Legislature(2023 - 2024)SENATE FINANCE 532

04/13/2023 09:00 AM Senate FINANCE

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09:01:40 AM Start
09:02:37 AM SB52
11:00:32 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 13, 2023                                                                                            
                         9:01 a.m.                                                                                              
9:01:40 AM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair Olson  called the Senate Finance  Committee meeting                                                                    
to order at 9:01 a.m.                                                                                                           
MEMBERS PRESENT                                                                                                               
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
Senator David Wilson                                                                                                            
MEMBERS ABSENT                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
ALSO PRESENT                                                                                                                  
Senator  Cathy Giessel;  Senator Loki  Tobin, Sponsor;  Mike                                                                    
Mason,  Staff, Senator  Loki  Tobin;  Heidi Teshner,  Acting                                                                    
Commissioner,    Department   of    Education   and    Early                                                                    
Development;  Elwin   Blackwell,  School   Finance  Manager,                                                                    
Department of Education and  Early Development; Brian Holst,                                                                    
Executive  Director,  Juneau Economic  Development  Council;                                                                    
Senator  Mike  Shower;  Dr.  Roy  Getchell,  Superintendent,                                                                    
Haines Borough School District.                                                                                                 
PRESENT VIA TELECONFERENCE                                                                                                    
Jamie Burgess, Superintendent, Nome Public Schools.                                                                             
SB 52     INCREASE BASE STUDENT ALLOCATION                                                                                      
          SB 52 was HEARD and HELD in committee for further                                                                     
SENATE BILL NO. 52                                                                                                            
     "An  Act relating  to  education;  increasing the  base                                                                    
     student  allocation;  and  providing for  an  effective                                                                    
9:02:37 AM                                                                                                                    
SENATOR  LOKI TOBIN,  SPONSOR, discussed  SB  52, which  was                                                                    
sponsored by  the Senate Education  Committee. She  spoke of                                                                    
testimony  from  various   stakeholders  that  detailed  the                                                                    
challenges  faced by  school  administrators, students,  and                                                                    
educators. She  discussed a PowerPoint  presentation "Senate                                                                    
Bill 52 -  An Act to Increase the  Base Student Allocation,"                                                                    
(copy on file).                                                                                                                 
Senator Tobin  looked at  slide 2,  which showed  the public                                                                    
education clause  in the  Alaska Constitution,  Article VII,                                                                    
Section 1:                                                                                                                      
     The  legislature shall  by  general  law establish  and                                                                    
     maintain  a  system  of  public  schools  open  to  all                                                                    
     children  of  the  state, and  may  provide  for  other                                                                    
     public    educational    institutions.   Schools    and                                                                    
     institutions   so  established   shall  be   free  from                                                                    
     sectarian control.  No money shall be  paid from public                                                                    
     funds for the direct benefit  of any religious or other                                                                    
     private educational institution.                                                                                           
9:04:51 AM                                                                                                                    
Senator Tobin  spoke to  slide 3,  "Kristine Moore,  et al.,                                                                    
vs. State of Alaska":                                                                                                           
     • Article 7, Section 1 requires the state to:                                                                              
          • The State must establish educational standards.                                                                     
          • The State must assess for those standards.                                                                          
          • The State must adequately fund schools so they                                                                      
         can provide instruction in the standards.                                                                              
          •  In delegating  the responsibility  to education                                                                    
          children  to  local  school districts,  the  state                                                                    
          must    provide   adequate    accountability   and                                                                    
          oversight to ensure districts are fulfilling the                                                                      
          State's constitutional obligation.                                                                                    
9:05:50 AM                                                                                                                    
Senator Tobin referenced slide 4, "The Moore Lawsuit                                                                            
     The Moore  legal settlement  states that  the Education                                                                    
     Clause of the Alaska  Constitution includes a right for                                                                    
     every child to have  a meaningful opportunity to become                                                                    
     proficient  in reading,  writing, and  math, and  to be                                                                    
     able to  meaningfully explore curriculum  content areas                                                                    
     that  were   not  assessed  by   State  standards-based                                                                    
9:06:22 AM                                                                                                                    
Senator Tobin turned to slide 5, "Base Student Allocation                                                                       
     Right  now,  the  authorized  Base  Student  Allocation                                                                    
     (BSA) for Alaska is $5,960.                                                                                                
          • That includes the $30 increase authorized in                                                                        
          the Alaska Reads Act.                                                                                                 
          • The $30 increase goes into effect at the start                                                                      
          of FY 2024.                                                                                                           
     Senate Bill 52 calls  for an additional $1,000 increase                                                                    
     to the  BSA in FY 24,  which begins on July  1. (Cost =                                                                    
     $257.2 million)                                                                                                            
          • SB 52 includes an additional $348 BSA increase                                                                      
          in FY 25, which begins on July 1, 2024.                                                                               
          • SB 52 includes an inflation adjusted BSA                                                                            
          increase in FY 26, which begins on July 1, 2025.                                                                      
     Legislative Finance estimates that  each $100 change in                                                                    
     the  BSA  is estimated  to  increase  state funding  by                                                                    
     $25.7 million.                                                                                                             
9:06:50 AM                                                                                                                    
Senator Tobin  considered slide 6,  which showed a  graph of                                                                    
Alaska   K-12  funding.   She   asserted   that  the   graph                                                                    
highlighted  the  unpredictability  of  one-time  funds  for                                                                    
Alaskas   schools.  She   contended  that  one-time  funding                                                                    
resulted in a  feast or  famine  culture in public education                                                                    
funding, which  had become apparent as  school boards across                                                                    
the  state attempted  to finalize  their FY24/FY25  budgets.                                                                    
She   stressed  that   record  inflation   had  eroded   the                                                                    
purchasing power of school districts.                                                                                           
9:07:29 AM                                                                                                                    
Senator   Tobin  displayed   slide   7,  "Increased   School                                                                    
Accountability and Transparency":                                                                                               
     SB 52 amends the Alaska Reads Act to                                                                                       
          •  Develop a  more  user-friendly data  dashboard,                                                                    
          leveraging remaining COVID  relief funds to expand                                                                    
          capacity  at DEED  to  support  districts in  data                                                                    
          collection and presentation.                                                                                          
          •  Collaborate with  the  Department of  Workforce                                                                    
          Development  and  Labor  to  provide  longitudinal                                                                    
          data of student outcomes.                                                                                             
          • Empower school  boards, administrators, parents,                                                                    
          and policymakers  to make better  policy decisions                                                                    
          at the local level.                                                                                                   
9:09:23 AM                                                                                                                    
Senator Tobin  highlighted slide  8, which  showed headlines                                                                    
from various Alaskan news outlets.  She summarized that that                                                                    
there was  great need  for predictable,  sustainable funding                                                                    
for public education in the state.                                                                                              
9:10:01 AM                                                                                                                    
Senator  Tobin looked  at slide  9,   The Alaska  Foundation                                                                    
     Alaskas   first  foundation   formula  was  enacted  in                                                                    
     1962(ch.164, SLA 1962) based  on recommendations from a                                                                    
     school  finance study  released by  the State  Board of                                                                    
     Education in 1961.                                                                                                         
          23-085   History    of   K-12    School   funding,                                                                  
          Legislative Research Services                                                                                       
     The  study  team   believes  Alaskas   current  funding                                                                    
     system has the  right elements in place  to address the                                                                    
     variations  described   aboveAdditionally,    the  data                                                                    
     show   a  system   where  increases   in  instructional                                                                    
     expenditures are tied to increases in student                                                                              
     performance on the Alaska Standards Based Assessments.                                                                     
          Review of Alaska's School Funding Program,                                                                          
