Legislature(2005 - 2006)SENATE FINANCE 532
03/09/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB1 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 1 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 63 | ||
| = | HB 64 | ||
MINUTES
SENATE FINANCE COMMITTEE
March 9, 2005
9:06 a.m.
CALL TO ORDER
Co-Chair Wilken convened the meeting at approximately 9:06:43 AM.
PRESENT
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Bert Stedman
Senator Donny Olson
Also Attending: REPRESENTATIVE MIKE HAWKER; SENATOR BEN STEVENS;
REPRESENTATIVE CARL GATTO; REPRESENTATIVE MARK NEUMAN; NONA WILSON,
Legislative Liaison, Department of Transportation and Public
Facilities; LAURIE ROBERTS SCANDLING, Principal/Teacher, Yaakoosge
Daakahidi Alternative High School; public testimony on HB 1 was
presented in the order reflected in the minutes.
Attending via Teleconference: From Homer: STEVE TAROLA, Chair,
Alaska Board of Public Accountancy; teleconferenced public
testimony on HB 1 was presented in the order reflected in the
minutes.
SUMMARY INFORMATION
HB 64-EXTEND BOARD OF PUBLIC ACCOUNTANCY
The Committee heard from the bill's sponsor and reported the bill
from Committee.
SB 63-USE SEAT BELT ROAD SIGNS
The Committee heard from the bill's sponsor and the Department of
Transportation and Public Facilities. The bill was held in
Committee.
HB 1-INCREASE AMT OF BASE STUDENT ALLOCATION
The Committee heard from the sponsor and took public testimony. The
bill was held in Committee.
Co-Chair Wilken acknowledged the presence of the government class
from the City and Borough of Juneau Yaakoosge Daakahidi Alternative
High School.
LAURIE ROBERTS SCANDLING, Principal/Teacher, Yaakoosge Daakahidi
Alternative High School explained that students were in attendance
"to see government in action".
HOUSE BILL NO. 64
"An Act extending the termination date for the Board of Public
Accountancy; and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken reminded that the bill had been held in order to
provide time for further review.
REPRESENTATIVE MIKE HAWKER, the bill's sponsor, informed the
Committee that the President of the Alaska Board of Public
Accountancy was available for questions.
STEVE TAROLA, Chair, Alaska Board of Public Accountancy, testified
via teleconference from Homer, urged the Committee to support the
legislation and report it from Committee.
Senator Bunde moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, HB 64 was REPORTED from Committee with
zero Fiscal Note #1, dated January 21, 2005, from the Department of
Commerce, Community and Economic Development.
CS FOR SENATE BILL NO. 63(TRA)
"An Act relating to road signs encouraging the use of safety
belts."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken noted that the original version of the bill,
Version 24-LS0363\G, is before the Committee for consideration.
SENATOR BEN STEVENS, the bill's sponsor, expressed that this
"simple bill" was developed in response to a constituent's desire
to erect a memorial sign near the site of an automobile accident in
which a family member's life had been lost. While the Department of
Transportation and Public Facilities (DOT) has a Memorial Sign
Program, its funding is limited to "Don't Drink and Drive" and
"Please Drive Safely" signs, and would not accommodate the
constituent's desire to erect a sign stating "Buckle Up for
Safety". This bill would expand the program to accommodate such
wording and allow signs to be placed in the State's right-of-way,
"near the location of a traffic fatality that occurred as the
result of not wearing a seatbelt".
Co-Chair Wilken understood that the family member whose life was
lost in the aforementioned traffic accident was a young man named
Nathan Kampen.
Senator B. Stevens affirmed and noted that he, rather than the
family, is requesting that the program be referred to as the Nathan
Kampen Act.
Co-Chair Wilken clarified that although there is a Senate
Transportation Committee committee substitute, the sponsor is
requesting that the original version of the bill, Version 24-
LS0363\G, be considered. The difference between the two versions is
that the Senate Transportation Committee committee substitute
removed language in Section 1, page one, line five, that reads as
follows.
SHORT TITLE. This Act shall be known as the Nathan Kampen Act.
Senator B. Stevens affirmed. He noted that although this language
was removed in the Senate Transportation committee substitute due
to policy issue concerns about Legislative intent and uncodified
law, that committee has advised that they would not take issue were
this Committee to reinstate that language.
Senator Olson observed that the bill is accompanied by a zero
fiscal note even thought each sign would cost approximately $500.
In addition, he inquired to the process through which a sign would
be erected.
Senator B. Stevens deferred to DOT to respond to the fiscal note
question. The memorial signs would be "by request" to the
Department, which would determine whether a sign could be placed in
the right of way "without obstructing either traffic or other types
of equipment and not to jeopardize the safety of the flow of
traffic".
Senator Olson asked whether regarding the number of signs that
might be placed and how they would be financed.
NONA WILSON, Legislative Liaison, Department of Transportation and
Public Facilities, explained that the application process for
requesting a sign would allow for a 30-day Department review period
in which the Department would determine whether a sign could be
placed at the requested location. Were the request approved, the
Department would place the sign in an appropriate place near or at
the location of the accident. While the number of signs that might
be requested is unknown, funding for the signs would be provided
through the existing Memorial Sign Program.
