AND ALASKA'S ECONOMY                                                                                 
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BOB GRIFFIN, Senior Education Research Fellow                                                                                   
Alaska Policy Forum                                                                                                             
Anchorage, Alaska                                                                                                               
POSITION   STATEMENT:     Co-presented  the   PowerPoint,  titled                                                             
"Alaska's Education Landscape."                                                                                                 
                                                                                                                                
SARAH MONTALBANO, Education Policy Analyst                                                                                      
Alaska Policy Forum                                                                                                             
Anchorage, Alaska                                                                                                               
POSITION   STATEMENT:     Co-presented  the   PowerPoint,  titled                                                             
"Alaska's Education Landscape."                                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
6:03:22 PM                                                                                                                    
                                                                                                                                
CHAIR  BEN  CARPENTER  called  the joint  meeting  of  the  House                                                             
Special  Committee on  Ways  and Means  and  the House  Education                                                               
Standing Committee to order at 6:03  p.m.  Present at the call to                                                               
order were: from  the House Special Committee on  Ways and Means,                                                               
Representative Carpenter,  McCabe, Tilton,  Gray, and  Groh; from                                                               
the  House Education  Standing  Committee, Representatives  Prax,                                                               
Himshoot,   and   Story;   and  representing   both   committees,                                                               
Representatives  Allard  and  McKay.   Representative  Ruffridge,                                                               
from  the  house Education  Standing  Committee,  arrived as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
^presentation(s): Education and Alaska's Economy                                                                                
        PRESENTATION(S): Education and Alaska's Economy                                                                     
                                                                                                                              
6:05:14 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced  that the only order  of business would                                                               
be a presentation on education and Alaska's economy.                                                                            
                                                                                                                                
6:05:54 PM                                                                                                                    
                                                                                                                                
BOB  GRIFFIN, Senior  Education  Research  Fellow, Alaska  Policy                                                               
Forum  (APF),  co-presented   the  PowerPoint,  titled  "Alaska's                                                               
Education  Landscape"  [hard  copy   included  in  the  committee                                                               
packet].   He  provided  an overview  of  the presentation  which                                                               
covered  education  comparisons   between  Alaska,  Florida,  and                                                               
Mississippi.   He stated that  Florida and Mississippi  were used                                                               
because both states had passed  legislation similar to the Alaska                                                               
Reads Act.   He continued that the presentation  would also cover                                                               
a  review  of  Alaska's  K-12  funding;  recommendations  to  the                                                               
state's  funding   formula;  data  on  the   state's  educational                                                               
outcomes;  educational   choice  and  its  fiscal   benefit;  and                                                               
scenarios related  to the Alaska Correspondence  School Allotment                                                               
(CSAP).                                                                                                                         
                                                                                                                                
6:07:38 PM                                                                                                                    
                                                                                                                                
MR.  GRIFFIN  moved to  slide  3  to  share trends  in  education                                                               
results using  data from the  National Assessment  of Educational                                                               
Progress (NAEP).   He reported that there were  better results in                                                               
2022 than in  2019.  He said that APF  tracks results by economic                                                               
strata.    He  expressed  that   the  forum  believes  that  "the                                                               
brightness of  a child's mind  is not determined by  skin color."                                                               
He expressed  concern that Alaska's  eighth grade  reading scores                                                               
were ranked fifty-first in the nation.                                                                                          
                                                                                                                                
6:08:42 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN moved  to slide 4 which shows a  chart of NAEP fourth                                                               
grade reading  test scores from  low-income students  from across                                                               
the country.   The chart covers 2003  to 2022.  He  said that APF                                                               
focuses  on   low-income  students  with  the   goal  of  closing                                                               
achievement gaps.   He further  pointed to  Mississippi's results                                                               
and noted it was ranked second.   He stated that when Mississippi                                                               
had enacted legislation similar to  the Alaska Reads Act, as well                                                               
as legislation  around school choice, the  state evolved rapidly.                                                               
He added that this is also the  case for Florida.  He shared that                                                               
Oregon, ranked fourth  in the nation in 2022,  has classified all                                                               
its students  for free and  reduced lunch.   He pointed  out that                                                               
the free  and reduced lunch  students in Mississippi  and Florida                                                               
have outperformed all students in Oregon.                                                                                       
                                                                                                                                
6:10:45 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN  moved to slide 5  and addressed the NAEP  scores for                                                               
Florida and Mississippi.  Both  states have had significant gains                                                               
in eighth grade  math NAEP scores since 2003.   Furthermore, 2020                                                               
advanced placement (AP) course results  in Florida showed that 34                                                               
percent  of high  school graduates  passed at  least one  AP test                                                               
with a  score of 3 or  higher, while in Anchorage,  14 percent of                                                               
students passed one AP test with a score of 3 or higher.                                                                        
                                                                                                                                
6:11:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY  questioned whether APF has  tracked Florida                                                               
and Mississippi's investment into  early literacy.  She expressed                                                               
the  understanding that  these states  invest significantly  into                                                               
early  learning for  four-year-old students.   She  expressed the                                                               
opinion that this would be a big factor in educational growth.                                                                  
                                                                                                                                
MR.  GRIFFIN  answered that  both  Florida  and Mississippi  have                                                               
invested  in and  funded  early literacy  for a  long  time.   He                                                               
stated  that  Florida  had  added  a  reading  program  prior  to                                                               
implementing Pre-K, and it was the first in the nation in low-                                                                  
income fourth  grade reading.  He  added that it is  difficult to                                                               
establish  the  impact of  Pre-K;  moreover,  Pre-K was  not  the                                                               
solution which moved Florida to  number one in low-income fourth-                                                               
grade reading.                                                                                                                  
                                                                                                                                
6:13:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT, concerning  the low-income fourth grade                                                               
reading data, pointed out that  the data for both Mississippi and                                                               
Florida include  a retention section  for students who  were held                                                               
back a grade.  She questioned  the two states retention rates and                                                               
noted  retention is  not a  part of  the Alaska  Reads Act.   She                                                               
stated,  "When we  compare outcomes  - apples  to their  apples -                                                               
some  of their  apples are  a  year older  and have  a year  more                                                               
experience when they took the fourth grade NAEP."                                                                               
                                                                                                                                
MR. GRIFFIN responded  that he does not have  this data; however,                                                               
he relayed  that the retention  rate in Florida has  been stable,                                                               
while  it has  jumped in  Mississippi.   He  added the  long-term                                                               
effects  have  been  overall positive,  acknowledging  there  are                                                               
varying schools of thought regarding  student retention.  He gave                                                               
the example  that some  students may  be damaged  from retention,                                                               
but conversely, low  literacy may also damage  the student's self                                                               
esteem at a  later age.  In response to  a follow-up question, he                                                               
suggested  that the  difference in  the AP  success rate  between                                                               
Alaska  and Florida  stems  from  Florida's financial  incentives                                                               
provided for AP scores of 3  or higher.  He expressed the opinion                                                               
that  incentives matter,  and if  the funding  is tied  to better                                                               
outcomes, then students would achieve better outcomes.                                                                          
                                                                                                                                
6:16:02 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN  moved to  slide 6 to  present Alaska's  overall 2022                                                               
NAEP test  results compared  to Florida's.   He pointed  out that                                                               
Florida  is doing  well  in literacy  but  struggles with  eighth                                                               
grade math students who are not  enrolled in the free and reduced                                                               
lunch program.   He said in 2003, Alaska was  six points ahead of                                                               
Florida in  eighth grade math  students who were not  enrolled in                                                               
the  free and  reduced  lunch  program, but  in  2023 Alaska  was                                                               
behind Florida.                                                                                                                 
                                                                                                                                
6:17:09 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN moved to slide 7  to lay out the programs Mississippi                                                               
and  Florida have  created related  to  school choice.   He  said                                                               
these  states  serve  193,000  students  with  7  programs.    He                                                               
highlighted Florida's Family  Empowerment Scholarship program and                                                               
explained that 90  percent of funding to this program  is used to                                                               
help special needs children attend private schools.                                                                             
                                                                                                                                
6:18:04 PM                                                                                                                    
                                                                                                                                
MR.  GRIFFIN  moved  to  slide   8.    He  outlined  Florida  and                                                               
Mississippi students  who had the  largest gains.   This includes                                                               
low-income   students,    minority   students,    students   with                                                               
disabilities, and students with  limited English proficiency.  He                                                               
pointed out the  Miami Dade Public Schools (MDPS)  in Florida has                                                               
59 percent of  students living in homes where English  is not the                                                               
only language.   He expressed the understanding  that, because of                                                               
the outcome  incentives provided in  Florida, MDPS had  51,910 of                                                               
juniors and  seniors pass AP tests  with a score of  3 or higher.                                                               
He further explained  that fourth grade NAEP  reading scores from                                                               
MDPS  were  6  points  higher  than  upper  middle-income  fourth                                                               
graders in Alaska.                                                                                                              
                                                                                                                                
6:19:24 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN, in  response to a committee  question, answered that                                                               
Florida and Mississippi  were chosen because of  the good ranking                                                               
in low-income  fourth grade reading  scores.  He said  that early                                                               
literacy  for  low-income students  is  one  of the  fundamentals                                                               
needed to  close achievement gaps  between different groups.   He                                                               
said that,  because of  these programs'  success rates,  they are                                                               
important programs to emulate.                                                                                                  
                                                                                                                                