          Prepared for the Alaska State Legislature by                                                                        
          Augenblick, Palaich and Associates, July 2015                                                                       
Senator Tobin shared that in  2008 the legislature had built                                                                    
upon  the  foundation  formula   and  in  2015,  researchers                                                                    
commissioned  by the  legislature  had  determined that  the                                                                    
states   foundation  formula  was equitable  and  fair.  She                                                                    
stressed  that the  BSA increase  would benefit  all public-                                                                    
school students.                                                                                                                
9:10:51 AM                                                                                                                    
Senator  Tobin addressed  slide 10,  which showed  three pie                                                                    
charts that  illustrated an  education funding  overview and                                                                    
school  district  expenditure  breakdown  by  category.  She                                                                    
stressed that  statewide 74 percent  of school  funding went                                                                    
directly to classrooms.                                                                                                         
9:11:22 AM                                                                                                                    
Senator Tobin advanced to slide 11, "DEED Quick Facts":                                                                         
     Instructional staff comprise 74 percent of public-                                                                         
     school labor force.                                                                                                        
         • 2022-2023 Pupil to Teacher Ratio 17.55.                                                                              
               o7,298 classroom teachers, average salary                                                                        
         • 2014-2015 Pupil to Teacher Ratio 16.42.                                                                              
               o 8,027 classroom teachers, average salary                                                                       
               $66,755.67 ($85,854.65 in FY23 dollars)                                                                          
         • 2010-2011 Pupil to Teacher Ratio 15.60.                                                                              
               o 8,468 classroom teachers, average salary                                                                       
               $61,439.63 ($85,300.45 in FY23 dollars)                                                                          
9:11:50 AM                                                                                                                    
Senator Tobin  looked at slide  12, "Education  Funding Lags                                                                    
Behind inflation.":                                                                                                             
      Inflation is at a 40-year high. (8 percent inflation                                                                      
     in 2022)                                                                                                                   
      Schools have lost purchasing power, and therefore                                                                         
     programs and services have been cut.                                                                                       
      From 2012 to 2022, the  BSA has only increased by $250                                                                    
     per   student  (4.2   percent)   while  inflation   has                                                                    
     increased  by  at  least 24  percent  (Anchorage  CPI),                                                                    
     resulting   in   crippling  staff   shortages,   school                                                                    
     closures, and program eliminations.                                                                                        
      The Alaska Association of  School Boards advocates for                                                                    
     not less than an $860 increase to the BSA for FY 2024.                                                                     
      The Anchorage  School District has calculated  that an                                                                    
     inflation proofed  BSA for fiscal year  2024 would need                                                                    
     to increase by $1,268.                                                                                                     
      Legislative Finance  notes that the BSA  would need to                                                                    
     be  $7,155 to  match the  buying power  of the  FY 2017                                                                    
9:12:36 AM                                                                                                                    
Senator Tobin showed slide 13, "One-Time Funding vs the                                                                         
     When funding from outside the foundation                                                                                   
     formula is added in, FY 2015 becomes the new                                                                               
     peak year for funding. ($43.0 million in one-time                                                                        
     For FY 2024 24 to match the FY 2015 funding                                                                                
     level in real terms, the BSA would need to                                                                               
     increase by $1,348 in FY 2024.                                                                                           
     Legislative  Budget and  Audit  Committee, January  30,                                                                    
     2023, Memorandum                                                                                                           
9:12:55 AM                                                                                                                    
Senator Bishop thanked Senator Tobin for her work on the                                                                        
9:13:51 AM                                                                                                                    
Co-Chair Olson wondered how it would be known that                                                                              
additional funding was going towards teacher salaries and                                                                       
the effort toward teacher retention.                                                                                            
Senator Tobin thought the question might be best addressed                                                                      
by invited testifiers, who could discuss how the funds                                                                          
would be allocated at the local level.                                                                                          
Co-Chair Olson understood that the school administration                                                                        
and school board set teacher salary.                                                                                            
Senator Tobin replied in the affirmative.                                                                                       
9:15:00 AM                                                                                                                    
MIKE MASON, STAFF, SENATOR LOKI TOBIN, discussed a                                                                              
Sectional Analysis (copy on file):                                                                                              
     Senate  Bill  52:   Increase  Base  Student  Allocation                                                                    
     Version S Sectional Analysis                                                                                               
     "An  Act relating  to  education;  increasing the  base                                                                    
     student  allocation;  and  providing for  an  effective                                                                    
     Section  1      Amends  AS  14.03.120  to   add  a  new                                                                    
     subsection  (k)  requiring  the  Alaska  Department  of                                                                    
     Education  and Early  Development  (DEED) to  establish                                                                    
     and  maintain  an easy-to-understand  internet  website                                                                    
     that  allows  a  member  of  the  public  to  view  and                                                                    
     download  information,  and   to  make  recommendations                                                                    
     relating to improving public education  in the State of                                                                    
     The website must include  information required under AS                                                                    
     14.03.078, which  is the statute that  requires DEED to                                                                    
     provide  annual progress  reports to  the Alaska  State                                                                    
     Legislature about school districts.                                                                                        
     The  website must  also  include  information from  the                                                                    
     annual  audit of  school  districts  required under  AS                                                                    
     14.14.050  and   a  description  of  how   each  school                                                                    
     district  is  addressing  the  needs  of  students  who                                                                    
     receive special education services.                                                                                        
     The  website   must  also  include  a   description  of                                                                    
     resources provided to  school districts regarding staff                                                                    
     training,  progress in  aligning curriculum  with state                                                                    
     education performance  standards, and a  description of                                                                    
     the  efforts  of  DEED  to  assist  schools  or  school                                                                    
     districts  that receive  a low  performance designation                                                                    
     under AS 14.03.123.                                                                                                        
     Subsection (L)  allows school district  to link  to the                                                                    
     new website on their websites.                                                                                             
     Subsection  (m) directs  the  Department  of Labor  and                                                                    
     Workforce  Development  to  collaborate  with  DEED  to                                                                    
     gather  data  on  the  progress  of  each  high  school                                                                    
     graduating  class in  a  district.  The agencies  would                                                                    
     gather information on  career, postsecondary education,                                                                    
     and residency  data on each  student in  the graduating                                                                    
     class. The departments must gather  the data every five                                                                    
     years until  20 years after the  high school graduating                                                                    
     date of the high school class.                                                                                             
     Section 2    Amends Section 15 of the  Alaska Reads Act                                                                    
     to add  subsection (20)  requiring DEED  to collaborate                                                                    
     with the Department of  Labor and Workforce Development                                                                    
     to  gather data  on the  progress of  each high  school                                                                    
     graduating   class  under   the  new   AS  14.03.120(m)                                                                    
     authorized in Section 1 of the Act.                                                                                        
     Section 3    Amends  AS 14.07.020(a) to  add subsection                                                                    
     (18) to  include the collaboration with  the Department                                                                    
     of  Labor and  Workforce Development  to the  duties of                                                                    
     the   Alaska   Department   of  Education   and   Early                                                                    
     Section 4    Amends  the Alaska  Reads Act,  House Bill                                                                    
     114  from   the  32nd  Alaska  State   Legislature,  to                                                                    
     increase  the  Base  Student  Allocation  (BSA)  by  an                                                                    
     additional  $1,000  in  fiscal year  2024.  The  Alaska                                                                    
     Reads  Act amended  AS 14.17.470,  the BSA  statute, to                                                                    
     increase the  BSA from $5,930  to $5,960. Section  4 of                                                                    
     Senate Bill 52 further  amends AS 14.17.470 to increase                                                                    
     the BSA to $6,960.                                                                                                         
     Section 5   Amends AS  14.17.470 to increase the BSA to                                                                    