Senator Stedman pointed out that the Transportation Committee
committee substitute also removed the words "at or near" from the
bill in Section 2, page one, line eight. Continuing, he shared that
the Department has erected memorials and safety reminder signs at
dangerous intersections in his community. That signage has not
generated negative public feedback. He also noted that, in his
experience, it has been difficult at times to get the Department of
Transportation and Public Facilities to make improvements to
dangerous intersections.
Co-Chair Wilken noted that another difference between the versions
is that the Senate Transportation Committee committee substitute
included the language "at or near the site" in Section 1, page one,
line five as compared to language in the original version that
specifies "at the site".
Senator B. Stevens characterized the language differences as a
"grammatical choice" as the bill drafter's usage of the words "at
the site" would be defined to allow the signs to be erected at or
near the site rather than the more specific "at the exact location
of." The objective is to provide the Department "the discretion" to
erect the signs where deemed fit.
Co-Chair Wilken stated that the bill would be held to reconcile the
differences between the two versions.
Senator Stedman opined that the Department should "locate the signs
as close to the proximity of the accident as possible", as this
would be more meaningful.
Co-Chair Wilken ordered the bill HELD in Committee.
CS FOR HOUSE BILL NO. 1(HES)
"An Act relating to the base student allocation used in the
formula for state funding of public education; and providing
for an effective date."
9:21:50 AM
This was the first hearing for this bill in the Senate Finance
Committee.
REPRESENTATIVE CARL GATTO, the bill's sponsor, voiced appreciation
for the fact that such "an important bill" as this has advanced so
swiftly through the committee hearing process. This bill would
increase to the FY 06 base student allocation (BSA) by $70,100,000
over the FY 05 allocation.
Senator Bunde inquired to the justification for this proposed BSA
amount as compared to the amounts proposed in Governor Frank
Murkowski's budget or by education organizations.
Representative Gatto stated that the traditional process of
contacting each school district was conducted in the development of
this BSA proposal. Questions regarding what BSA amount would be
deemed appropriate were asked in order to determine whether a
"certain percent increase" might be agreeable throughout the
districts. Consistency in this regard would provide comfort that
the amount of money being requested is not being "exaggerated". The
Governor's proposal was for a $61,100,000 increase and the
Education Committee recommended a $65,400,000 increase. He had
questioned the adequacy of these amounts relative to fact that the
schools had requested more. The House of Representatives Finance
Committee supported the $70,100,000 amount recommended by the House
Health, Education & Social Services Committee.
Senator Bunde opined therefore that the BSA being requested is,
"like we've done in the past: a combination of our best guesses and
our wish lists."
Representative Gatto agreed. "We can say without hesitation how
much money we would have to allocate to meet somebody's wish, but
the wishes vary so much" as exampled by the $152,000,000 increase
proposed by the National Education Association (NEA), the
$111,000,000 proposed by Alaska Kids Count!, the $85,800,000
proposed by the Alaska Association of School Boards (AASB), the
$70,100,000 amount proposed in this legislation, and the
$61,100,000 increase proposed by the Governor. "If we all agreed,
that would be wonderful, but we can't, we use different numbers".
The amount provided for education is balanced by other factors in
addition to the BSA.
Senator Bunde pointed out that the BSA money would fund a variety
of education needs. To that point, he asked how much of the
proposed amount "would actually go to the classroom".
Representative Gatto replied that of the $70,100,000 amount, $38
million would be provided to the Public Employees Retirement System
and the Teachers Retirement System (PERS/TRS).
Senator Bunde declared therefore, that $38 million should be
removed from the equation; as the focus should be on the amount
provided to the classroom. State law requires that the maximum
amount of money be provided to the classroom and the minimum amount
be provided for administration. Because a number of school
districts are unable to accomplish this, the amount being provided
to classrooms "gets ratcheted down even more".
Representative Gatto agreed. The Mat-Su School District allocates
90-percent of its BSA to the classroom; however, small districts
might only be able to allocate 65-percent to the classroom due to
higher operating costs experienced in smaller communities. This
might be "the reason that the State allocates more money to Rural
districts than to urban districts". Efforts are being exerted to
reach the correct number.
Senator Bunde commented "that many demands" are placed on the
State's budget. The windfall the State is experiencing as a result
of increased North Slope crude oil market prices "does not really
exist" due to the fact that the State has a six billion dollar
PERS/TRS debt and "owes" the Constitutional Budget Reserve (CBR)
account approximately five billion dollars. The State has "huge
debts, many demands, many interests, many needs, many wants". He
asked the total K-12 education funding being proposed for FY 06.
Representative Gatto responded that after subtracting the $38
million PERS/TRS obligation, this legislation would provide a $32
million increase to education over FY 05.
Senator Bunde clarified that the question pertains to the total
education budget proposed for FY 06.
Co-Chair Wilken stated that the total FY 06 education funding would
equate to $854 million.
Senator Bunde stated that other than the Permanent Fund Dividend
program, education is the largest component funded by State
government. He asked whether a funding mechanism for the $854
million has been identified.
Representative Gatto replied that this is the reason there is a
general fund. Such things as resource development revenues would
continue to fund education into the future. He asked whether
Senator Bunde is anticipating that, at some point, such funding
would be unavailable.