6:20:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE  expressed  doubt that  the  committee  is                                                               
meeting  today  to  "poke holes"  in  Florida  and  Mississippi's                                                               
education programs.   He observed  that Alaska's students  are in                                                               
the  bottom  5 percent  of  all  the  NAEP  data presented.    He                                                               
suggested  that the  two  states were  picked  because they  have                                                               
moved up  in NAEP  rankings.  He  said that even  if one  were to                                                               
pick states within  the top 30, Alaska would still  be failing by                                                               
comparison despite the amount of state spending.                                                                                
                                                                                                                                
6:21:26 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN, responding to a  committee question, said that these                                                               
states were chosen because they  had also passed legislation like                                                               
the  Alaska Reads  Act.   He said  the states  also have  various                                                               
other factors, like strong school choice programs.                                                                              
                                                                                                                                
6:22:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT  questioned  whether a  correlation  or                                                               
causation was drawn  regarding the 32,602 students  who passed AP                                                               
tests with a score of 3 or higher.                                                                                              
                                                                                                                                
MR. GRIFFIN  answered that neither  correlation nor  causation is                                                               
being assumed.   He added that  the figure may be  an interesting                                                               
correlation,  but  he would  not  assign  causation  to it.    In                                                               
response to a follow-up question, he  stated there has not been a                                                               
study conducted on this figure; it  is just data without a causal                                                               
link.                                                                                                                           
                                                                                                                                
6:23:17 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN stated  that slide 10 shows a bar  chart of 2022 NAEP                                                               
fourth  grade reading  scores  ranked by  state  and broken  down                                                               
between low-income  and upper middle-income  students.   He moved                                                               
to  slide 11,  which shows  the 2021  K-12 spending  per student,                                                               
adjusted for  price parity.  He  pointed out that the  middle bar                                                               
chart shows 2021 regional price  parities between states, and the                                                               
red arrow  on the chart  shows Alaska was  at 104 percent  of the                                                               
national average.   He noted that  Florida is at 101  percent and                                                               
Mississippi is  at 86 percent.   He said  the chart on  the right                                                               
corrects for the  regional price parities, which  shows Alaska is                                                               
in the  upper one third of  the rankings.  He  noted, despite all                                                               
the education  expenditures, Florida  and Mississippi  are ranked                                                               
near the bottom in spending.                                                                                                    
                                                                                                                                
6:25:24 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN, in response to  a committee question, clarified that                                                               
the middle  bar chart  reflects the  adjustment for  price parity                                                               
based on  a chart from  the U.S. Bureau Economic  Analysis, which                                                               
determined  that  Alaska spent  on  average  4.5 percent  and  is                                                               
ranked eighth  in cost of  living.  He  said the data  within the                                                               
chart on  the right of the  slide derives data from  the chart in                                                               
the center.                                                                                                                     
                                                                                                                                
6:27:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY,  drawing attention  to  the  chart in  the                                                               
center of  the slide,  asked whether the  data has  been adjusted                                                               
for  geographic cost  factors.   She said  that the  Institute of                                                               
Social and  Economic Research University of  Alaska Anchorage has                                                               
done a  study on  these factors,  and it shows  that Alaska  is 7                                                               
percent under the national average.                                                                                             
                                                                                                                                
MR. GRIFFIN  stated that  the center chart  does not  account for                                                               
geographic  cost  factors,  and  it  does  not  account  for  the                                                               
personal tax burden for residents in Alaska.                                                                                    
                                                                                                                                
6:27:53 PM                                                                                                                    
                                                                                                                                
MR.  GRIFFIN, in  response  to  Representative Allard,  confirmed                                                               
that the average cost per student  in Alaska is $20,484, and this                                                               
is published  by the National Education  Association (NEA), whose                                                               
statisticians make apples-to-apples  comparisons for its members.                                                               
He added  that NEA  has no  vested interest  in making  one state                                                               
look better  or worse.  He  explained that the $20,484  figure is                                                               
for 2021  and based on  the average  daily attendance (ADA).   He                                                               
said it  is a higher  number than  other states and  stressed its                                                               
importance, as  it accounts for  chronic absenteeism, as  well as                                                               
other  variables  which  affect  the  number  of  students  being                                                               
educated.   He expressed  the opinion that  cost would  be driven                                                               
higher by chronic absenteeism.                                                                                                  
                                                                                                                                
REPRESENTATIVE ALLARD  commented on  the amount the  state spends                                                               
on  school funding.   She  noted that  the funding  for the  base                                                               
student allocation (BSA) is not  the only source of funds schools                                                               
receive.    She questioned  the  factors  which account  for  the                                                               
$20,484 figure.                                                                                                                 
                                                                                                                                
MR. GRIFFIN responded that NEA  tracks total costs and provides a                                                               
satisfactory  apples-to-apples comparison.    He  added that  NEA                                                               
publishes this data.                                                                                                            
                                                                                                                                
6:30:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY pointed  out on  slide 10  that Delaware  is                                                               
ranked  higher than  Alaska in  low-income  fourth grade  reading                                                               
scores, while Delaware ranked lower  than Alaska in upper middle-                                                               
income fourth grade reading results.   He commented that Delaware                                                               
underwent  teaching   methodology  reform  in  reading   and  had                                                               
announced  in 2019  greater efforts  to  address early  childhood                                                               
education.  Using  the spending data on slide 11,  he pointed out                                                               
that  Delaware  spends slightly  less  than  Alaska, as  Delaware                                                               
spends  $18,503  per student  compared  to  Alaska's $20,484  per                                                               
student.  He observed that  Delaware has a small rural population                                                               
and  not many  factors  to drive  up costs.    He suggested  that                                                               
Delaware would be a good state to review.                                                                                       
                                                                                                                                
MR.  GRIFFIN   answered  that  he   will  investigate   making  a                                                               
comparison using Delaware.                                                                                                      
                                                                                                                                
6:31:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT expressed  the understanding  that when                                                               
districts are understaffed  and not able to  provide paperwork on                                                               
free  and  reduced lunch  programs,  the  school would  not  stop                                                               
feeding the students; it just does  not have the paperwork on the                                                               
low-income  students.   She questioned  whether  data shows  that                                                               
students on slide 10 are considered upper-middle income.                                                                        
                                                                                                                                
MR. GRIFFIN expressed the assumption  that all states are equally                                                               
motivated  to ensure  students who  qualify for  free or  reduced                                                               
cost lunches  can apply for the  program.  He said  that while it                                                               
may  not  be   a  valid  assumption,  the   differences  are  not                                                               
dramatically different from state to state.                                                                                     
                                                                                                                                
6:33:00 PM                                                                                                                    
                                                                                                                                
MR.  GRIFFIN  moved  to  slide 12  and  addressed  K-12  spending                                                               
increases.  The  chart spans from 2004 to 2022  and uses ADA data                                                               
originating  from NEA's  report  on ranking  and  estimates.   He                                                               
pointed out  that Alaska is  ranked around the  national average,                                                               
and it  has moved down  in ranking because  of flat funding.   He                                                               
presented a  chart of free  and reduced  lunch rates by  state on                                                               
slide 13, with  Florida and Mississippi at the higher  end of the                                                               
chart.  He moved to slide  14 and addressed rural Alaska's effect                                                               
on  school performance.   He  said the  assumption has  been that                                                               
Alaska's poor  performance is because  of rural  Alaska; however,                                                               
he  said   that  some   rural  schools   in  the   state  achieve                                                               
exceptionally.  Conversely, he pointed  out that the five largest                                                               
schools  in the  state are  all  ranked lower  in performance  in                                                               
English language arts  proficiency, and this is  according to the                                                               
most  recent  Alaska  System  of  Economic  Readiness  (AK  STAR)                                                               
results.    Answering  a  question   from  a  previous  committee                                                               
meeting,  he said  that there  is a  correlation between  a lower                                                               
poverty rate city and higher  performance.  He commented that the                                                               
state's  five  largest  schools  are  slightly  above  the  state                                                               
average.   He  added that  Alaska has  the overall  worst English                                                               
language arts proficiency in the nation.                                                                                        
                                                                                                                                
6:35:12 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN  moved to slide  15 which shows the  annual estimates                                                               
of  people of  color,  by state,  based  on resident  population.                                                               
This data originated  from the U.S. Census Bureau,  and Alaska is                                                               
ranked  fifteenth  with  38.1  percent   people  of  color.    He                                                               
presented a graph  on slide 16 which shows Alaska  has a majority                                                               
of minority students in its population.   He said a similar shift                                                               
has  been happening  across the  country, and  future generations                                                               
will  no longer  identify as  a single  race.   He said  that the                                                               
largest growing ethnicity in the  U.S. are people who identify as                                                               
two or more races.                                                                                                              
                                                                                                                                
6:36:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE referred  to  slide  12 regarding  K-12                                                               
spending  increases.   He asked  why the  year range  is 2014  to                                                               
2022.     He  expressed  the   understanding  that   the  current                                                               
foundation  formula was  created several  years before  the dates                                                               
selected.                                                                                                                       
                                                                                                                                