     $7,308. The  $348 increase to  the BSA takes  effect in                                                                    
     Fiscal Year 2025.                                                                                                          
     Section  6      Amends  AS  14.17.470  to   add  a  new                                                                    
     subsection  (b) requiring  DEED  to  increase the  base                                                                    
     student  allocation on  July 1,  2025, by  a percentage                                                                    
     equal to  the average  percentage of increase  over the                                                                    
     preceding  four  calendar years  in  all  items of  the                                                                    
     Consumer Price Index for all  urban consumers for urban                                                                    
     Alaska prepared  by the U.S.  Department of  Labor. The                                                                    
     inflation  adjustment  takes  affect at  the  start  of                                                                    
     fiscal year 2026.                                                                                                          
     Section 7   Amends AS  44.31.020 to add subsection (8),                                                                    
     which  adds  the  requirement to  gather  data  on  the                                                                    
     progress  of  high  school graduating  classes  to  the                                                                    
     duties of the Alaska  Department of Labor and Workforce                                                                    
     Development. Subsection (8)  requires the Department to                                                                    
     publish a biennial  report on the data  gathered on the                                                                    
     progress of each high school graduating class.                                                                             
     Section 8   Stipulates that  Section 3 of the Act takes                                                                    
     effect on July 1, 2023.                                                                                                    
     Section 9   Stipulates that  Section 2 of the Act takes                                                                    
     effect on July 1, 2023.                                                                                                    
     Section  10     Stipulates  that  the  new  subsections                                                                    
     authorized by Section 1 of  the Act take effect on July                                                                    
     1, 2024.                                                                                                                   
     Section 11    Stipulates  that AS  14.03.120(m) enacted                                                                    
     by section 1 of this Act,  and sections 6 and 7 of this                                                                    
     Act take effect on July 1, 2025.                                                                                           
9:19:35 AM                                                                                                                    
Senator Tobin  interjected that the  bill proposed  to amend                                                                    
the  Alaska Reads  Act when  increasing  the BSA  in SB  52,                                                                    
based on advice from legislative legal.                                                                                         
9:20:20 AM                                                                                                                    
Co-Chair  Stedman  inquired  about  inflation  indexing  and                                                                    
wondered  why the  bill included  inflation proofing,  which                                                                    
could put the legislature in  the precarious position of not                                                                    
being able to control the budget.                                                                                               
Senator Tobin stated that the provision was a policy call.                                                                      
Mr. Mason  noted that there  was only one year  of inflation                                                                    
adjustment for FY 26.                                                                                                           
Co-Chair   Stedman   commented   that   $257   million   was                                                                    
significant,  which would  increase  to  $430 million  after                                                                    
inflation proofing.  He asked  whether the  Senate Education                                                                    
Committee had discussed where the  money would come from. He                                                                    
added that the  state was already struggling  to balance its                                                                    
operating budget.                                                                                                               
Senator Tobin  relayed that there  had not  been discussions                                                                    
as to  how the bill would  be funded. She believed  that the                                                                    
matter should be sorted by the finance committees.                                                                              
Co-Chair  Olson  considered  the original  bill,  which  was                                                                    
seven  lines long,  and noted  the  significant increase  in                                                                    
page numbers and  financial impact after being  moved out of                                                                    
the Senate Education Committee.                                                                                                 
Mr. Mason explained  that the first version of  the bill had                                                                    
been a simple $1000 increase  through FY24. The additions to                                                                    
the  bill had  been considered  after much  public testimony                                                                    
and committee discussion by the Senate Education Committee.                                                                     
9:24:12 AM                                                                                                                    
Senator  Tobin commented  that in  committee there  had been                                                                    
many discussions  after much public  testimony about  how to                                                                    
provide stable and predictable  funding streams for Alaskas                                                                     
public schools.                                                                                                                 
9:24:59 AM                                                                                                                    
Co-Chair  Stedman understood  the  inflation  indexing.   He                                                                    
thought there  was very little  argument about  changing the                                                                    
BSA. He was curious what  the Senate Education Committee had                                                                    
discovered  about the  ability  of the  school districts  to                                                                    
absorb funding  increases without squandering  liquidity. He                                                                    
wanted to hear input from different school districts.                                                                           
Senator  Tobin relayed  that the  committee  had heard  from                                                                    
many  superintendents and  school boards  who were  eager to                                                                    
absorb  the additional  funding.  She  shared that  teachers                                                                    
were not applying to jobs  in Alaska and school districts in                                                                    
the state were unable to offer competitive salaries.                                                                            
9:27:47 AM                                                                                                                    
Co-Chair Olson  suggested that the  department follow  up on                                                                    
the issue.                                                                                                                      
9:28:06 AM                                                                                                                    
Senator Bishop appreciated  Section 1, 3 and  7. He stressed                                                                    
that  the Department  of Labor  working in  conjunction with                                                                    
the Department of  Education was an inspired  idea and would                                                                    
address any issue of student accountability.                                                                                    
Senator Tobin  thanked Senator Bishop  for his  guidance and                                                                    
Co-Chair  Olson  commented  that   recruiting  had  been  an                                                                    
obstacle in the Bering Straits School District.                                                                                 
9:30:15 AM                                                                                                                    
AT EASE                                                                                                                         
9:34:02 AM                                                                                                                    
HEIDI TESHNER, ACTING  COMMISSIONER, DEPARTMENT OF EDUCATION                                                                    
AND  EARLY DEVELOPMENT,  discussed  a new  fiscal note  from                                                                    
Department   of  Education   and   Early  Development,   OMB                                                                    
Component 141. She read from the fiscal analysis:                                                                               
     The  funding mechanism  is a  general fund  transfer to                                                                    
     the  Public  Education  Fund  (PEF).  The  fiscal  note                                                                    
     effect  for FY2024  through FY2029  is reported  in the                                                                    
     fiscal note  for the PEF,  as the funding  is deposited                                                                    
     to  the PEF,  not into  the Foundation  Program funding                                                                    
     component.  The above  analysis is  presented here  for                                                                    
     explanation purposes only.                                                                                                 
Acting Commissioner  Teshner explained  that the  note, Fund                                                                    
Capitalization,  OMB Component  2804, reflected  the funding                                                                    
to the Public Education Fund:                                                                                                   
SB52 will increase the base  student allocation (BSA), under                                                                    
AS  14.17.470,  by  $1,000   in  the  public-school  funding                                                                    
formula.  The  BSA will  change  from  $5,960 to  $6,960  in                                                                    
FY2024 resulting  in a $257  million increase in  funding to                                                                    
school districts.  The BSA will increase  an additional $348                                                                    
in  FY2025   from  $6,960  to  $7,308.   The  Department  of                                                                    
Education  and Early  Development  (DEED)  is instructed  to                                                                    
apply a Consumer Price Index  (CPI) adjustment to the BSA in                                                                    
FY2026 by taking the average  of the preceding four calendar                                                                    
years of the CPI for all urban consumers (CPI-U) in Alaska.                                                                     
For the  purposes of  developing a  fiscal note,  the FY2026                                                                    
CPI-U average is estimated to be 4.50%.                                                                                         
Acting Commissioner Teshner explained  that there had been a                                                                    
third  page  attached  to  the  note  that  broke  down  the                                                                    
increases by  district, which was  missing from  the current                                                                    
document before the members.                                                                                                    
Co-Chair Olson asked when it would be given to members.                                                                         
Acting  Commissioner Teshner  replied  that  the third  page                                                                    
would be sent to the committee within the day.                                                                                  
9:36:28 AM                                                                                                                    
Acting  Commissioner Teshner  addressed  a  new fiscal  note                                                                    
from  DEED for  Student  School  Achievement, OMB  Component                                                                    
     To   perform  and   coordinate  the   data  collection,                                                                    
     tracking,  and   collaboration  with  DLWD   and  other                                                                    
     stakeholders  needed  for  this legislation,  it  would                                                                    
     require one Program Coordinator  1, Range 18, Step B/C,                                                                    