Senator Bunde responded that he was "suggesting" that we have a
finite budget and that … as the demands and the population"
continue to grow, reductions to other programs would be required in
order to fund education. He requested that school districts convey
which other programs should be reduced in order to fund education
or that they "join" the Legislature in promoting access to the
earnings of the Permanent Fund in order to provide new funds to
support State services. He voiced being "frustrated" with school
districts that "demand money without being willing to be part of
the solution". He becomes "extremely frustrated when there are some
school districts that make no local contribution" and furthermore,
of those school districts that make a local contribution, only four
contribute "100 percent of what they could pay". His own
community's school "district could balance their budget tomorrow if
they just paid 100 percent of what they're allowed to pay".
Senator Stedman commented that the proposed BSA is a 7.5 percent
increase over the FY 05 BSA allocation and the FY 05 BSA was a 9.6
percent increase over FY 04. This is a two-year total of
approximately 18-percent. While he supported the momentum that is
underway to increase education funding, he opined that communities
should share in this responsibility so that "the burden" is not
entirely shifted to the State.
Co-Chair Wilken asked that those presenting public testimony on the
bill limit their remarks to no more than three minutes in order to
accommodate the 37 individuals who have signed up to testify.
PEGGY COWAN, Superintendent, Juneau School District, testified via
teleconference from an offnet site and expressed that "education is
the best way to contribute" to the future of the State. The City &
Borough of Juneau {CBJ) "prioritizes education" as is reflected by
the fact that the community traditionally funds education to the
allowable State limit. Property taxes were recently increased in
order to fund to the new limit adopted by the State. "That increase
stopped devastating cuts but it did not provide resources to do
more". The District continues to reallocate resources in order to
provide the best education opportunities it can. Even at the
proposed $4,919 BSA, the District would be forced to reduce its FY
06 budget by $300,000. This reduction might affect secondary
counseling, textbook budgets, buses, or custodial services. The
local Community Budget Advisory Committee recommended a $5,433 BSA,
and the Juneau School Board requested "a more modest … $5,120 to
eliminate cuts and to improve student achievement" in the
community. "The future of the State is in our students and the
future of our students depends on public education". She urged the
Committee to increase the BSA level being proposed.
9:34:16 AM
Co-Chair Wilken noted that people are encouraged to submit written
comments to the Committee regarding HB 1.
BILL BJORK, President, NEA Alaska, testified via teleconference
from Anchorage and summarized his written testimony [copy on file]
that reads as follows.
Good Morning Co-Chair Wilken, Co-Chair Green and members of
the Senate Finance Committee. For the record my name is Bill
Bjork and I serve as President for the more than 12,500
members of NEA-Alaska.
To begin, let me say a hearty thank you and acknowledge the
committee's efforts last year in providing our schools with
funds to cover inflation, pay for the increases in the
TRS/PERS contributions and $27 million for instructional
programs. The entire $82 million was appreciated as it avoided
the vast majority of proposed cuts to education in FY '05.
Last year under a fragile budget situation, when there was an
expected draw on the Constitutional Budget Reserve (CBR) you
still found the courage to make a historic increase to K-12
education.
I also applaud the committee for allowing testimony from
across Alaska to determine the needs of K-12 education across
Alaska and the level of state funding to meet those needs. I
am not going to spend a lot of time describing the funding
needs. I will leave that to the parents, teachers, school
employees, administrators and citizens, who have ably
described those needs to other legislative bodies to date. Let
it suffice to say that CSHB 1(HESS) with a Base Student
Allocation (BSA) of $4,919 DOES NOT meet the needs of a single
school district in Alaska.
As a matter of fact the statements by legislators to date have
all acknowledged that $4,919 IS NOT ADEQUATE and does not meet
the needs of our schools for FY '06. It does cover the costs
of the increase in TRS/PERS contributions. It does cover the
cost of inflation. It does provide $9 million for the
classroom. It does not avoid the PINK SLIPS being issued,
which will result in the loss of gifted, young teachers to our
classrooms. Thus, it does simply let us know early this year
how bad the pain is going to be.
Rather than talking about the needs of our schools, I will
take the time to talk about the means to adequately fund our
schools. To date the primary reason provided by legislators as
to why CSHB 1 (HESS) is less than last year's efforts is that
there is no revenue source. Such rationale bewilders me. It
makes no sense to me that in a year in which will have a
surplus of over $300 million and will not draw a penny from
the CBR, we are saying we cannot do as well as we did last
year when, in March, we were expecting to have at least a $150
million draw on the CBR.
As Sen. Wilken has stated many times, every other state in the
nation would be happy to have our "problem." We are the
richest state in the nation. A more accurate statement might
be that there is no political will to utilize the revenue
resources we do have.
As a matter of fact several proposals for revenue sources are
already in bill form and before this legislature. SB 88 and HB
143 provide the opportunity to draw from the CBR and the
Earnings Reserve Account (ERA), which total over $4.2 billion.
To add an additional $50 million to CSHB 1(HESS) would only
require a little over 1% of these reserves. Another option is
the POMV approach contained in HJR 11 and SJR 8. This approach
could generate monies far in excess of the $78 million
additional funds needed to reach NEA-Alaska's BSA
recommendation of $5,315. A third option is to use a portion
of the FY '05 windfall funds. With Alaska North Slope crude a
mere six cents from $50.00 per barrel on March 7, the surplus
is conservatively estimated at $300 million with no draw from
the CBR.