MR. GRIFFIN explained  that the dates were  selected because they                                                               
are a baseline  which APF uses year after year.   The figures are                                                               
cross referenced to NAEP test  scores, and he explained that 2003                                                               
was the first year Alaska fully participated in NAEP testing.                                                                   
                                                                                                                                
6:37:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALLARD  referred to Alaska's students  having high                                                               
absenteeism and  asked whether  the length of  the school  day in                                                               
the   state   had  been   investigated.      She  expressed   the                                                               
understanding  that Alaska  has the  shortest school  day in  the                                                               
country.                                                                                                                        
                                                                                                                                
MR.  GRIFFIN  concurred  that  Alaska schools  have  one  of  the                                                               
shortest total hours in a school  year.  In response to a follow-                                                               
up question,  he expressed  the opinion that  if students  are in                                                               
school longer, they would have more opportunity to achieve.                                                                     
                                                                                                                                
6:39:02 PM                                                                                                                    
                                                                                                                                
MR.  GRIFFIN,  in  response to  a  question  from  Representative                                                               
Story, pointed  out that  poverty rates  are different  than free                                                               
and reduced  lunch rates.  He  asked if she is  referring to free                                                               
and reduced lunch rates in Juneau.                                                                                              
                                                                                                                                
REPRESENTATIVE STORY  expressed the  understanding that  free and                                                               
reduced  lunch  is  a   significant  factor  towards  determining                                                               
poverty rates.                                                                                                                  
                                                                                                                                
MR. GRIFFIN  explained that  free and  reduced lunch  rates would                                                               
reflect  the  poverty  rate,  and for  Alaska  an  additional  25                                                               
percent would  be factored  in.  For  example, in  Anchorage, the                                                               
free  and reduced  lunch rate  is 50  percent, while  the poverty                                                               
rate is 9.1 percent.                                                                                                            
                                                                                                                                
6:40:52 PM                                                                                                                    
                                                                                                                                
CHAIR  CARPENTER expressed  the  understanding  that the  poverty                                                               
rates  presented are  not the  free  and reduced  rates based  on                                                               
community census.                                                                                                               
                                                                                                                                
MR. GRIFFIN answered  that the presentation does  not contain the                                                               
chart which shows free and reduced lunch rates.                                                                                 
                                                                                                                                
6:41:09 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN, in response to  Representative Groh, stated that the                                                               
figures on  slide 12 are  presented in nominal  dollars; however,                                                               
the  rankings would  not change  even if  they were  adjusted for                                                               
inflation.                                                                                                                      
                                                                                                                                
6:42:02 PM                                                                                                                    
                                                                                                                                
MR.  GRIFFIN  returned  to  the  presentation  on  slide  17  and                                                               
addressed student diversity and poverty  in Anchorage.  He stated                                                               
that the city  is ranked the seventy-first of  large U.S. cities,                                                               
but one  hundred and forty-seventh  in overall diversity  and one                                                               
hundred and eighty-second in language  diversity.  Of the largest                                                               
cities, Anchorage is  ranked ninth on the list  of lowest poverty                                                               
ratings, while  Miami is ranked  sixteenth.  The data  is sourced                                                               
from the  U.S. Census  Bureau and  a Wallethub  2022 survey.   He                                                               
pointed out a pie chart on  slide 18 showing a 2010 comparison of                                                               
the entropy  index in  Anchorage with  the rest of  the U.S.   He                                                               
said a study published in 2014  found that Anchorage had the most                                                               
diverse school districts in the  country, and this was determined                                                               
by using the entropy index data.   He explained that the chart on                                                               
the left  of the  slide is  sourced from  the study,  titled "The                                                               
Anchorage  Mosaic:  Racial  and  Ethnic Diversity  in  the  Urban                                                               
North."  He  compared the small Native populations  in the entire                                                               
U.S. with Alaska's larger Native population.                                                                                    
                                                                                                                                
6:44:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ALLARD  questioned  whether the  presentation  is                                                               
conveying that Alaska is not the most diverse in the country.                                                                   
                                                                                                                                
MR. GRIFFIN clarified that this  would be a matter of perspective                                                               
and technique  for defining poverty.   He said the  technique the                                                               
author had  used established that  out of 131,000  schools across                                                               
the  country, 27  of  the 30  most diverse  schools  were in  his                                                               
hometown.                                                                                                                       
                                                                                                                                
6:45:12 PM                                                                                                                    
                                                                                                                                
MR.  GRIFFIN, in  response  to  Representative Ruffridge,  stated                                                               
that  "the take  home"  of  the presentation  is  that there  are                                                               
examples  of  programs worthy  of  emulating,  which is  why  APF                                                               
compared  Alaska  with  Florida  and  Mississippi,  and  why  the                                                               
challenges  of K-12  expenditures are  addressed, along  with the                                                               
relative  poverty  of other  states  compared  with Alaska.    He                                                               
remarked  that while  Alaska's challenges  are "less"  than other                                                               
places, the state's  educational outcomes are "not  where we want                                                               
them  to   be."    In   response  to  a  follow-up   request  for                                                               
clarification, he  said that while Alaska  has unique challenges,                                                               
in  the  categories outlined  in  the  presentation, the  state's                                                               
challenges are similar,  equal, or "quite a bit  less" than those                                                               
in Florida  and Mississippi.   He  further clarified  that Alaska                                                               
students are  less diverse,  "slightly less  poor," and  there is                                                               
price parity in K-12 spending.   He said spending per student and                                                               
free  and  reduced  lunch  rates   are  both  linked  to  student                                                               
outcomes.  He concluded that,  as for Alaska's diversity, this is                                                               
a  topic  which has  been  used  to rationalize  "dismal  student                                                               
outcomes."                                                                                                                      
                                                                                                                                
6:50:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALLARD  expressed the opinion that  the comparison                                                               
between  Alaska,  Florida,  and  Mississippi is  relevant.    She                                                               
offered the  understanding that "there's  no excuse,"  and Alaska                                                               
should  be  higher in  the  education  ranking.   She  asked  Mr.                                                               
Griffin to share his involvement with the Alaska Reads Act.                                                                     
                                                                                                                                
MR.  GRIFFIN  answered  that  he  advocated  and  introduced  the                                                               
legislation in  2015 and again in  2022, the year it  passed.  He                                                               
said the  Act was based  on other  states which saw  success with                                                               
the same legislation.                                                                                                           
                                                                                                                                
6:51:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY  reverted  to  slide  12.    He  shared  his                                                               
understanding that over the last 15  years Alaska has had less of                                                               
an  increase  in   spending  than  the  national   average.    In                                                               
addressing poverty  comparisons, he  stated, "I just  would think                                                               
there  are  more people  using  honey  buckets and  outhouses  in                                                               
Alaska than in  Florida and Mississippi."  He  suggested that the                                                               
ways of measuring poverty may be different in Alaska.                                                                           
                                                                                                                                
MR. GRIFFIN  responded that  he can only  speak to  the available                                                               
statistics.                                                                                                                     
                                                                                                                                
6:53:06 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN,  in response to  committee questions,  answered that                                                               
Mississippi and Florida funded their  versions of the legislation                                                               
through a process of determining  which elements of spending were                                                               
the most important.  He  answered that funding had been allocated                                                               
to  implement the  enacted  laws.   He  offered  to research  the                                                               
investments in Florida and the rates of teacher retention there.                                                                
                                                                                                                                
6:54:41 PM                                                                                                                    
                                                                                                                                
SARAH MONTALBANO, Education Policy  Analyst, Alaska Policy Forum,                                                               
co-presented   the   PowerPoint,   titled   "Alaska's   Education                                                               
Landscape."  She  pointed to slide 19 and  addressed the spending                                                               
on  education in  Alaska.   She said  that per-pupil  spending in                                                               
Alaska was nominally  $18,313 in 2020, but estimates  range up to                                                               
$21,000  when  considering  averages across  districts.    Alaska                                                               
spent  almost  50  percent  more than  the  national  average  of                                                               
$13,494.   She said that  some figures may be  misleading because                                                               
per-pupil spending  varies "wildly"  between districts,  with the                                                               
highest being  the Aleutian Region  School District,  which spent                                                               
$104,556 per pupil  in the 2018 to 2019 school  year.  The lowest                                                               
was  the Galena  City  School District,  which  spent $7,302  per                                                               
pupil in the 2018 to 2019  school year.  For urban reference, the                                                               
Anchorage School District spent $16,525  per pupil in the 2018 to                                                               
2019  school year.   She  reported that,  between 2002  and 2020,                                                               
Alaska's total  education expenditures rose 32  percent per pupil                                                               
after adjusting for inflation.                                                                                                  
                                                                                                                                