     at  $114.7.  In  addition,  department  chargebacks  of                                                                    
     $10.1  would be  needed, plus  a one-time increment  of                                                                    
     $5.0 for supplies and equipment.                                                                                           
Acting Commissioner  Teshner relayed that the  total request                                                                    
in the FY 24 appropriation  column was $129.8 thousand, with                                                                    
$2.9  million already  included in  the governors   proposed                                                                    
9:37:25 AM                                                                                                                    
Co-Chair Stedman asked whether  the department supported the                                                                    
bill.  He queried  how the  department planned  to fund  the                                                                    
Acting  Commissioner  Teshner  relayed that  the  department                                                                    
supported  adequate   funding  for  school   districts.  She                                                                    
qualified that  how the state funded  the adequate financial                                                                    
support  for school  districts was  a discussion  that would                                                                    
need   to   happen   between   the   legislature   and   the                                                                    
Co-Chair Stedman  asked whether  she believed  that adequate                                                                    
funding was a 25 percent reduction  in the BSA. He asked her                                                                    
to define adequate funding.                                                                                                     
Acting  Commissioner Teshner  thought  the definition  would                                                                    
vary from  district to district.  She said the  answer would                                                                    
be based on the funds available by the state.                                                                                   
Co-Chair Stedman  thought the  Senate Finance  Committee was                                                                    
the  ideal place  to have  the  conversation about  adequate                                                                    
funding. He  wanted to know  what the  department considered                                                                    
adequate funding for education.                                                                                                 
Acting  Commissioner Teshner  thought  any  increase to  the                                                                    
foundation formula  would help  districts. She was  not able                                                                    
to  provide a  range or  a  number. She  emphasized that  it                                                                    
depended  on  what  was available  after  weighing  all  the                                                                    
9:39:39 AM                                                                                                                    
Co-Chair  Olson  suggested  that school  boards  and  school                                                                    
administrators  could  be  brough before  the  committee  to                                                                    
testify about adequate funding.                                                                                                 
Acting Commissioner  Teshner replied  that it  was important                                                                    
to  consider  that  some  districts  had  one-time  Covid-19                                                                    
funding  that  still  needed  to be  spent.  She  said  that                                                                    
districts  had  been  directed  not to  use  the  money  for                                                                    
ongoing  operations.  She  stated that  increasing  the  BSA                                                                    
would  provide   districts  with  consistent   funding.  She                                                                    
thought any increase would be helpful.                                                                                          
Co-Chair Stedman  noted the $257  million request  for FY24,                                                                    
and  the  FY25  request  for $346  million,  and  considered                                                                    
affordability of  the requests with competing  resources. He                                                                    
reminded the chairman that the  budget recently submitted to                                                                    
the committee  was short  by $500  million, which  was after                                                                    
the other  body had modified  the dividend payout  for 2024.                                                                    
He worried that  the state could be  facing a billion-dollar                                                                    
budget deficit and thought that  prudent decisions should be                                                                    
made. He  pointed out that  under the legislation  the North                                                                    
Slope was looking  at a 44 percent increase  in funding over                                                                    
the next  two years. He  reiterated his desire to  know from                                                                    
the school  districts whether they could  effectively absorb                                                                    
increased funding.                                                                                                              
9:42:44 AM                                                                                                                    
Co-Chair Olson  commented on a  school in Kaktovik  that had                                                                    
burned down and had not yet been rebuilt.                                                                                       
Co-Chair  Stedman  understood  that   the  question  to  the                                                                    
department  was complicated.  He pointed  out that  not only                                                                    
was  there  a  need  for guidance  from  the  department  on                                                                    
funding, but it  was highly likely that there  would be some                                                                    
recommended  changes  to  the  Teacher's  Retirement  System                                                                    
(TRS) and  the funding  levels. He  thought that  the matter                                                                    
was one of  limited liquidity. He stressed that  the BSA was                                                                    
only  one  of many  issues  facing  the  state in  terms  of                                                                    
Co-Chair Olson  commented that the  committee was  trying to                                                                    
balance the proposed budget and  be sure there was available                                                                    
funding for future operating and capital budgets.                                                                               
9:46:20 AM                                                                                                                    
Senator  Bishop   asked  for  a  modicum   of  latitude.  He                                                                    
expressed  concern  about  keeping  school  maintenance  and                                                                    
major maintenance funding at the forefront.                                                                                     
Acting  Commissioner  Teshner addressed  Co-Chair  Stedman's                                                                    
remarks. She  expressed that there  were districts  that had                                                                    
ongoing  operation al  costs.  She  believed most  districts                                                                    
would  be  able absorb  and  use  the proposed  increase  in                                                                    
9:48:53 AM                                                                                                                    
Co-Chair Stedman  wanted to make  a point  of clarification.                                                                    
He recalled that  the previous year the  legislature put $57                                                                    
million in  the budget for  education. He asked if  the $100                                                                    
increase could be on the base BSA.                                                                                              
Acting Commissioner Teshner had  heard that the $30 increase                                                                    
to the  BSA that had been  included in the Alaska  Reads Act                                                                    
had  not been  sufficient and  a $100  increase should  be a                                                                    
9:49:49 AM                                                                                                                    
Co-Chair Stedman wanted to know  if the department was using                                                                    
the $5960 as  the base or was the funding  from the previous                                                                    
year included.                                                                                                                  
Acting Commissioner  Teshner explained  that the  $5960 that                                                                    
was currently  in statute  for FY24, was  the base,  and did                                                                    
not include the one-time funding from the previous year.                                                                        
9:50:31 AM                                                                                                                    
Senator Kiehl asked whether the  department was suggesting a                                                                    
reduction  of  $30 million  statewide,  going  from the  $57                                                                    
million  of one-time  money, to  $27 million  in sustainable                                                                    
Acting  Commissioner   Teshner  emphasized   that  districts                                                                    
needed inside the formula, sustainable  funding. She was not                                                                    
proposing a cut to districts.                                                                                                   
Senator Kiehl was  interested in how the  minimum number was                                                                    
reached.  He wanted  clarification on  the notion  that most                                                                    
districts were in a position  of having more than 10 percent                                                                    
in reserves.                                                                                                                    
Co-Chair Olson  thought the $100  increase was  an arbitrary                                                                    
number that was used as a starting point.                                                                                       
Acting  Commissioner Teshner  agreed.  She  said that  there                                                                    
were  approximately  30  districts  that were  over  the  10                                                                    
percent limit. She offered to provide more information.                                                                         
9:53:06 AM                                                                                                                    
ELWIN  BLACKWELL,  SCHOOL  FINANCE  MANAGER,  DEPARTMENT  OF                                                                    
EDUCATION AND EARLY DEVELOPMENT,  offered his perspective on                                                                    
the bill.  He could not  speak to  the dollar amount  in the                                                                    
bill. He  said that  districts are at  the point  where they                                                                    
needed  additional  resources  to  continue  operations.  He                                                                    
asserted  that   the  static  BSA  would   not  provide  the                                                                    
resources  needed  to  keep  up  with  increased  costs.  He                                                                    
lamented that  teacher to student ratios  would increase due                                                                    
to much  of the resources  going to  other fixed costs.   He                                                                    
referenced increased fuel costs.  He thought that there were                                                                    
bills  in  play that  could  help  alleviate the  strain  on                                                                    
districts. He  did not  have a figure  for the  increase; he                                                                    
thought any amount would be more helpful than no increase.                                                                      
9:54:52 AM                                                                                                                    
Co-Chair Stedman  recalled that  the previous  year increase                                                                    
outside the  formula of $58  million should be the  base for                                                                    
suggested increase.                                                                                                             
9:55:52 AM                                                                                                                    
BRIAN   HOLST,    EXECUTIVE   DIRECTOR,    JUNEAU   ECONOMIC                                                                    
DEVELOPMENT COUNCIL, relayed  that he was a  graduate of the                                                                    
Juneau School District  and had served on  the Juneau School                                                                    