You are the experts as to the finances of the state and I am
sure know of many other options available to establish a long-
term fiscal plan for Alaska, which contains a funding solution
to meet Alaska's constitutional mandate to K-12.
On behalf of 133,000 students and 12,500 teachers and
education support professionals I implore you to look at the
healthy financial situation and make a real commitment to
address adequate funding in this budget. NEA-Alaska is
recommending a BSA number of $5,315. This level of funding
would put about $85 million into the classroom after meeting
PERS/TRS and inflation.
Thank you for your time today and I would be happy to attempt
to answer any questions.
TIM STEELE, President, Anchorage School Board, testified via
teleconference from Anchorage and stated that the BSA amount
proposed in HB 1 is inadequate. The Board discussed this issue and
determined that for status quo funding, the District's breakeven
point would be $5,027 per student. The District's budget currently
reflects reductions in teachers, administrators, staff positions
and supplies. The District has submitted a Resolution that requests
a FY 06 BSA amount of $5,120. This amount would allow for growth,
some reversal in this year's reductions, would allow for an
investment in student data systems, textbooks, and computers as
well as a reduction in classroom student numbers. He asked the
Committee to reconsider the BSA being proposed in this legislation.
A BSA of $5,120 would adequately fund the Anchorage School District
and most districts in the State.
Senator Bunde stated that of the 34 Districts that provide local
funding support for education, Juneau is one of four that provides
100-percent of the local funds allowable under State law. He asked
Mr. Steele whether he "would support a resolution asking all local
school districts to fund up to 100-percent of what they are allowed
to fund under State law". This would generate approximately $50
million dollars.
Mr. Steele responded that, while the Anchorage School Board has not
developed a formal position in this regard, he considered it
appropriate that communities fund what they could. The Municipality
of Anchorage provides funds up to its local allowable limit. "The
interpretation of the State cap as being where every local
government ought to fund, is wrong. That cap is there to implement
State law to minimize disparity between the haves and the have-nots
in this State". Were everyone required to fund to the maximum, it
would result in "maximizing the disparity between the haves and the
have-nots". That would be inappropriate.
Co-Chair Wilken communicated that while this is a good discussion,
it must continue at another time; attention should focus on the
bill at hand.
CARL ROSE, Executive Director, Association of Alaska School Boards
(AASB) testified in Juneau and commented that while much discussion
has occurred on education funding, "the Senate has not been engaged
in much of the active discussion". He referenced the "Base Student
Allocation 1999-2007" chart that was included in the material
titled "Statement by the Association of Alaska School Boards on
Foundation Formula Funding" [copy on file] dated February 8, 2005
that he had presented to the House Special Committee on Education.
The chart reflects that the BSA funding was relatively flat from
1999 through 2003. The $159 increase in FY 04 was the first sizable
increase. The FY 05 increase was "considerable". He stressed that
the recent upward trend was not the result of "guesswork," but was
rather the result of efforts exerted to recover from years of flat
funding. However, the inflation-proofing factor included in the FY
05 budget was inappropriate as education entities were not polled
in FY 05. Education funding in FY 05 was just beginning to recover
and the application of the three-year average of the Anchorage
Consumer Price Index (CPI) "to a figure that is not whole" was
inappropriate. This discussion is approaching its last stages, and
were the proposed $70,100,000 BSA funding level not increased by
March 15, 2005, layoff notices would be forthcoming. This would
"curtail opportunities" for students. The Association is requesting
a BSA amount of $4,995 in FY 06. This would be an increase of $23
million over the Governor's proposed budget. He reminded that while
the Governor's FY 04 budget proposal would have resulted in a $40
million reduction to education, education funding was increased by
$159 per student. The FY 05 budget specified that education would
be funded on a hold-harmless level to FY 04 and a total of $82
million was provided: $36 million of that provided for PERS/TRS
obligations and $46 million was provided for operating and
instructional expenses. The $4,995 BSA requested by the Association
would total $85 million: $38 million for PERS/TRS and $47 million
to support operation and instruction. The incline reflected on the
aforementioned chart reflects these funding levels. The challenge
would continue in FY 07 and the issue of re-occurring revenue is
one that must be addressed. He "challenged the Senate" to improve
the BSA amount.
Senator Bunde noted that people living in Rural Education
Attendance Areas (REAA) have communicated that while "they would
like to contribute something to their schools", there is no
mechanism established through which to support this endeavor. He
asked how AASB would view legislation that would establish such a
mechanism. In addition, he noted, "that it is difficult to ask
those communities that do make local contributions to continue" to
do so when there are communities that choose not to.
Mr. Rose commented that this question would relate to SB 112-TAX ON
REAA RESIDENTS. He shared that many residents of Rural areas view
the Legislature as acting as the "oversight assembly for the
unorganized borough". They "have asked to be taxed and not to be
mandatorially boroughed". While AASB does not have a formal
position on this matter, there is rising concern among members of
AASB who provide local contributions about not addressing the
issues of consolidation and mandatorially boroughing, as mechanisms
through which to get people to contribute. People would prefer to
be taxed as opposed to being forced "to have another level of
government". "There is a growing awareness" that the organized
boroughs and municipalities do contribute and "there is some
concern about how do we deal with this in unorganized areas".