6:56:45 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO moved to slide 19  and discussed data for the cost                                                               
of living in the  state.  She said that a  study by the Education                                                               
Law  Center found  Alaska's combined  state  and local  revenues,                                                               
after adjusting  for regional cost  of living  variations, funded                                                               
more  than $2,000  per  pupil,  or $17,544,  which  is above  the                                                               
national  average of  $15,446 in  the 2019  to 2020  school year.                                                               
She  pointed to  the chart  from the  study on  the right  of the                                                               
slide  showing that  Alaska  is  one of  the  few  states in  the                                                               
ranking  which  receives  A  and  B  grades  exclusively  in  the                                                               
different categories.   She  said that Alaska  received an  A for                                                               
the  distribution of  funding going  to  high poverty  districts.                                                               
She  explained  that  the  red  line on  the  chart  depicts  the                                                               
increases  in  funding.    She  pointed  out  that  many  of  the                                                               
districts fall above the red  line, while the districts below the                                                               
line have  a large  correspondence school  presence, such  as the                                                               
Galena  School District  and  the Nenana  School  District.   She                                                               
reported that  there were 57 percent  more education expenditures                                                               
in high poverty districts in  2020 than in low poverty districts;                                                               
furthermore,  low poverty  districts  were  funded slightly  less                                                               
than the national average.   She explained that Alaska is putting                                                               
proportionally  more of  its gross  domestic  product (GDP)  into                                                               
education  than the  national  average by  4.42  percent, as  the                                                               
national  average  is 3.5  percent.    She  said GDP  declined  8                                                               
percent  between 2008  and 2020,  but K-12  funding increased  18                                                               
percent.                                                                                                                        
                                                                                                                                
6:59:15 PM                                                                                                                    
                                                                                                                                
MS.  MONTALBANO moved  to  slide 21  to show  a  scatter plot  on                                                               
spending  in  school  districts.     With  the  lowest  per-pupil                                                               
spending at  $5,000 and  the highest at  $40,000, she  noted that                                                               
some schools  fall outside of  the presented plot.   The vertical                                                               
axis  of  the  graph  represents   the  percentage  of  students'                                                               
proficiency from the AK STAR exam,  ranging from 10 to 90 percent                                                               
in math and  reading scores, with the average  statewide score at                                                               
39  percent.   She explained  that the  circles represent  public                                                               
schools, and  the plus signs  represent charter schools,  and the                                                               
size  of the  circle denotes  enrollment size  in the  districts.                                                               
Furthermore,  green  denotes the  district  has  a lower  poverty                                                               
level, and  orange and red denotes  a higher poverty level.   She                                                               
pointed out  that the Skagway  School District has done  the best                                                               
on state standardized  tests, with high spending  compared to the                                                               
other schools.   In another example, she pointed  to five charter                                                               
schools in  the upper  left section  of the  plot that  show they                                                               
have low spending  and high outcomes.  She pointed  to the circle                                                               
drawn on  the left  of the  plot which  represents correspondence                                                               
schools, with these having a  higher student proficiency by 10 to                                                               
20  percent.     She  deduced  that  higher   spending  does  not                                                               
necessarily mean better outcomes.                                                                                               
                                                                                                                                
7:03:05 PM                                                                                                                    
                                                                                                                                
MS.   MONTALBANO,  in   response  to   Representative  Himschoot,                                                               
explained that  the source of  the data is  Georgetown Edunonmics                                                               
Lab, and the lab was using data  from the AK STAR assessment.  In                                                               
response   to   a   follow-up  question,   she   confirmed   that                                                               
correspondence schools  have a 15  percent participation  rate in                                                               
statewide testing.                                                                                                              
                                                                                                                                
7:04:53 PM                                                                                                                    
                                                                                                                                
MS.  MONTALBANO, in  response to  Chair Carpenter,  explained the                                                               
color gradients  of green, yellow,  and red on the  scatter plot.                                                               
The  greener of  the  symbols  denotes the  lowest  poverty of  0                                                               
percent, while  the redder of  the symbols denotes a  100 percent                                                               
poverty  rate.   In  response  to  a follow-up  remark  regarding                                                               
economically  disadvantaged families,  she noted  the chart  also                                                               
shows high spending and low  outcomes; therefore, the chart shows                                                               
a trend but does not prove a rule.                                                                                              
                                                                                                                                
7:07:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY asked  about the  previous slide  regarding                                                               
cost  of living.   She  referred to  the comment  that Alaska  is                                                               
putting  proportionally  more  of  GDP into  education  than  the                                                               
national average.   She commented  that the state should  not use                                                               
this as  a metric because the  price of oil sets  the state's GDP                                                               
based on  a specific year.   As an  example, using 2016  to 2021,                                                               
the high  cost of oil in  2021 grew the  GDP by 27 percent.   She                                                               
said that  while the education  investment from 2008 to  2020 may                                                               
have  increased  4.42  percent,  the  percentage  would  be  much                                                               
different if a different year range  had been used.  She asked if                                                               
the Education Law Center chose the years on the slide.                                                                          
                                                                                                                                
MS. MONTALBANO  answered that the  4.42 percent is from  the 2019                                                               
to 2020 school year, and she said she will seek to verify this.                                                                 
                                                                                                                                
REPRESENTATIVE STORY cautioned using this metric.                                                                               
                                                                                                                                
7:09:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ALLARD   questioned   whether   APF   considered                                                               
analyzing  the  practices  of  Alaska's   charter  schools.    In                                                               
example, some charter schools have  uniform dress codes, a longer                                                               
school day, different academics, and lottery enrollment.                                                                        
                                                                                                                                
MS. MONTALBANO answered that it  is hard to disaggregate specific                                                               
charter school  practices and  define a  causality with  the high                                                               
outcomes.  She  said that the main benefit of  charter schools is                                                               
they have different practices than public schools.                                                                              
                                                                                                                                
7:10:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE  referred   to  Representative  Himshoot's                                                               
comment  regarding a  15 percent  testing participation  rate for                                                               
correspondence schools.   He  asked whether  it has  been assumed                                                               
that the 15  percent of students who did not  take the state test                                                               
were  the lowest  performing  students.   He  suggested that  the                                                               
cross section would be negligible.                                                                                              
                                                                                                                                
MS.  MONTALBANO  explained  that correspondence  school  students                                                               
tend to  optout of AK STAR  testing at a higher  rate than public                                                               
school students.  She suggested  that the data could indicate the                                                               
state  has  an unrepresentative  sample  size,  because the  data                                                               
presents that  the best  students are the  ones taking  the test.                                                               
She  said that  it is  also possible  the data  is a  sampling of                                                               
students whose parents do not  mind the test; therefore, it would                                                               
not  be linked  to  the brightest  of  the correspondence  school                                                               
students.   She  noted that  there is  a low  sample size  of the                                                               
correspondence school student population.                                                                                       
                                                                                                                                
REPRESENTATIVE  MCCABE  said,  "Conversely then,  of  course,  it                                                               
could be  that they're the top  15 percent that just  figure it's                                                               
not  worth their  while to  take  the test  and optout  of it  as                                                               
well."   He  suggested that  the results  would be  statistically                                                               
higher if the data separates the population via cross section.                                                                  
                                                                                                                                
MS.  MONTALBANO deferred  to the  Alaska Department  of Education                                                               
and Early  Development (DEED)  on the issue.   She  expressed the                                                               
understanding  that  the  data  is   a  middle  sampling  of  all                                                               
students.                                                                                                                       
                                                                                                                                
7:13:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE inquired  about  the left  side of  the                                                               
graph on slide  21.  He asked  if the vertical axis  of the graph                                                               
is supposed to be a proficiency percentage in math or reading.                                                                  
                                                                                                                                
MS. MONTALBANO  explained that the  performance percentage  is an                                                               
average of the two subjects in all grades across the state.                                                                     
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE expressed  the  understanding that,  if                                                               
the  districts on  the  left are  correspondence  schools, a  key                                                               
component would  be class size.   He  shared that his  class size                                                               
was two when he was homeschooled.   He expressed the opinion that                                                               
data  on  the size  of  the  class would  help,  as  there is  an                                                               
economic association  because the districts circled  on the graph                                                               
have a  higher economic  portfolio and  possibly a  smaller class                                                               
size.                                                                                                                           
                                                                                                                                
MS.  MONTALBANO encouraged  Representative Ruffridge  to use  the                                                               
Georgetown   Edunonmics  Lab   tool  and   adjust  the   district                                                               
enrollment size settings.  She said  that while it is not exactly                                                               
data on school size, it  would give perspective.  Regarding class                                                               
sizes, she  expressed uncertainty whether this  data is available                                                               
in the tool.  She offered to follow up with the committee.                                                                      
                                                                                                                                
7:15:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  questioned the  chart on slide  21, pointing                                                               
out that most  of the districts shaded red are  below the average                                                               
line, while the majority of  the districts shaded green are above                                                               
the average  line.  He  said this  implies that the  major change                                                               
the  state needs  to make  would be  to get  the students  out of                                                               
poverty.  He further pointed  out that the correspondence schools                                                               
on  the chart  are all  green, which  implies families  with more                                                               
money  send their  children to  charter  schools.   He said  this                                                               
matter comes up in Anchorage  frequently because, although anyone                                                               
is  eligible in  the lottery  system,  there is  no bus  service;                                                               
thus, the  parents who  can enroll students  in a  charter school                                                               
would need to  have the flexibility to  provide transportation to                                                               
and from school.   He questioned whether all  the charter schools                                                               
on the chart are green.                                                                                                         
                                                                                                                                
MS.  MONTALBANO   called  attention  to   several  correspondence                                                               
schools  shaded orange  in  the lower  left of  the  chart.   She                                                               
explained  this means  these schools  would  have lower  outcomes                                                               
along  with lower  spending.    She noted  that  there are  other                                                               
districts shaded a lighter green elsewhere on the chart.                                                                        
                                                                                                                                