Board for the previous nine years.                                                                                              
Mr.  Holst addressed  the issue  of accountability.  He felt                                                                    
that  there was  a  large amount  of accountability  already                                                                    
built into  the system. He  noted the work of  site councils                                                                    
and  parent  involvement.  He recounted  that  the  previous                                                                    
evening the  Juneau School  Board had  spent two  hours with                                                                    
the    Juneau   Assembly    discussing   transparency    and                                                                    
accountability.   He   stressed  that   the   accountability                                                                    
measures  set  forth in  the  Alaska  Reads Act  would  cost                                                                    
district two to three times  more than what was provided for                                                                    
education in FY23.                                                                                                              
Mr.  Holst  discussed  outcomes of  schools  in  Alaska.  He                                                                    
referenced  a National  Assessment  of Educational  Progress                                                                    
(NAEP) report  from the  1990s that  showed that  Alaska was                                                                    
keeping up  with national  averages He  said that  the state                                                                    
was currently  below average  in math  and reading.  He said                                                                    
that  in  1996,  Alaska  ranked   1st  in  the  country  for                                                                    
percentage of  people over  25 with  a high  school diploma,                                                                    
currently the  state ranks 10.   He  said that in  1996, the                                                                    
state  was 4.3  percentage points  higher than  the national                                                                    
average for high school graduates:  currently, the state was                                                                    
4.8 percent below the national  average. The sate was ranked                                                                    
40   out of  50 states  for high  school graduates  going to                                                                    
9:59:36 AM                                                                                                                    
Mr. Holst continued his testimony.  He noted that 65 percent                                                                    
of  the  jobs  in  the  state  required  some  postsecondary                                                                    
credentials,  yet  less than  55  percent  of Alaskans  have                                                                    
those credentials  for those jobs. He  contended that Alaska                                                                    
had done  well in  education in the  past, which  meant that                                                                    
current  trends could  be improved.   He  discussed economic                                                                    
relativity and  the importance that the  state be constantly                                                                    
improving to not fall behind.  He mentioned rankings via the                                                                    
U.S. News and  World Report, which placed Alaska 49   out of                                                                    
50 in terms of the quality  of our K-12 system. The stat was                                                                    
49   in high  school graduation  and 50   in  college degree                                                                    
attainment.  He said  that services  had been  reduced every                                                                    
year, while costs had increased in every area of education.                                                                     
Mr. Holst  thought everyone could  agree that  inflation was                                                                    
eroding  the  schools.  He suggested  that  the  BSA  should                                                                    
increase by  $1,500 to meet  inflation levels. He  said that                                                                    
the state paid less than  the national average on education.                                                                    
He shared  that in  2003, there was  one Title  1 elementary                                                                    
school with 23  percent of the students  qualifying for free                                                                    
lunch;  currently there  re 6  Title  1 elementary  schools,                                                                    
with up  to 50  percent of the  student qualifying  for free                                                                    
lunch.  He stressed  that two-thirds  of  students were  not                                                                    
ready for school at the start of kindergarten.                                                                                  
10:03:15 AM                                                                                                                   
Mr.  Holst discussed  the importance  of  teachers' role  in                                                                    
school success. He  provided that Alaska was  the only state                                                                    
in which  teachers hired  after 2006  cannot earn  a pension                                                                    
and have a  fixed retirement. He lamented  that teachers are                                                                    
barely earning a living wage and cannot make ends meet.                                                                         
Mr.  Holst cited  that economic  research  on education  and                                                                    
economy.  He  referenced   economic  research  on  education                                                                    
funding  and   the  economy,  and   thought  the   data  was                                                                    
abundantly clear that Alaska should invest in education.                                                                        
Mr.  Holst cited  numerous studies  about  the link  between                                                                    
investing in education and the  future economic stability of                                                                    
Alaskans.  He   offered  to  send  annotations   of  studies                                                                    
providing economic evidence.                                                                                                    
10:07:55 AM                                                                                                                   
Mr.  Holst  continued  to  discuss  economic  research  that                                                                    
supported increased  education funding. He used  the example                                                                    
of the  state of  Massachusetts, which had  made significant                                                                    
investments in  education. It was  estimated that  for every                                                                    
dollar  of  investment  in  education  in  Massachusetts,  a                                                                    
return  of  $1.80  was  experienced  economically.  In  many                                                                    
cases, education funding closed  the achievement gap between                                                                    
low- and high-income families.                                                                                                  
Mr. Holst  discussed the PFD  and the BSA. He  reasoned that                                                                    
if the  inflation-proofing was good for  the Permanent Fund,                                                                    
it was also good for the BSA.                                                                                                   
Mr.  Holst discussed  spending for  the PFD  versus spending                                                                    
for  the BSA.  He thought  there was  no better  vehicle for                                                                    
injecting  resources   for  the  state's  economy   than  an                                                                    
increase to the BSA.                                                                                                            
10:11:47 AM                                                                                                                   
Co-Chair Olson  thought Co-Chair Stedman had  perspective in                                                                    
the inflation proofing of the Permanent Fund.                                                                                   
Co-Chair Stedman commented that  the legislature was working                                                                    
to keep  the Permanent Fund inflation  proofed. He commented                                                                    
that  he  would  be  surprised if  the  JEDC  recommended  a                                                                    
customer inflation proofing their expenditures.                                                                                 
10:12:58 AM                                                                                                                   
Co-Chair  Olson pointed  out  that the  PFD  itself was  not                                                                    
inflation proofed, only the fund.                                                                                               
Co-Chair  Merrick agreed  that the  corpus of  the fund  was                                                                    
inflation proofed and the PFD itself.                                                                                           
Mr. Holst  replied that the  effect was the  same. Inflation                                                                    
proofing   the  fund   effectively  inflation   proofed  the                                                                    
dividend in  statute. He  thought that  there were  items in                                                                    
the state  budget that were  going to be  inflation proofed,                                                                    
the BSA  should be  one of those  things. He  concluded that                                                                    
the state was  currently ranked #1 in  economic stability by                                                                    
the U.S. News  and World Report, which meant  that the state                                                                    
had  considerable   resources  and   what  was   needed  was                                                                    
leadership that  chose to use  the states   available wealth                                                                    
of resources to adequately fund K-12 education.                                                                                 
10:15:48 AM                                                                                                                   
Co-Chair Stedman thought Mr. Holst  had a unique perspective                                                                    
as  director of  the  JEDC and  as a  member  of the  school                                                                    
board.  He  mentioned the  cash  call  on  the size  of  the                                                                    
dividend. He  pondered that to  meet the request of  the BSA                                                                    
increase, some other area of  state funding would have to be                                                                    
balanced.  He   asked  for  Mr.  Holst's   thoughts  on  how                                                                    
resources should be allocated.                                                                                                  
Mr. Holst  believed that  prioritizing investing  in schools                                                                    
was the  best investment  for Alaskans  and for  the states                                                                     
economy.  He  questioned  the mindset  of  pitting  the  BSA                                                                    
against the PFD. He thought the  PFD had almost no value for                                                                    
wealthier  Alaskans  but   was  important  for  lower-income                                                                    
Alaskans. He  was not a fan  of telling people how  to spend                                                                    
money. He thought  that the impact of the PFD  had an uneven                                                                    
effect across  the board, whereas funding  for education was                                                                    
proven by  research to  improve the  lives of  all Alaskans,                                                                    
regardless of economic status.                                                                                                  
Mr. Holst considered the question of broad-based taxes.                                                                         
10:19:15 AM                                                                                                                   
Co-Chair  Stedman   asked  what  Mr.  Holst   felt  was  the                                                                    
absorption  level of  stepping up  the BSA  when considering                                                                    
the Juneau School System.                                                                                                       
Mr. Holst  suggested that  if there was  no increase  in the                                                                    
current year,  JSD would cut  40 teachers and would  face an                                                                    
approximately  $4  million  deficit. He  believed  that  the                                                                    
legislature would  fund and additional $800,  but the figure                                                                    
used for  the budget was  an increase of $440.  He continued                                                                    