Co-Chair Wilken asked that this discussion to held for another
time, as it addresses a separate issue.
LAURI ROBERTS SCANDLING, Principal, City & Borough of Juneau
Yaakoosge Daakahidi Alternative High School, testified in Juneau
and shared that she was born and raised in Alaska, and worked for
25 years in both the public and private sector before becoming an
educator. The alternative high school serves approximately 100
students who have dropped out of school and are at least 16-years
of age. The proposed $4,919 BSA would incur a $300,000 reduction to
the Juneau School District. She reviewed the negative consequences
that reduction would have on the alternative high school program,
and in conclusion, stated that the State's Constitution requires
that students get a free public education and absent the
appropriate funding, students on the program's wait list would not
be delivered this promise.
Ms. Scandling remarked that the State has "$30 billion in the bank"
and when the Permanent Fund was established, "the dividend program
was not even in the conversation", and now there is discussion that
a portion of the earnings of the Permanent Fund might be utilized
to support efforts to develop a gas pipeline. She voiced that she
would be willing to pay an income tax.
PATTY PICHA, Fairbanks Council of Parent Teacher Association (PTA),
testified via teleconference from Fairbanks, and stressed that
annual progress of education could not be accomplished without
establishing "the resources to accomplish that end". She voiced
support for a BSA amount of $5,120. Current needs of the North Star
School District include improving technology and teacher training
in that regard, and smaller class sizes. [NOTE: Due to
telecommunications difficulties, the testifier was disconnected.
The telecommunications problem was corrected and her testimony was
continued later in the hearing.]
DR. DONNA PETERSON, Superintendent, Kenai Peninsula Borough School
District, testified via teleconference from Kenai and stated that
the BSA proposed in HB 1 would allow the school to pay its fixed
obligations such as increased fuel expenses as well as the
retirement obligations for current employees. However, due to
previous years' funding shortfalls, the district had to eliminate
70 staffing positions over the past three years. While no further
staff reductions might occur at the proposed BSA level, the
District would be unable to decrease large class sizes or replace
art, vocational, music, physical education, and other programs that
were previously cut. "The amount proposed in HB 1 simply won't do
it". Course offerings have been downsized for approximately five
years despite District efforts to operate "smarter and more
efficiently" through such means as shared services and
administration. Such things as nursing, counseling, and other
support staff have been downsized and schools have been closed.
While State graduation requirements have increased, classrooms have
suffered due to a lack of textbooks, desks, and "a rich array of
opportunities traditionally associated with schools". Students have
had to pay quite "a price" due to the lack of investment.
Discussions regarding the cost differential study have been ongoing
for six years; the District has followed the rules and funded to
the cap. Legislators have told them "to be patient …. and to wait."
The Statutory requirements adopted in SB 36 required the cost
differential review: "it's late, but it's right. There's no other
district in this State as under-funded as the Kenai Peninsula
Borough". The 44 schools on the Kenai Peninsula "need immediate and
substantial financial help well beyond" what is proposed in HB 1.
"The bleeding and hemorrhaging of the District can no longer be
contained by the band-aide fixes being applied in the area of
funding". She asked why the 9,500 students in the District are
"less valuable" than students in other areas of the State.
REPRESENTATIVE MARK NEUMAN, Member, House of Representatives
Special Committee on Education, observed that it must be recognized
that further increases in the BSA funding might "cripple" the
State's ability to address other education funding needs such as
early funding for education, special allocations for schools,
deferred maintenance, and school construction bond package
proposals in addition to addressing the recently revised district
cost factors.
MARGARET GILMAN, Parent and School Board Member, Kenai Peninsula
School Board, testified via teleconference from Kenai and stated
that she "took offense" to the use of the term "wish list" to
characterize districts requests. On the contrary, essential needs
include the hiring of more teachers so that class sizes could be
reduced. The Kenai Peninsula Borough School District's request for
a BSA of $5,200 is higher than other school districts' requests
because the District is not being funded equability, according to
the Area Cost Study. As a Board member she has lobbied the
Legislature on behalf of the needs of students, and in response to
the requests to adequately fund the Kenai District, they were told
"to be patient and to wait for the Area Cost Study to be
completed". Reports conducted as far back as 1984 reflect that the
District is under-funded. Now that the Area Cost Study is
completed, the "patience is over". "The students in the Kenai
Peninsula have been losing ground rapidly" and have missed
opportunities in "instruction, exploration, and care" due to
inadequate funding that has resulted in overcrowded classrooms,
course offerings limited to core classes, un-staffed libraries, and
reduced administration and nursing positions. She implored the
Committee to fund the Area Cost Study, which would provide an
equitable education for all of Alaska students and to fund the BSA
at an adequate level.
Ms. Picah continued her earlier testimony by stressing that Alaska,
being resource rich and strategically located, attracts a variety
of advanced technology to the State. Please provide students the
opportunity to compete for those jobs by offering them a quality
education. "Please continue to explore funding options through
which to support the state's greatest resource… its children".
SUE HULL, Member, Fairbanks School Board, testified via
teleconference from Fairbanks, and asked the Committee to support a
BSA of a minimum of $4,995 per student and to continue the upward
funding trend referenced by Mr. Rose of AASB. Things that have
impacted student learning include: outdated math books which have
contributed to the district's math testing scores to be below those
of other schools; large core class sizes; and budget restraints
that are not allowing the district to address its high drop out
rates. Even thought the State has competing funding challenges, it
should be recognized that the State "is in an enviable position in
terms of options" that are unavailable to other states. A BSA of
$4,995 per student would assist in getting schools back on track.