7:18:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE expressed  the idea  that charter  schools                                                               
are  doing well  because families  must be  able to  afford these                                                               
schools.   He  continued that  this  makes a  great argument  for                                                               
school vouchers and suggested that  if there were school vouchers                                                               
and school choice, all students  could be sent to charter schools                                                               
and have a better outcome.                                                                                                      
                                                                                                                                
MS. MONTALBANO responded that the  topic of school choice will be                                                               
addressed  later in  the  presentation.   As  for charter  school                                                               
education outcomes, she  said APF has done  studies showing that,                                                               
even  when  comparing  apples-to-apples in  income  levels,  low-                                                               
income  students in  charter schools  are performing  better than                                                               
low-income students in  public schools.  If more  seats were open                                                               
to the lottery, she expressed  the opinion that expanding charter                                                               
school opportunities would be a good idea.                                                                                      
                                                                                                                                
7:19:36 PM                                                                                                                    
                                                                                                                                
CHAIR  CARPENTER  expressed  concern  that  his  statements  were                                                               
misconstrued.   He stated  that he does  not agree  with spending                                                               
more  money on  schools where  economically disadvantaged  people                                                               
live, with the  expectation of better results.   He expressed the                                                               
opinion that  this is a  good example  of why joint  meetings are                                                               
held.   He  expressed the  goal  for the  legislative session  of                                                               
ending  the  "squabbles" over  funding  and  getting the  economy                                                               
going.    He expressed  the  opinion  that,  in  the case  of  an                                                               
economically disadvantaged  school, it would be  the families who                                                               
do not  receive enough money,  not the  schools.  He  argued that                                                               
economic growth policy decisions would  have more impact on these                                                               
families.    He said  there  are  many reasons  why  economically                                                               
disadvantaged individuals  may not  be participating  enough with                                                               
their children, one  of which is the parents are  working all the                                                               
time at a low-wage job.   He suggested that instead of discussing                                                               
the amount  of money the  state should parse out,  members should                                                               
discuss how the economy can grow for everyone.                                                                                  
                                                                                                                                
7:21:30 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO  returned to  the presentation on  slide 22.   She                                                               
explained  that the  data for  the estimate  on K-12  spending is                                                               
from NEA, and 2002 was used  as the baseline because this is when                                                               
NEA  first began  its estimates.    She explained  that the  data                                                               
looks  at  expenditures  per-pupil  by ADA.    All  expenses  are                                                               
considered  current expenditures,  excluding  capital outlay  and                                                               
interest on school debt, which  she said are highly variable from                                                               
year  to  year.    She  said  the  blue  bars  represent  current                                                               
expenditures for  its respective year  per student and ADA.   The                                                               
gold  bars represent  current expenditures  ADA  would have  been                                                               
with  adjustments upward  for the  annual  urban Alaska  consumer                                                               
price index,  non-seasonally adjusted.   She added that  the data                                                               
for  the annual  rate originates  from the  U.S. Bureau  of Labor                                                               
Statistics.                                                                                                                     
                                                                                                                                
MS. MONTALBANO pointed  out the chart illustrates  that from 2002                                                               
to 2008  Alaska saw inflation  outpace school funding.   She said                                                               
that due  to formula changes  in 2008  to 2009, Alaska  jumped to                                                               
$5,000,  with the  state's  actual ADA  staying  well above  2002                                                               
inflation.   This  was until  2021,  when Alaska  was 22  percent                                                               
higher than the inflation rate due  to formula changes.  She said                                                               
that the black line on  the chart represents fourth grade reading                                                               
NAEP scores.  The state received  an average score of 212 in 2003                                                               
and 204  in 2020.   She added that 10  score points equates  to a                                                               
year of  educational attainment.   She said that  while education                                                               
spending was  increased during  2003 to  2020, eight  points were                                                               
still lost.                                                                                                                     
                                                                                                                                
7:24:25 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO  moved to slide 23  to explain that over  the same                                                               
period of  2003 to 2020,  school administration  overtook teacher                                                               
growth.  She expressed the  opinion that, while administration is                                                               
important  for school  leadership,  investing  directly in  high-                                                               
quality  teachers  matters most  for  student  performance.   She                                                               
pointed out that in 2021 there  were four teachers for every five                                                               
staff  members performing  other functions,  which is  the lowest                                                               
ratio  over  this  period.    She  stated  that  school  district                                                               
administrators  grew 17.7  percent between  2008 and  2019, while                                                               
the number of  teachers declined by 5.8 percent.   She noted that                                                               
the funding formula  adjustments were made in 2008.   She related                                                               
that  a  conventional  explanation  would  be  compliance  costs,                                                               
especially at the federal level,  have increased; however, Alaska                                                               
is not unique in administration  growth, as the staff-per-student                                                               
level doubled in the country in the 30 years from 1970 to 1999.                                                                 
                                                                                                                                
7:25:57 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO  discussed the state education  funding formula on                                                               
slide 24,  explaining that the  base student allocation  (BSA) is                                                               
the  amount  allocated  to each  student  before  adjustments  to                                                               
average daily  membership (ADM), which is  the enrollment average                                                               
counted through  20 days in  October of  each year.   She further                                                               
explained  that ADM  adjustment factors  include multipliers  for                                                               
school size,  district cost, special needs,  career and technical                                                               
education, intensive  needs, and correspondence  school students.                                                               
The  formula  is  BSA times  adjusted  average  daily  membership                                                               
(AADM) equals the basic need, and  the basic need is paid in part                                                               
by  required local  contributions  [for an  organized borough  or                                                               
municipality]  and  deductible  federal   impact  aid,  with  the                                                               
remaining  paid by  the state.    She referred  to the  Citizen's                                                             
Guide to  K-12 Funding in  Alaska, which relates that  63 percent                                                             
of  school district  budgeted revenue  is  from the  state.   She                                                               
added that  this is unusually high  when compared to the  rest of                                                               
the country, where typically around  47 percent is contributed by                                                               
the state.                                                                                                                      
                                                                                                                                
7:27:27 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO,  moving to  slide 25, explained  that BSA  is not                                                               
the  only factor  in education  funding.   She  related that  the                                                               
aforementioned guide points  out that without changes  in the BSA                                                               
since  fiscal  year  2008  (FY 08),  changes  in  the  adjustment                                                               
factors would  have increased  K-12 funding by  34 percent.   She                                                               
explained that since 2008 inflation  was 39 percent, and BSA rose                                                               
10.22  percent;  thus,  increases   in  adjustment  factors  plus                                                               
increases in  BSA would meet  or exceed inflation.   She outlined                                                               
what  is funded  on  top  of the  formula,  as follows:  one-time                                                               
grants  from  the  legislature,   federal  grants,  state  funded                                                               
student  transportation,   voluntary  local   contributions  from                                                               
districts, state  contributions to  the Alaska  Public Employees'                                                               
Retirement  System and  the Teachers'  Retirement System,  school                                                               
debt reimbursement,  and the  Regional Education  Attendance Area                                                               
Fund                                                                                                                            
                                                                                                                                
7:29:07 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO,  moving to slide  26, expressed the  opinion that                                                               
Alaska's school choice options are  not treated equally under the                                                               
current  funding  formula.    She  related  that  students  in  a                                                               
correspondence  school  allotment  program   are  counted  as  90                                                               
percent of  BSA for  the district  under the  foundation formula;                                                               
however,  these   students  are  16.5  percent   of  all  Alaskan                                                               
students;  therefore, these  schools  account for  less than  5.3                                                               
percent of total funding.   She explained that the correspondence                                                               
school student  total is  subtracted from  ADM and  multiplied by                                                               
0.9;  therefore, families  get  about a  $2,500 allotment,  which                                                               
varies by school,  but it is still less than  half of the [public                                                               
school]  BSA of  $5,960.   She  pointed  out that  correspondence                                                               
students with  identified special needs are  not given additional                                                               
funding.  She  said Alaska's charter schools are  given an amount                                                               
proportionate to enrollment,  but up to 4 percent  of these costs                                                               
are  retained by  the school  district for  administration.   She                                                               
expressed  the opinion  that charter  capital and  facilities are                                                               
not  funded fairly,  but she  said that  charter schools  do have                                                               
right  of first  refusal  in purchasing  retired school  district                                                               
buildings.    She  explained that  charter  school  construction,                                                               
leasing, and  maintenance grant programs are  not currently being                                                               
funded.                                                                                                                         
                                                                                                                                
7:31:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY  pointed to  slide  23  and asked  for  the                                                               
definition of  "administration" in this  context.  She  said DEED                                                               
has reported  that [funding]  school district  administrations is                                                               
at 2 percent in Alaska.                                                                                                         
                                                                                                                                
MS.  MONTALBANO  explained  that  the data  being  used  is  from                                                               
national statistics,  and the  links on  the slide  define school                                                               
officials, administrators, and administrative support staff.                                                                    
                                                                                                                                
7:32:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY,  in response  to Chair  Carpenter, answered                                                               
that the  2 percent amount  was presented to the  House Education                                                               
Standing Committee.   She stated that she would follow  up to the                                                               
committee with this information.                                                                                                
                                                                                                                                