that   JSD  continued   to  cut   items  including   library                                                                    
assistance,  support for  STEM  supports  at the  elementary                                                                    
level, teacher training, and  special education support. The                                                                    
district  needed an  additional  $600 added  to  the BSA  to                                                                    
repeat the offerings of the  previous year and an additional                                                                    
$1200 if improvements  were going to be made.  He cited that                                                                    
middle school  classrooms had more  than 40 kids,  which was                                                                    
not good  for the age  group. He felt  that if the  BSA were                                                                    
raised  $1500 in  FY24 the  resources would  be invested  to                                                                    
reduce class  size. He mentioned current  union negotiations                                                                    
that would be helped by increased funds.                                                                                        
Mr.  Holst recounted  that the  previous night  the district                                                                    
had discussed  a deficit  in transportation  because funding                                                                    
for transportation had  been flat for years.  He argued that                                                                    
1  grades  should not have to walk more than  a half mile to                                                                    
10:22:43 AM                                                                                                                   
Mr. Holst  contended that school districts  around the state                                                                    
would benefit  from a  substantial increase  in the  BSA and                                                                    
not just be treading water.                                                                                                     
10:23:07 AM                                                                                                                   
Senator  Olson noted  that Senator  Shower  had entered  the                                                                    
10:23:27 AM                                                                                                                   
Senator  Bishop asked  what quality  of life  aspects a  new                                                                    
business considered when moving into the state.                                                                                 
Mr. Holst answered that they wanted to see good schools.                                                                        
10:23:56 AM                                                                                                                   
JAMIE  BURGESS,  SUPERINTENDENT,  NOME PUBLIC  SCHOOLS  (via                                                                    
teleconference),  spoke   in  support   of  the   bill.  She                                                                    
recounted  that  over  the  previous  three  years  she  had                                                                    
endeavored to  have a "lean"  budget with the  assistance of                                                                    
Nome Public  Schools (NPS)  business managers.  She detailed                                                                    
that  work  had  been  done  to  assure  that  teachers  had                                                                    
reasonable  salary   increases,  and  that   schools  stayed                                                                    
maintained while  providing a variety of  academic offerings                                                                    
to  advance   students  to  the  postsecondary   level.  She                                                                    
lamented that  without an increase  to the BSA  the district                                                                    
would need to  reduce positions and resources  in key areas.                                                                    
She  stressed that  the district  could no  longer  do  more                                                                    
with less   year after year and  would now be forced  to  do                                                                    
less with less.   She shared that Nome had  prided itself on                                                                    
its rich  art community and  the loss  of choir and  band at                                                                    
the  K-12  level,  due  to  lack  of  funding,  has  been  a                                                                    
significant  blow  to  the  community.  She  said  that  the                                                                    
district anticipated the loss of  20 percent of its teaching                                                                    
force,  which  was  unprecedented.   She  added  that  young                                                                    
teachers  are  leaving,  and the  older  teachers  are  near                                                                    
10:27:33 AM                                                                                                                   
Ms. Burgess described reduction  in travel for sports teams.                                                                    
She  discussed  community  support through  bake  sales  and                                                                    
opined that the  cost for sport travel will  fall heavily on                                                                    
Ms.  Burgess discussed  the  aging  facilities in  desperate                                                                    
need  of  repair.  She said  that,  typically,  $300,000  to                                                                    
$400,000  was  transferred  from general  funds  into  Apple                                                                    
Improvement Funds each year  for major maintenance projects,                                                                    
emergencies,  and projects  that did  not qualify  for state                                                                    
funds. She noted that next  year's budget would spend nearly                                                                    
50 percent  of the  fund would  need to be  used for  a roof                                                                    
replacement on  the high school. She  described water damage                                                                    
in Nome schools, and the issue of mold in school buildings.                                                                     
Ms.  Burgess  discussed  inflationary  pressure,  which  was                                                                    
affecting  all  areas  of the  budget.  She  noted  pencils,                                                                    
markers,  paper towels,  toiled  paper,  and contracts  with                                                                    
physical  and occupational  therapists, were  all diminished                                                                    
in capacity due to lack  of resources. She stressed that the                                                                    
district  would  drain  its fund  balance  to  balance  next                                                                    
years budget, which was unsustainable into the future.                                                                          
10:30:33 AM                                                                                                                   
Ms.  Burgess  noted  that  NPS   was  in  negotiations  with                                                                    
teachers and would not be  able to offer increased salaries.                                                                    
She   discussed  increased   energy  costs,   and  increased                                                                    
property and liability insurance premiums.                                                                                      
10:31:44 AM                                                                                                                   
Ms. Burgess  continued to  discuss Nome  school achievement.                                                                    
She said  that reading on  the elementary level was  at high                                                                    
levels.  She cited  that  the  high school  had  one of  the                                                                    
highest percentages in rural  Alaska for students qualifying                                                                    
for the  Alaska Performance  Scholarship. She  asserted that                                                                    
one-time  funding  was  appreciated   but  did  not  provide                                                                    
predictability and  stability from  year to year.  She urged                                                                    
the committee to increase funding to the BSA.                                                                                   
10:32:43 AM                                                                                                                   
Co-Chair  Olson thanked  Ms. Burgess  for her  testimony. He                                                                    
referenced storms  in Western Alaska and  the effect weather                                                                    
had on buildings.                                                                                                               
10:33:08 AM                                                                                                                   
Co-Chair Stedman  wanted to hear  about the  absorption rate                                                                    
over  the  following  two  years  if  the  BSA  were  to  be                                                                    
increased. He reminded that an  increase would come from the                                                                    
PFD appropriation    either the  BSA could be  increased, or                                                                    
the 50/50 dividend could be issued  but not both.                                                                               
Ms.  Burgess  believed  that the  PFD  brought  benefits  to                                                                    
residents but thought that  education funding offered longer                                                                    
term benefits.  She acknowledged  that the dividend  was not                                                                    
needed as much by  some individuals, while education funding                                                                    
benefited  everyone.  She  suggested that  the  state  could                                                                    
consider additional  forms of  revenue to  provide resources                                                                    
for its  residents. She  appealed to the  idea of  an income                                                                    
Ms.  Burgess  thought  there  was  a  way  to  fund  schools                                                                    
adequately and equitably and provide a PFD to residents.                                                                        
10:35:41 AM                                                                                                                   
Senator Bishop  reminded that there was  an education raffle                                                                    
as part of the PFD  application, which had an endowment that                                                                    
was  constitutionally protected  and could  not be  swept by                                                                    
the legislature.                                                                                                                
10:36:31 AM                                                                                                                   
DR.  ROY  GETCHELL,  SUPERINTENDENT, HAINES  BOROUGH  SCHOOL                                                                    
DISTRICT,  relayed that  he was  the  incoming president  of                                                                    
Alaska  Superintendents Association  and the  Alaska Council                                                                    
of   School  Administrators.   He  discussed   a  PowerPoint                                                                    
presentation entitled "SENATE BILL 52  - THROUGH THE LENS OF                                                                    
THE HAINES BOROUGH SCHOOL DISTRICT," (copy on file).                                                                            
Dr.   Getchell  looked   at  slide   2,  which   listed  the                                                                    
   1. Reliable & Predictive Public Education Funding                                                                            
          The BSA must be increased to keep up with                                                                           
          inflation to provide our students the quality                                                                       
          educational opportunities that they deserve.                                                                        
   2. Reliable, Convenient & Adequate Ferry Service                                                                             
          The Alaska Marine Highway is critical to Haines                                                                     
          and our students future.                                                                                            
   3. Competitive Recruitment & Retention of Alaskan                                                                            
    Educated Teachers, Support staff, & Administrators                                                                          
          Haines students deserve  high quality educators to                                                                  
          achieve their  potential in  becoming contributing                                                                  
          members of society  and critical thinkers prepared                                                                  
          for individual success.                                                                                             
10:38:02 AM                                                                                                                   
Dr.  Getchell spoke  to slide  3, "My  Alaska Story,"  which                                                                    
showed a photograph  of a 6th grade class of  which he was a                                                                    