NORM WOOTEN, Representative, Kodiak Island Borough School District
Board of Education, testified via teleconference from Kodiak and
urged support for a BSA of $4,995 per student. This level would
allow the District to maintain its current program levels. The
Borough has been contributing to the allowable State limit. He
invited the Members to visit the District to review how the money
is being spent.
DAVE JONES, Finance Director, Kodiak Island Borough School District
(KIBSD), testified via teleconference from Kodiak and voiced
appreciation for last year's funding level as it allowed teachers
to concentrate on teaching kids rather than worrying about loosing
their jobs. The District's largest expenses are fuel and health
insurance obligations. While the District has been contributing to
the allowable State limit, the proposed higher limit would allow
the Borough to contribute an additional $500,000. However, the
Borough does not have that amount of money available. Therefore, a
BSA of $4,995 would allow the District to continue its current
program this year and provide time to further address means through
which to fund to the new limit.
KATIE GAVENUS, Senior, Homer High School, testified via
teleconference from Homer, and spoke to "the irony of having this
meeting during the school day" when those affected are unable to
attend. During her 12-years of education in Homer, she has "been
blessed with having many amazing teachers and staff" to work with.
However, budget reductions have negatively affected the education
offerings on the Kenai Peninsula, and she wondered how her high
school education would have differed had adequate funding been
available. The differences might have included a fulltime language
teacher or nurse, lab tables in the advanced science classes, an
array of elective courses, or an adequate number of counselors,
more custodians, and adequately funded extracurricular activities.
These "basic needs have not been met" even though the Borough funds
education to the allowable local limit. She "feels robbed" of
receiving a "quality well-rounded education". While "it is too
late" for her, actions to provide adequate and equitable funding to
districts should be taken that would benefit younger students. This
is "a simple request, not a wish list".
GINNY ESPENSHADE, Parent, testified via teleconference from Homer
and urged for adequate and equitable funding of the BSA. The
recently completed Area Cost Study provides evidence that the Homer
School District "and others has been consistently and seriously
shortchanged year after year". Education funding must be addressed
now. Raising the BSA and phasing in cost differentials would be
good steps. The Alaska Constitution stated that all persons are
equal and entitled to equal education opportunities. The
Legislature is required to establish and maintain a public
education system for all students in the State. She referenced
several education lawsuits to that point. She also noted that Homer
is one of four communities in the State that provides the maximum
local contribution to education, yet the District "is the one most
shortchanged by your cost differential system".
10:16:28 AM
RICK SMERIGLIO, Resident of Moose Pass, testified via
teleconference from Seward and voiced being worried that the
State's quality of education has been declining. Local civic groups
were recently required to raise funds to provide new math and
physics books and computer software for the schools. Funding for
such items should be provided, as these items should not be viewed
as "extras". Education funding decisions should be non-partisan and
the focus should be on increasing overall funding rather than
focusing on "non-productive squabbles" about which communities are
or are not providing adequate local contributions or cost
differentials. A seven-percent increase is inadequate because the
State is still making up "for decades of decline". Student/teacher
ratios are increasing. The revenues generated by the escalating
price of North Slope oil could be used to increase school funding.
Public money is always tight and there are always competing
priorities; but public education should be the highest priority.
10:18:55 AM
SANDY WASSILIE, Vice President, Kenai Peninsula Borough School
Board, testified via teleconference from Seward and voiced
appreciation for the Members' attention to providing "equitable,
adequate, and early funding for education. Ideally it should be in
that order". Cost differentials for her area have led to serious
inadequacies of funding; a BSA of $4,919 would be helpful but
inadequate "to meet education mandates and achievement gaps" as
there are too few teachers and course offerings. She urged that the
BSA be increased to $5,200 based on the current Area Cost
Differential. The recently completed Area Cost Differential update
is encouraging as it does take into account the operating costs
experienced in Rural areas. Adequate education funding should not
be viewed as a cost, but as an investment. Students should be being
prepared now for any natural resource development employment
opportunities that might be forthcoming.
SAMMY CRAWFORD, President, Kenai Peninsula Borough School Board,
testified via teleconference from Kenai and stressed that the
proposed funding level is inadequate and would result in increased
class sizes, curriculum offering and textbook reductions, and
further reductions in teacher and administrative staff positions.
Vocational, music, arts and other programs have already been
reduced. She reviewed administrative staff reductions that have
already occurred. The local borough has consistently funded to the
maximum allowable limit. School funding is carefully monitored and
while stipends are paid, such things as travel are not. People are
leaving the district as they are feeling "helpless and hopeless
about the quality of our schools". She urged that the BSA be
increased and that consideration be given to the Area Cost
differentials.
PETE SWANSON, Principal, McNeil Canyon Elementary School in Homer,
testified in Juneau and spoke to his concern about the percent of
the BSA that would be provided to the classroom. Teaching positions
have been reduced from seven to five at his school, and he has
watched the staff "continue to do with less". This school and two
other schools in the State were selected as 2004 national Blue
Ribbon Schools; however it is doubtful that the school would be
able to repeat that performance. He reviewed his administrative
history and noted that due to funding reductions he also teaches
classes. An increase in the BSA would allow schools to provide
programs that are needed.