7:33:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE  questioned  the   quote  on  slide  25                                                               
attributed  to Citizen's  Guide to  K-12 Funding  in Alaska.   He                                                             
stated that he does not recall this statement.                                                                                  
                                                                                                                                
MS. MONTALBANO answered that the  quote came from the Legislative                                                               
Finance Division in the 2023 version at the bottom of page 6.                                                                   
                                                                                                                                
7:34:36 PM                                                                                                                    
                                                                                                                                
MS.  MONTALBANO,  in  response  to a  query  from  Representative                                                               
Himschoot,  answered that  Alaska is  unique, especially  with 19                                                               
school districts not in an  organized borough or municipality and                                                               
not making local contributions.                                                                                                 
                                                                                                                                
7:35:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  referred  to  slide  25  and  provided  his                                                               
understanding  that  it would  have  taken  a specific  statutory                                                               
change to  adjust the formula.   The special needs factor,  as an                                                               
example, increases  BSA by 20 percent  per district.  He  said he                                                               
does not recall any changes since FY 08.                                                                                        
                                                                                                                                
MR GRIFFIN answered that the  intensive-needs factor in FY 08 was                                                               
5; however, now it is 13.                                                                                                       
                                                                                                                                
REPRESENTATIVE  PRAX expressed  the understanding  that intensive                                                               
needs would  go by  the student, while  special needs  and career                                                               
technical education  applies to the  whole school.  He  asked for                                                               
more information regarding this side of the formula.                                                                            
                                                                                                                                
MS. MONTALBANO  explained that more information  about intensive-                                                               
needs funding  and changes to  ADM will  be offered later  in the                                                               
presentation.                                                                                                                   
                                                                                                                                
7:37:45 PM                                                                                                                    
                                                                                                                                
MS  MONTALBANO, in  response to  a  question from  Representative                                                               
McCabe  regarding  additional  federal  funding  for  unorganized                                                               
boroughs, expressed  uncertainty whether  there is a  net funding                                                               
gain in  rural districts.   She said  that the rural  schools get                                                               
more federal  impact aid  to offset the  absence of  property tax                                                               
revenue on federal lands.                                                                                                       
                                                                                                                                
REPRESENTATIVE  MCCABE shared  his advocacy  attempt to  organize                                                               
the unorganized  boroughs.  The argument  against organization is                                                               
it will cost  the state more money if the  boroughs are organized                                                               
because the  impact aid will be  lost.  He expressed  the opinion                                                               
that the county versus borough argument does not make sense.                                                                    
                                                                                                                                
7:40:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY  shared that the  state gets $77  million in                                                               
impact  aid.   Regarding  the 90  percent correspondence  student                                                               
allotment, she  said this is  because the schools have  access to                                                               
brick-and-mortar   school   activities,  classes,   and   special                                                               
education services.  She shared  that in Juneau, the local school                                                               
district  is  required to  service  special  education and  share                                                               
services.                                                                                                                       
                                                                                                                                
7:40:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  pointed to  slide 25  and spoke  to the                                                               
adjustment  factors since  2008 and  asked if  the only  adjusted                                                               
factor was intensive needs.                                                                                                     
                                                                                                                                
MS. MONTALBANO  explained that  there was  a gradual  increase in                                                               
the intensive-needs factor,  going to a multiple of 5  in 2008 to                                                               
a multiple  of 13 several years  later.  She said  that the other                                                               
change  has been  there was  reinstatement of  the hold  harmless                                                               
provision,  which  insulates  school districts  from  changes  in                                                               
membership after adjusting for school  size, which previously had                                                               
a threshold of 10 percent enrollment loss.                                                                                      
                                                                                                                                
7:42:40 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO  returned to  the presentation on  slide 27.   She                                                               
explained that  Alaska's charter school  laws are the  third most                                                               
restrictive  nationwide.    This  is  attributed  to  inequitable                                                               
funding,  administrative   costs,  as  well  as   facilities  and                                                               
transportation  funding.     She  explained  that   Alaska  lacks                                                               
multiple authorizers, making the  local school district board the                                                               
only place  for a  charter school  to become  authorized, whereas                                                               
other states use statewide charter authorizing boards instead.                                                                  
                                                                                                                                
7:43:29 PM                                                                                                                    
                                                                                                                                
MS.  MONTALBANO  moved  to  slides  28  and  29  to  provide  the                                                               
following  recommendations  to   improve  the  education  funding                                                               
formula: end  incentives to keep inefficient  facilities in large                                                               
communities; end or increase the  threshold for the hold harmless                                                               
provision; incentivize  improvement in outcomes;  stop incentives                                                               
to over  identify intensive-needs students; count  ADM across the                                                               
year rather  than a non-representative 20-day  period in October;                                                               
count correspondence  students equally and allow  eligibility for                                                               
certain weights; and give  correspondence students with intensive                                                               
special needs a similar weighting.                                                                                              
                                                                                                                                
7:44:14 PM                                                                                                                    
                                                                                                                                
MR.  GRIFFIN discussed  a recommendation  on  slide 30  regarding                                                               
bond debt  reimbursement.  He  said that a  loophole incentivizes                                                               
large  districts to  maintain small  and inefficient  facilities.                                                               
For  example,  the  Anchorage  School   District  has  built  out                                                               
capacity  to   serve  53,000   students  while   projections  and                                                               
calculations show  that the district  will be at  37,000 students                                                               
or  less if  charter schools  do not  grow by  2027, and  yet the                                                               
small facilities are kept open because  of the loophole.  He said                                                               
that bond  debt reimbursement should  be allowed to  continue but                                                               
only for rapidly growing districts near capacity.                                                                               
                                                                                                                                
7:45:28 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN moved  to slide 31 and  addressed recommended changes                                                               
to the  hold harmless provision.   He said that the  impacts were                                                               
observed  when districts  "doubled-dipped"  into COVID-19  relief                                                               
funding,  in  that,  the   state  is  "essentially  incentivizing                                                               
schools to not work hard to  keep parents in their programs."  He                                                               
continued that  if the  parents leave,  the state  is essentially                                                               
paying the parents for not educating their children.                                                                            
                                                                                                                                
7:46:04 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO  moved to slide  32 to discuss  the recommendation                                                               
to incentivize  outcomes.  She  shared that  Tennessee overhauled                                                               
its  school funding  formula  in 2022,  which  provided for  per-                                                               
student  bonuses  based on  the  following:  third grade  English                                                               
Language  Arts  (ELA) scores,  fourth  grade  ELA growth,  eighth                                                               
grade  math   scores,  American   College  Testing   scores  plus                                                               
improvements from  previous tests, and high  schoolers graduating                                                               
with  industry  credentials.   Florida  provides  a 0.16  percent                                                               
bonus to  ADM for districts  and a teacher-direct bonus  for each                                                               
high  school student  passing an  AP exam  with a  score of  3 or                                                               
higher.  She expressed the  opinion that Alaska should reward the                                                               
schools  getting  results  and   incentivize  behaviors  for  the                                                               
desired results.                                                                                                                
                                                                                                                                
7:47:36 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO  moved to slide  33 and provided  a recommendation                                                               
on intensive-needs weighting.   She compared that in  FY 08 there                                                               
were  1,877   intensive-needs  students,   and  after   AADM  was                                                               
implemented,  this totaled  9,385.   In  FY 23  there were  3,282                                                               
intensive-needs students,  and after  AADM was  implemented, this                                                               
was calculated  to 41,666.  She  said the 13 times  multiplier is                                                               
not representative of the actual  costs of these students because                                                               
Alaska  lumps   together  students  with   disabilities,  English                                                               
language learners, and gifted and talented students.                                                                            
                                                                                                                                
7:48:45 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO  moved to slide  34 to provide  recommendations on                                                               
correspondence  students.     She  expressed  the   opinion  that                                                               
correspondence students  should also receive funding  weights for                                                               
special education and career and  technical education (CTE).  She                                                               
argued that  correspondence students with intensive  needs should                                                               
receive weights to their  allotment like intensive-needs students                                                               
in  traditional  district  schools.   In  example,  an  allotment                                                               
multiplier  of   10  would  allow   parents  to   choose  between                                                               
providers, and while using the  allotment the state would realize                                                               
cost  savings of  three BSAs  per intensive-needs  student.   She                                                               
noted that Florida's Family  Empowerment Scholarship Program lets                                                               
parents choose private sector options  or a public school outside                                                               
of  their zoned  area, with  up to  90 percent  of state  special                                                               
education funding.                                                                                                              
                                                                                                                                
7:49:42 PM                                                                                                                    
                                                                                                                                
MS.  MONTALBANO moved  to slide  35 to  provide a  recommendation                                                               
regarding  the  state's  school size  funding  multiplier.    She                                                               
explained that  schools which  have under  20 students  receive a                                                               
flat multiplier of 39.6 for  all students.  She further explained                                                               
that schools  with more  than 750 students  are penalized  with a                                                               
0.4  multiplier for  every  student  above 750.    She said  that                                                               
schools  with students  above 250  students are  at the  "tipping                                                               
point," because the district receives  less in ADM per additional                                                               
student,  rather  than  the  actual  number  of  students.    She                                                               
elaborated  on the  intent of  the funding  formula, which  is to                                                               
help rural districts with their costs.   She stated that she does                                                               
not  doubt  these  costs,  but  pointed  out  that  large  school                                                               
districts  have incentives  to exploit  the formula  in order  to                                                               
keep  large inefficient  facilities open.   She  said the  median                                                               
school size in Alaska is 177  students, which would have a weight                                                               
of 1.08.   She explained that the lowest tier  multiplier with an                                                               
enrollment of  1 to  20 students  applies to  63 of  Alaska's 513                                                               
schools, and there  are only 26 schools weighted  for having over                                                               
750 students.  She suggested that  one way to address this matter                                                               
is to  create a simple whole  number weight for schools  below 50                                                               
students   and  eliminate   higher   tiers,  or,   alternatively,                                                               
districts  above  a certain  number  of  students should  not  be                                                               
eligible for the school size multiplier.                                                                                        
                                                                                                                                