teacher. He  recounted that  he had  worked at  a restaurant                                                                    
and delivered  pizzas to save  the money to move  to Alaska.                                                                    
He  said when  he  landed  in Alaska  here  were over  3,000                                                                    
applicants to compete  with; so many people  wanted to teach                                                                    
in  Alaska. He  relayed his  story working  in education  in                                                                    
10:40:03 AM                                                                                                                   
Dr.  Getchell  referenced  slide   4,  "A  Once  Unthinkable                                                                    
     •  The number  of certified  teaching applications  are                                                                    
     down 90 percent when compared to 10 years ago                                                                              
     • The number of  administrator applications are down 75                                                                    
     percent when compared to 10 years ago                                                                                      
     •  Over 75  percent of  current certified  applications                                                                    
     would require a J-1 visa if hired                                                                                          
     • Less than 10 percent  of current applicants for FY 24                                                                    
     positions possess a degree from the UA system                                                                              
     • Our certified turnover rate for FY 24 is 39 percent                                                                      
     •  International recruitment  opportunities, reductions                                                                    
     in  pay, and  the elimination  of any  sort of  defined                                                                    
     benefit  have  crippled  Alaska's number  of  potential                                                                    
Dr.  Getchell noted  that the  data  on the  slide was  from                                                                    
Haines.  He  thought  it  was   important  to  hire  Alaskan                                                                    
educators.  He  referenced  the  Northwest  Arctic  Borough,                                                                    
which   had   experienced  increased   staffing   difficulty                                                                    
recruiting teachers and educators.                                                                                              
Dr. Getchell discussed a  nation-wide decrease in graduates.                                                                    
He referenced competition with international locations.                                                                         
10:44:33 AM                                                                                                                   
Dr. Getchell turned  to slide 5, "Total  First Day Vacancies                                                                    
in  AK,"   which  showed  a  line   graph  illustrating  the                                                                    
significant  increase  in  total  first  day  vacancies  for                                                                    
teachers  from 2020  to 2023.  He commented  that the  first                                                                    
week of  school was a  critical time for  community building                                                                    
in  the  classroom and  the  state  was currently  down  400                                                                    
teachers statewide.                                                                                                             
10:46:32 AM                                                                                                                   
Dr.   Getchell  considered   slide  6,   "Cost  of   Teacher                                                                    
     • IS E R Study  2017                                                                                                       
          • Every  time Alaska replaces a  teacher, it costs                                                                    
          the school district over $20,000                                                                                      
     • RAND Study  2019                                                                                                         
          • Average cost to replace a principal is $75,000                                                                      
     • Ronfeldt, Loeb, and Wyckoff  2013                                                                                        
          •  Students in  grade-levels with  higher turnover                                                                    
          score lower in  both ELA and math  and this effect                                                                    
          is particularly  strong in  schools with  more low                                                                    
          performing  and minority  students. Moreover,  the                                                                    
          results suggest that there  is a disruptive effect                                                                    
          of  turnover beyond  changing the  distribution in                                                                    
          teacher quality.                                                                                                      
     • Mid-Year Turnover                                                                                                        
Dr. Getchell  discussed the hiring of  high-quality teachers                                                                    
and  principals.  He stressed  that  schools  that had  high                                                                    
rates  of   teacher  turnover  could  not   provide  quality                                                                    
education to students.                                                                                                          
10:48:38 AM                                                                                                                   
Dr.  Getchell displayed  slide 7,  which showed  a graph  of                                                                    
Alaska  K-12 funding  that was  previously displayed  in the                                                                    
presentation by Senator Tobin. He  said that the floor for a                                                                    
BSA increase in Haines was $240.  He pointed out the loss of                                                                    
purchasing power due to inflation.                                                                                              
10:49:20 AM                                                                                                                   
Dr. Getchell highlighted slide 8,  "How BS A Flat Funding is                                                                    
affecting our schools":                                                                                                         
     • Fixed Cost Increases in Haines                                                                                           
          • Utilities  2X since FY 21                                                                                           
          • Insurance costs   Increasing 5 percent per year                                                                     
          • Transportation   Flights to  Juneau are now over                                                                    
          $400 round trip (25-minute flight)                                                                                    
          •  Fluctuating  fuel  surcharge  on  all  incoming                                                                    
          freight  that is  now 20  percent  in addition  to                                                                    
          regular freight rates                                                                                                 
          • Classroom materials    Increased 12 percent last                                                                    
          • Many commodities increased 25 percent since FY                                                                      
          • Liability Insurance Costs                                                                                           
     • 8 percent inflation in 2022                                                                                              
10:51:33 AM                                                                                                                   
Dr. Getchell looked at slide 9, "Cost of Living Examples":                                                                      
     Haines Borough School District                                                                                             
     • One Bedroom Apartment  $1250                                                                                             
     • Gallon of Milk  $8.99                                                                                                    
     • Case of Bottled Water  $ 21.00                                                                                           
     • Dozen Eggs  $6.69                                                                                                        
     • Gallon of Gasoline - $5.25                                                                                               
     • Twelve pack of Coca -Cola - $11.99                                                                                       
     • Case of Tissue - $40.00                                                                                                  
     Northwest Arctic School District                                                                                           
     • One Bedroom Apartment  $1800/month (plus utilities)                                                                      
     • Gallon of Milk  $10 - $30 (depending on region)                                                                          
     • Case of Bottled Water  $38-$50                                                                                           
     • Dozen Eggs  $9.59                                                                                                        
10:52:53 AM                                                                                                                   
Dr. Getchell addressed slide 10, "Why Fund Inside the                                                                           
     • Reliability                                                                                                              
     • Predictability                                                                                                           
     • Putting one time money into fixed costs is                                                                               
     discouraged, risky, and uncertain                                                                                          
     • Allows our School Boards to be better stewards of                                                                        
     their obligation to adopt budgets for their school                                                                         
       One time money does not meet the needs of teachers,                                                                      
     classrooms, other educators and students in the future                                                                     
Dr. Getchell said that one-time money was always                                                                                
appreciated, and that predictable and sustainable funding                                                                       
would be very helpful.                                                                                                          
10:53:49 AM                                                                                                                   
Dr. Getchell advanced to slide 11, " Implementation of                                                                          
Unfunded Mandates":                                                                                                             
     • My Administrative Assistant keeps track                                                                                  
       she has compiled a list of over 40                                                                                       
     • The Alaska Reads Act is one of the 40                                                                                    
       Implementation estimates range from                                                                                      
     $75,000 to $12,000,000 depending on the district                                                                           
     •  In Haines,  I anticipate  the  cost to  be at  least                                                                    
     $150,000  (BS A  increase  for FY24  will currently  be                                                                    
     •  Examples:  Kake:   $231,000;  Petersburg:  $170,000,                                                                    
     Sitka:  $615,000; Wrangell:  $221,000; Annette  Island:                                                                    
     $565,000;  Anchorage   $11,800,000;  Northwest  Arctic:                                                                    
   $1,849,000; LKS D: $2,023,150; Fairbanks: $3,500,000                                                                         
Dr. Getchell asserted that implementing the mandates of the                                                                     
Alaska Reads Act would cost schools significantly.                                                                              
10:54:58 AM                                                                                                                   
Co-Chair Olson pointed out that the committee meeting                                                                           
needed to end at 11am. He offered to have the next                                                                              
presenter testify during the scheduled 1pm meeting.                                                                             
10:55:32 AM                                                                                                                   
Dr. Getchell looked at slide 12, "HBSD's Strategic Plan Our                                                                     
Roadmap and Accountability Model:                                                                                               
     • Our  Mission and Vision  were developed by  a diverse                                                                    