LESLIE CAMPBELL, Principal, Anne Wein Elementary School in
Fairbanks and President-Elect of the Fairbanks Principals'
Association, testified in Juneau and shared that in her 28 years of
being an educator in the State, she has watched school funding "ebb
and flow".
10:29:04 AM
Ms. Campbell voiced concern about the overall funding process;
specifically that sustainability is an issue, as no long-range
plans are being developed to adequately fund education needs in the
future. "There is a great disparity of need" between districts. Her
Title 1 School has approximately 414 kids, and when she first
became principal, the student population spoke 19 different
languages. The school is "courageously" meeting the guidelines of
the federal No Child Left Behind Act, and has made adequate yearly
progress for the past two years while doing it with less. Math and
replacing textbooks that are falling apart are the school's focus
this year. 25-percent of the student population is Special
Education and a high percentage of students have limited English
proficiency. The school has an excellent staff but staff retention
is a concern. Increasing student/teacher ratios is also a concern.
Corporation managers develop long-range plans and maintaining
sustainability should be the Legislature's challenge. A BSA of
$4,919 is insufficient. Teachers strive to create productive
members of society.
10:32:43 AM
DEB GERMANO testified via teleconference from Homer and voiced
being frustrated by the fact that some communities do not
contribute to education funding. She is proud of the Kenai
Borough's local contribution to education. People on the Peninsula
have been waiting for the Area Cost Differentials to change. Were
the Area Cost Differentials taken into account, the BSA proposed in
HB 1 could be tolerated. Districts around the State have
experienced cost increases. However, "there is no reason why a
child on the Kenai Peninsula is funded at a lesser level than
children in the Mat Su Valley". "It is time to address this issue".
10:36:16 AM
HEATHER LINGQUIST, Parent and former Teacher, Moose Pass School on
the Kenai Peninsula testified via teleconference from an offnet
site and informed the Committee that since three area schools share
one administrator, that administrator is onsite at each school only
one day a week. Teacher positions at the school have been reduced
from three to two; however, student counts are increasing and
Kindergarten through fourth grade students are in one class. "This
is ridiculous", and the situation would worsen the next school year
as the school is slated for only one-and-a-half teaching positions.
The area high school in Seward has been forced to eliminate its
entire music and drama program, and depends on the local community
for "survival". There is no excuse for not providing our children
"the best education possible". Not investing in our children "will
come back to haunt us". They are "a priceless commodity". The State
expends more than $60,000 a year to house a prisoner; therefore,
the State should be able to spend $5,200 per student for education.
She suggested adding $38 million to the BSA to replace the $38
million that would fund the Public Employees Retirement
System/Teachers Retirement System (PERS/TRS).
10:39:44 AM
{NOTE: The following testifiers presented their remarks in Juneau.]
MARY HAKALA, Parent and Coordinator of Alaska Kids Count!, spoke to
an issue of class size, as it is of "great importance to parents".
"Class size matters"; large class sizes negatively affect a
student's ability "to get the help they need when they need it",
and students must "be challenged". She referenced written testimony
[copy on file] from Carol Pratt, an English Teacher at Juneau
Douglas High School, who could not present the testimony in person
as she was teaching. The testimony depicted the magnitude of the
job, including the fact that while she has seats for 31 students,
there are 38 students in her Senior English class. Also enclosed in
Ms. Pratt's packet was an example of an essay rubric and two
student essays for that assignment. She challenged the Committee to
read them and think about how long it would take a teacher to read
and grade 99 student essays.
Ms. Hakala urged the Committee to consider the Alaska Kids Count!
recommendation that the BSA be increased to $5,120 per student.
This would assist in providing "improvements in our children's
classrooms".
Co-Chair Wilken acknowledged the efforts of volunteers such as Ms.
Hakala.
MIKE FORD, Member, Alaska Kids Count!, spoke to the organization's
recommendation for a per student BSA of $5,120. While the
Legislature overviews the entire State budget, Alaska Kids Count!,
in contrast, is at "the opposite end", as they see the affects of
education funding at the classroom level: its affects on the
teachers, the students, and the challenge of satisfying State and
federal education requirements with the resources they have. Those
resources are inadequate. In a recent nationwide study on education
funding and support, Alaska is ranked 30 out of 50 states. Were
this placement graded it would earn a C-. This grade must be
improved to at least a B or a C+. This would require additional
funding. Classroom improvements are the Organization's goal. The
State's public school system is an economic block for the State,
and providing a quality education to students would, in the long
run, produce "immeasurable benefits" to the State. "The public
school system pays dividends far beyond the Permanent Fund".
10:45:06 AM
PJ FORD SLACKT, Principal, North Pole High School, characterized
her school, the third largest high school in the Fairbanks School
District, as being one of its "last comprehensive high schools" as
it provides basic classes, in-house vocational programs, and
Advanced Placement classes. The funding "cuts have been severe".
She voiced appreciation for the Legislature's action last year in
attempting to minimize the funding reductions in the FY 05 budget.