7:51:46 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN moved to slide 36  and addressed the state's ADM.  He                                                               
relayed  that  Alaska  has  a  rate  of  29  percent  of  chronic                                                               
absenteeism, which  is the highest in  the U.S.  This  is defined                                                               
as when  a student  misses 15  days of school.   He  compared the                                                               
funding  formula to  California,  in that,  California  has a  12                                                               
percent chronic  absenteeism rate.  Furthermore,  Los Angeles has                                                               
a 13  percent rate while  Kenai is at  33 percent.   He suggested                                                               
that  there  be  a  change  in  the  ADM  calculation  to  create                                                               
attendance  accountability.   He explained  that data  suggests a                                                               
budget  based upon  actual daily  membership has  lower rates  of                                                               
chronic absenteeism.                                                                                                            
                                                                                                                                
7:52:49 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO moved to slides 37  and 38 and discussed the types                                                               
of  school choice.   She  explained that  Alaska has  traditional                                                               
neighborhood     public     schools,    public     homeschooling,                                                               
correspondence   schools,   independent  homeschooling,   private                                                               
schools,   public  charter   schools,  and   technical  education                                                               
schools.   She  noted that  32 states  have programs  which would                                                               
allow funding to follow the student in 2023.                                                                                    
                                                                                                                                
7:53:26 PM                                                                                                                    
                                                                                                                                
MS.  MONTALBANO  moved to  slide  39  and suggested  that  Alaska                                                               
students  benefit  from  choice.   She  said  that  according  to                                                               
Performance   Evaluation  for   Alaska's  Schools   (PEAKS)  data                                                               
collected  from  2017  to  2019,  students  in  Alaska's  charter                                                               
schools  performed  better  than students  enrolled  in  Alaska's                                                               
public  schools, regardless  of ethnicity,  gender, or  subgroup.                                                               
She noted  that Alaska scored  the highest nationally  for value-                                                               
added  learning  gains  in  the  Education  Freedom  Index  (EFI)                                                               
Charter School Ecosystem Rankings.                                                                                              
                                                                                                                                
7:54:04 PM                                                                                                                    
                                                                                                                                
MS. MONTALBANO moved  to slide 39 and expressed  the opinion that                                                               
states benefit  academically from  school choice.   She explained                                                               
that,  using  the  EFI,  there  is  a  positive  and  significant                                                               
association between  education freedom  and outcomes in  the form                                                               
of higher  NAEP achievement and gains  in scores.  She  said that                                                               
Alaska ranked forty-second on the  2000 EFI and dropped to forty-                                                               
ninth in  2019.  She  moved to slide  41 and addressed  the meta-                                                               
analysis of  school choice.  She  noted that most of  the studies                                                               
in the presentation attribute school  choice as having a positive                                                               
effect on  academic performance and  parental satisfaction.   She                                                               
moved to  slide 42 and  addressed the fiscal benefit  from school                                                               
choice.    She  shared  that EdChoice  estimated  a  per  student                                                               
savings of  $3,300 to $7,500,  or $12.4 billion to  $28.3 billion                                                               
in savings generated  through FY 18 for the State  of Arizona and                                                               
local  taxpayers  from  the state's  education  savings  account.                                                               
Furthermore, she  said for  each dollar  spent on  private choice                                                               
programs, on average, EdChoice estimated  fiscal savings of $1.80                                                               
to $2.85.                                                                                                                       
                                                                                                                                
7:55:47 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN  moved to  slide 43  and slide  44 and  said Alaska's                                                               
CSAP, with 20,927  students in FY 23 with 90  percent of the BSA,                                                               
is  the most  popular choice  program in  the state.   He  showed                                                               
slide 45, which  displayed the overall expenditures of  CSAP.  He                                                               
explained that statewide  K-12 expenditures in FY  23 were $2.103                                                               
billion, accounting  for 126,553 children.   He pointed  out that                                                               
non-correspondence  students drive  available per-student  funds,                                                               
providing $18,852  per student.   He said that there  are 105,626                                                               
students  in  this  category.     Adjusted  for  2022,  districts                                                               
received, per non-correspondence student,  $4,000 more in funding                                                               
in FY 23 than in FY 05.                                                                                                         
                                                                                                                                
7:56:45 PM                                                                                                                    
                                                                                                                                
MR.   GRIFFIN  stated   that  slide   46  presents   hypothetical                                                               
scenarios.   He  pointed out  the  scenarios on  slide 47,  which                                                               
showed if  the state were  to restrict  correspondence allotment,                                                               
encourage  correspondence allotment,  or  add an  intensive-needs                                                               
option.  Returning  to slide 45, he posed that  if the state were                                                               
to restrict  correspondence schools  entirely and put  all 20,927                                                               
CSAP  students back  to the  brick-and-mortar  schools, the  move                                                               
would generate  $162 million in additional  funding formula costs                                                               
and  a decrease  of $257  per  year in  overall student  funding.                                                               
Slide   48  shows   the  scenario   that  the   state  encourages                                                               
correspondence schools,  changing the  CSAP allotment to  a 1.215                                                               
BSA, which  would raise the  CSAP allotment  to $7,241.   If CSAP                                                               
enrollment  increases to  pandemic  levels of  21.8 percent,  the                                                               
state would save  $87.6 million in the funding  formula, and with                                                               
the  $52.6 million  increase in  correspondence funding,  the net                                                               
savings would be $35 million,  and non-correspondence per student                                                               
funding would go up to $387.                                                                                                    
                                                                                                                                
7:58:07 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN  moved to  slide 49  to discuss  the state  adding an                                                               
intensive-needs  option.   Modeled after  the Family  Empowerment                                                               
Scholarship program  from Florida, if  the state were  to provide                                                               
10 times BSA  for intensive needs for CSAP, and  if 20 percent of                                                               
intensive-needs families  chose a  CSAP provider, there  would be                                                               
$13.7  million in  annual savings  to  the funding  formula.   He                                                               
suggested  that  this  would also  incentivize  districts  to  be                                                               
attentive to students and parents.                                                                                              
                                                                                                                                
7:58:37 PM                                                                                                                    
                                                                                                                                
MR.  GRIFFIN concluded  on slide  50 and  outlined the  takeaways                                                               
from   the  presentation,   which  include:   incentives  matter;                                                               
outcomes are on the rise  but far from acceptable; improvement is                                                               
within  reach; if  not focused,  more  money does  not equate  to                                                               
better results;  the state  poorly allocates  resources, spending                                                               
money  on  buildings  and bureaucracies;  funding  formula  flaws                                                               
divert  resources  from  teachers   and  students;  and  Alaska's                                                               
charter  schools could  be even  better with  fewer restrictions.                                                               
He  suggested  that  healthy competition  improves  outcomes  and                                                               
fiscal efficiency.                                                                                                              
                                                                                                                                
7:59:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  referred to  slide 21 and  recalled the                                                               
discussion on class  size.  He offered the  understanding that in                                                               
the early 2000s Florida had  passed a constitutional amendment on                                                               
school  class size  and funded  the mandated  size with  over $50                                                               
billion in  the span of  20 years.  He  asked why class  size had                                                               
not been discussed during the presentation.                                                                                     
                                                                                                                                
MR. GRIFFIN  answered that APF is  open to returning to  a future                                                               
meeting  to discuss  class size.    He pointed  out that  despite                                                               
Florida's spending  increase, in  order to  reduce class  size in                                                               
schools,  the state  was able  to keep  its budget  in a  "pretty                                                               
tight range" compared to Alaska.                                                                                                
                                                                                                                                
8:00:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  commented that  in the  1980s Finland's                                                               
education  system had  "doubled  down" on  public education,  and                                                               
while  it  does not  have  school  choice, the  public  education                                                               
system has high outcomes.                                                                                                       
                                                                                                                                
MR.  GRIFFIN  said that,  though  Finland  does not  have  school                                                               
choice, a previous  APF presentation had pointed out  many of the                                                               
other top ten  performing districts in Western  Europe are school                                                               
choice  countries.   In  response  to  a follow-up  question,  he                                                               
explained that APF is a nonpartisan  thinktank and is part of the                                                               
State Policy  Network, which includes  about 70  other thinktanks                                                               
across the  U.S.   He shared that  he is a  volunteer and  is not                                                               
familiar with the funding part of APF.                                                                                          
                                                                                                                                
MS. MONTALBANO commented that APF  does not accept any sources of                                                               
government  funding.     She  said  that  APF   is  a  nonprofit,                                                               
nonpartisan thinktank based in Anchorage.                                                                                       
                                                                                                                                