     group of HBS D stakeholders in 2019.                                                                                       
     •  Components   of  the  strategic  plan   are  updated                                                                    
     regularly for measurable results.                                                                                          
     •  Yearly  goals are  guided  by  most recent  data  in                                                                    
     achieving our goals.                                                                                                       
     • We will do a "refresh" later this fall.                                                                                  
10:56:04 AM                                                                                                                   
Dr. Getchell showed slide 13, "Targets for Excellence:                                                                          
     1.Educational Excellence                                                                                                   
     2.Community & Family Engagement Excellence                                                                                 
     3.Organizational Excellence                                                                                                
     4.School Climate & Culture of Excellence                                                                                   
10:56:13 AM                                                                                                                   
Dr. Getchell referenced slide 14, "Educational Excellence":                                                                     
      The  Haines Borough  School  District  will deliver  a                                                                    
     rigorous  academic   curriculum  based   on  meaningful                                                                    
     learning opportunities where  students are empowered to                                                                    
     be  critical  thinkers   and  contributing  members  of                                                                    
     society.  We  do  this   through  a  rigorous  academic                                                                    
     curriculum   that  includes   fine  arts   instruction,                                                                    
     vocational education, and extracurricular activities.                                                                      
     80%  of students  in grades  K-10 will  meet or  exceed                                                                    
     grade level academic indicators  and/or show one year's                                                                    
     Implement a  robust multi-tiered support  system (MTSS)                                                                    
     that  utilizes data  gathered on  formative, summative,                                                                    
     and benchmark assessments.                                                                                                 
     100 percent of students will  graduate on time and have                                                                    
     a completed plan for a post secondary pathway.                                                                             
     Implement  a  college/career   management  system  that                                                                    
     supports  classroom and  individual planning.  Students                                                                    
     will   complete  onsite   and/or   virtual  visits   to                                                                    
     college/career  institutions, complete  required tests,                                                                    
     and participate in career-based internships.                                                                               
10:56:47 AM                                                                                                                   
Dr. Getchell turned to slide 15, "Community & Family                                                                            
Engagement Excellence:                                                                                                          
     The Haines  Borough School  District will  partner with                                                                    
     families  and abundant  community resources  to promote                                                                    
     shared values  of intellectual, social,  emotional, and                                                                    
     physical growth.                                                                                                           
     100 percent  of teachers  and parents  will participate                                                                    
     in   focused   activities   that  promote   values   of                                                                    
     intellectual, social, emotional, and physical growth.                                                                      
     The Haines Borough School District  will host and track                                                                    
     parent  participation  in teacher  conferences,  family                                                                    
     nights,  volunteer logs,  and other  parent/partnership                                                                    
     activities during the school year.                                                                                         
10:57:09 AM                                                                                                                   
Dr.   Getchell   considered    slide   16,   "Organizational                                                                    
     The  Haines  Borough  School  District  will  foster  a                                                                    
     culture  of  innovation,  respect  and  responsibility,                                                                    
     attract  and  retain  highly effective  employees,  and                                                                    
     facilitate  an  environment  of  open  and  transparent                                                                    
     80  percent  of  stakeholders  will  give  a  score  of                                                                    
     "Satisfactory"   or   above   on   an   end   of   year                                                                    
     communication assessment.                                                                                                  
     Review  of communication  protocols, implementation  of                                                                    
     communication  management  systems   (BLOOMZ),  and  an                                                                    
     upgrade   of    current   tech    platforms   (website,                                                                    
     Powerschool, etc.).                                                                                                        
     The  HBSD will  retain 90  percent of  employees on  an                                                                    
     annual basis.                                                                                                              
     Fostering    positive    staff   relationships    while                                                                    
     strengthening  recruitment,  mentoring, and  onboarding                                                                    
     for new hires and  the continued professional growth of                                                                    
     all experienced staff.                                                                                                     
10:57:24 AM                                                                                                                   
Dr. Getchell turned to slide 17, School Climate & Culture                                                                       
of Excellence:                                                                                                                  
     The  Haines  Borough  School District  will  ensure  an                                                                    
     inclusive  and  healthy   school  culture  that  honors                                                                    
     diversity  and  is  founded  on  safety,  respect,  and                                                                    
     Given  yearly, student  well-being survey  results will                                                                    
     increase by 5 percent in  every category as compared to                                                                    
     baseline data.                                                                                                             
     Through  a  comprehensive   guidance  program  that  is                                                                    
     supported by  all staff. This will  include the support                                                                    
     of   community  partnerships,   state  resources,   and                                                                    
     student driven school experiences.                                                                                         
10:57:30 AM                                                                                                                   
Dr. Getchell showed slide 18 "Key Highlights from HBSD:                                                                         
      Multiple school safety  measures have been implemented                                                                    
     this year (anonymous  reporting system, lockdown alert,                                                                    
     police/fire   MOA,   access   control   system,   ALICE                                                                    
      Necessary  capital improvements  are  being funded  by                                                                    
     the Haines Borough                                                                                                         
      Average age of school buildings  in Alaska is 42 years                                                                    
     with 66 buildings over 60 years old                                                                                        
      Our  budget is  balanced  in FY  23  with a  projected                                                                    
     shortfall of $290,000 in FY 24                                                                                             
      ARP  money still  available for  a  3rdyear of  mental                                                                    
     health  support in  FY 24  (ARP money  was not  used to                                                                    
     supplement our general fund)                                                                                               
      Middle  and elementary  school activity  programs were                                                                    
     implemented in 2021 and 2022.                                                                                              
      Our  attendance  rate  increased from  89  percent  in                                                                    
     2017/18 to 97 percent 2021/22.                                                                                             
10:58:53 AM                                                                                                                   
Senator   Bishop   complimented    Dr.   Getchell   on   his                                                                    
Co-Chair Olson requested that the bill sponsor to make                                                                          
final comments.                                                                                                                 
Senator Tobin thanked the committee for hearing the bill.                                                                       
She looked forward to the public testimony scheduled for                                                                        
the 1pm meeting.                                                                                                                
SB 52 was HEARD and HELD in committee for further                                                                               
11:00:32 AM                                                                                                                   
The meeting was adjourned at 11:00 a.m.                                                                                         

Document Name Date/Time Subjects
SB 52 Explanation of Changes Version A to Version S.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Research - ISER K-12 Spending Update.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Sponsor Statement.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Supporting Document - ACSA 2023 Joint Position Statements.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Testimony - Anchorage School Board.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Testimony - Received as of 03.16.2023.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Testimony - Seldovia Resolution.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Version S Sectional Analysis.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 22-23-03 CSD Increase to the Base Student Allocation Resolution 032223.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Support Anchorage School District backup - Alaska EB Report 2023 Final (1).pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Susan B. English PAC Legislative Letter of Request to Support BSA.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Support Nickell.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Support LaRoe.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Support Johnson.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52-HB 65 Support Vano.pdf SFIN 4/13/2023 9:00:00 AM
HB 65
SB 52
SB 52 BSA Increase Support Schaeffer.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Support Veerman.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Research - Legislative Finance Memo on BSA and Inflation.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Research - Boosting Educational Attainment and Adult Earnings - Education Next.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Research - AEFP School Funding Report.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Research - NBER Working Paper 22011.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Research - Review of Alaska School Funding Program July 2015.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Presentation - Sen. Tobin 041323.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Presentation - Roy Getchell.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Presentation - 3rd corrected version Sen. Tobin 04.13.2023.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 EED SSA 032323.pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 Fiscal Note EED-SSA 03.23.2023 (002).pdf SFIN 4/13/2023 9:00:00 AM
SB 52
SB 52 EED PEF 022223.pdf SFIN 4/13/2023 9:00:00 AM
SB 52