8:02:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT questioned  Mr.  Griffin's  idea for  a                                                               
solution  to  the problem  which  is  not solved  by  buttressing                                                               
Alaska's public schools.                                                                                                        
                                                                                                                                
MR.  GRFFIN  answered  that  the  presentation  has  pointed  out                                                               
statistics which show Alaska is  doing poorly on issues the state                                                               
would  like  to  do  better  on.   Furthermore,  he  pointed  out                                                               
examples  of  places  which  do  educationally  well  with  fewer                                                               
resources.    He  referred  to   slide  50  and  reiterated  that                                                               
incentives  matter, healthy  competition  improves outcomes,  and                                                               
fiscal efficiency has a strong correlation.                                                                                     
                                                                                                                                
8:03:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALLARD  commented that, as a  person with children                                                               
enrolled in a school district,  she appreciated the presentation.                                                               
She  said   that  Mississippi  and   Florida  are  shown   to  be                                                               
successful, especially  with implementing  their own  versions of                                                               
the Alaska  Reads Act.   She expressed  that now  she understands                                                               
that economic growth is directly tied to the education system.                                                                  
                                                                                                                                
8:05:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  expressed appreciation that slide  12 showed                                                               
that  from  2004  to  2022  the  state's  spending  increase  for                                                               
education was less  than the national average.   Also, looking on                                                               
slide  22,  he  expressed  the understanding  that  the  national                                                               
average  score  for the  nation  was  higher  than the  score  in                                                               
Alaska.     He   offered   the  overall   understanding  of   the                                                               
presentation  that education  is not  doing well  in Alaska,  and                                                               
other  states are  doing well  with less;  therefore, instead  of                                                               
spending more money,  Alaska should do as Florida.   He continued                                                               
that  Alaska has  not met  the national  average in  NAEP scores;                                                               
however, he questioned whether the  money should be cut like when                                                               
outcomes  are going  badly  in  other industries.    He gave  the                                                               
example: if  crime goes up in  a city, the state  should not give                                                               
the police  more money  until crime  goes down.   He  argued that                                                               
this is the presentation's message.   He said that in the face of                                                               
lowering  test scores,  the state  should  give to  the issue  to                                                               
improve education  outcomes.  He  expressed the opinion  that the                                                               
presentation is suggesting charter  schools or options from other                                                               
states.   He  stressed  that hiring  and  attracting teachers  in                                                               
Alaska, as well  as getting better outcomes,  will require money.                                                               
He questioned  whether it  has been  suggested that  Alaska would                                                               
not need more money to raise the average test scores.                                                                           
                                                                                                                                
MR.  GRIFFIN  stated  that  Alaska   has  poorly  allocated  K-12                                                               
resources, and by retargeting the  money and incentivizing better                                                               
outcomes, it  is possible [to  improve outcomes] without  much of                                                               
an increase in spending.                                                                                                        
                                                                                                                                
CHAIR  CARPENTER  pointed  out  on  slide 50  that  none  of  the                                                               
takeaways call for a decrease in funding.                                                                                       
                                                                                                                                
MR.  GRIFFIN responded  that  he has  not  advocated or  endorsed                                                               
reducing spending in K-12 education.                                                                                            
                                                                                                                                
8:08:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY  referred  to  the comment  that  APF  is  a                                                               
nonpartisan entity and listed  associated networks: The Goldwater                                                               
Institute,  Americans for  Prosperity, the  American Conservative                                                               
Union Foundation,  Americans for Tax Reform,  the Cato Institute,                                                               
and the  Charles-Koch Institute.   He expressed the  opinion that                                                               
these entities  are not nonpartisan.   He questioned  whether the                                                               
presentation should be considered nonpartisan.                                                                                  
                                                                                                                                
8:09:41 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER commented that there  are plenty of organizations                                                               
which   fall  into   the  Internal   Revenue  Service's   (IRS's)                                                               
definition of  "partisan," and each  member will have  an opinion                                                               
on this.   Furthermore, each member  is going to have  an opinion                                                               
whether one's  activities fall into another's  political beliefs;                                                               
however,  APF  fits the  IRS's  definition  of nonpartisan.    He                                                               
argued that APF  has expressed it is nonpartisan and  has met the                                                               
requirements of the IRS in this status.   He said that APF is not                                                               
a political party and is not  advocating for a solution for which                                                               
a  political  party  is  advocating.   He  continued  that  APF's                                                               
partisanship status has nothing to do with the presentation.                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  thanked Chair  Carpenter for  the definition                                                               
of nonpartisan and apologized for the comment.                                                                                  
                                                                                                                                
8:10:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE,   concerning  slide  12,   expressed  the                                                               
understanding  that  an increase  in  spending  would not  be  an                                                               
increase in  total spending, rather  the amount of  the increase.                                                               
He  expressed  uncertainty that  class  size  would be  relevant;                                                               
however, he welcomed  the discussion.  He spoke  about a fraction                                                               
of  BSA being  spent  on  educating students  and  opined that  a                                                               
better  way to  increase student  outcomes may  be by  increasing                                                               
teacher pay.   Furthermore, he argued for a recall  of a repealed                                                               
2016 law,  which had mandated  that 70 percent of  school funding                                                               
go to funding teachers.                                                                                                         
                                                                                                                                
8:13:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY expressed  her concern  for intensive-needs                                                               
funding and requested that DEED should speak on this.                                                                           
                                                                                                                                
CHAIR CARPENTER concurred.                                                                                                      
                                                                                                                                
8:14:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    GROH    offered    the    understanding    that                                                               
Representative  McCabe is  suggesting  that teacher  compensation                                                               
should  be increased,  and  he added  that  defined benefits  for                                                               
teachers should also be investigated.                                                                                           
                                                                                                                                
8:15:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX spoke about  the Fairbanks North Star Borough                                                               
School  district,  and  its  increase  in  correspondence  school                                                               
attendance,  and  the importance  of  having  a discussion  about                                                               
allowing parental choice.                                                                                                       
                                                                                                                                
CHAIR  CARPENTER  said  he  has   had  similar  discussions  with                                                               
administrators in his district but has not received an answer.                                                                  
                                                                                                                                
8:16:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY  shared that the Juneau  School District has                                                               
the  Tlingit  Culture   Language  Literacy  program,  Montessori,                                                               
Charter School,  Homebridge, and  the neighborhood schools.   She                                                               
said that,  according to  DEED, a statistic  shows 83  percent of                                                               
students are in brick-and-mortar schools,  with 17 percent are in                                                               
correspondence schools.                                                                                                         
                                                                                                                                
8:17:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX commented  that  another  matter APF  should                                                               
investigate is the  Molly Hootch Case [Tobeluk v.  Lind, 589 P.2d                                                             
873  (1979)].   He  expressed the  understanding  that this  case                                                               
drives Alaska school system spending.                                                                                           
                                                                                                                                
8:17:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE   stated  that  discussions   with  school                                                               
administrators  have related  that 74  percent of  school funding                                                               
goes  to instruction.   He  said that  the current  definition of                                                               
"instruction"  includes  all  the  buildings in  Kodiak  and  Mt.                                                               
Edgecumbe, for example, as well  as the administrative costs.  He                                                               
stated that he  has sent a request to have  the costs broken down                                                               
to understand the funds schools receive  but has yet to receive a                                                               
reply.  He also brought up the subject of false report cards.                                                                   
                                                                                                                                
8:19:04 PM                                                                                                                    
                                                                                                                                
MR.  GRIFFIN, regarding  17 percent  of  parents enrolling  their                                                               
children in  correspondence programs, expressed the  opinion that                                                               
it is easy to  put a child on a bus and later  pick the child up.                                                               
He said the fact Alaska has  a large percentage of parents "doing                                                               
the hard thing" sends a strong message.                                                                                         
                                                                                                                                
8:19:31 PM                                                                                                                    
                                                                                                                                
MS.  MONTALBANO  referred  to  a study  by  EdChoice,  which  she                                                               
summarized as  "what parents desire  is not always what  they are                                                               
able  to do."   She  explained that  when there  are more  choice                                                               
options, parents  are able to  utilize those options  better, and                                                               
behaviors would  align with  preferences.   She said  the biggest                                                               
takeaway  from today's  presentation is  that incentives  matter.                                                               
She said the presentation has  shown examples of how other states                                                               
have  changed funding  formulas  to reward  the desired  results.                                                               
She clarified  that this does not  mean the state needs  to spend                                                               
less overall, but  rather to target funding  to improve outcomes.                                                               
She voiced that it is a  "travesty" many of Alaska's students are                                                               
not at  a basic  level in reading  proficiency, and  APF supports                                                               
100 percent of students reaching 100 percent potential.                                                                         
                                                                                                                                
8:21:02 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business  before the committees, the House                                                               
Special Committee on Ways and  Means and House Education Standing                                                               
Committee meeting was adjourned at 8:21 p.m.                                                                                    

Document Name Date/Time Subjects
Joint House Ways and Means, Education Presentation.pdf HW&M 3/15/2023 6:00:00 PM
Education Funding
Follow-Up From Alaska Policy Forum 3-15-23 Presentation.pdf HW&M 3/15/2023 6:00:00 PM