None-the-less, North Pole High School did receive less funding
while at the same time, experiencing an increase in student
enrollment. Due to FY 05 funding constraints, the school lost an
assistant principal, an activities director, and four teachers. The
school has one of the largest student/teacher ratios in the
district: one Spanish class has 40 students, and a core English
class has 38 students, every period. Staff is exhausted. The time
of year that the Legislature is addressing school funding is
stressful, as the end result to her might be additional staffing
reductions. The School's student body includes college bound kids
as well as vocational students: they are the future of the State.
She hoped that the array of course offerings that are available
today would continue to be available to students in the future.
Co-Chair Wilken thanked the testifier for her comments and
commitment to education. He also noted that the North Pole High
School Football Team won the State Championship.
10:49:29 AM
ERICA KLUDT-PAINTER, Principal, Stedman Elementary School in
Petersburg, stated that the Petersburg School District encompasses
Petersburg and Mitkof Island and provides K-12 education programs
to approximately 630 students. The schools meet the adequate yearly
progress standards. While the District is proud of its program
offerings, it is concerned that years of flat funding have eroded
programs. The District is "in a crisis right now". Areas of concern
that must be addressed include: the development of a long term
stable fiscal plan for funding education in the State and a plan to
address the increasing fixed costs of such as insurance, retirement
plans, maintenance, and fuel costs. These fixed costs must be
addressed in order to allow the District to continue an adequate
level of service. At the proposed per student BSA of $4,919, the
District would be required to use a minimum of $300,000 of its
reserves, and would still have an $84,000 program shortfall. She
stated that currently the District's library is either staffed by
volunteers or is closed; counselor positions have been eliminated;
course offerings have diminished; and special education students
needs continue to challenge the District. As an educator, community
member, and a parent, she is concerned about future school program
offerings.
Senator Bunde noted that Senator Wilken has proposed legislation,
SB 88-POLICY ON GENERAL FUND REVENUE SHORTFALL, that would provide,
if adopted, a bridge until a long-term fiscal plan for the State is
developed.
LISA PRINCE SMITH, Principal, Wonder Park Elementary School in
Anchorage, informed the Committee that this 400-plus students
school is a Title I school in the South Mountainview section of
Anchorage. Approximately 70-percent of the school's students
qualify for free or reduced school lunches. She noted that the
Anchorage School District did not fund the educators' travel to
Juneau. The Anchorage School District would require more than the
proposed per student BSA of $4,919 to maintain status quo. Her
Title I school has experienced "tremendous decreases in our
school". One second-grade classroom students' ethnicity is
comprised of six bi-racial, five Asian, four Alaska Native, three
Black, two Hispanic, and one White student; nine do not speak
English and four are in Special Education services. The well-
qualified teacher of that class requested help at the beginning of
this school year. This is an example of future problems the school
would be encountering as more foreign borne children are
anticipated. On behalf of the principals of the twelve Title I
schools in Anchorage, she is requesting an increase in the BSA,
especially to benefit those students who do not speak English.
School must comply with the federal No Child Left Behind Act and
ensure that non-English speaking students move forward. This is a
daunting task as more foreign language speaking children arrive.
The school recently lost $70,000 in funding due to non-compliance.
Overall Title I funding, which is established by federal mandate,
has diminished approximately 13-percent over the last three years.
The funding levels and allocations are established by federal
mandate with 60-percent of the funds going to the school, 20-
percent supporting school improvements, five percent designated for
highly qualified status, ten percent for professional development,
and five percent allocated for administration. Funding is
diminishing while the school's diversity is increasing. Therefore,
an increase in the BSA would be appreciated.
10:56:46 AM
SHEILA JUDGE HALL, Principal, Campbell Elementary School in
Anchorage expressed that, while the school is not a Title I school,
it could be characterized "as a Title I type school because of the
needs in the community". Prior full-time employee position
reductions have increased fourth through sixth grade classroom
sizes to between 29 and 30 students. Teachers continue their
efforts to conduct individual student assessments and to teach data
driven curriculum; however, this would require an increase in staff
development and interventions for students who are non-proficient.
The school also has a high population of special education needs
students. More support to assist these students is required. The
school utilizes the Safe & Drug Free Schools funds and there is an
increasing need for anti-bullying curriculum and assets building.
Teachers have been trained in these areas; however, absent an
increase in teacher positions and a reduction in student/teacher
ratios, the need for these programs would continue to grow. She
asked that the BSA be increased.
10:59:18 AM
Senator Bunde asked whether the school's population has increased.
Ms. Hall responded that the "very transient" student population has
ranged between 490 and 500 students. The fact that there has been
an increase in the number of out-of-state students this year has
additionally challenged the school.
BARBARA NAGENGAST, President, Alaska Association of Principals and
Principal, Spring Hill Elementary School in Anchorage, and Alaska
Association of Elementary School Principals expressed that teachers
are working hard to meet federal and State education requirements.
Principals accept responsibility for raising student achievement
and work hard to use available funds efficiently and effectively.
Other resources are also used. The Legislature, parents, and
communities "expect that". Parents and principals want their
children taught in a safe environment; it "takes money to create"
that environment. Parents desire that their child's individual
needs be met: this "requires smaller class sizes". 29 children in a
third grade classroom is too many. Implementing the recommendations
of current research about effective instruction for core classes is
very expensive. Keeping an adequate technology base has made
tracking students progress easier; however, it is important that
the technology be upgraded, both for the administration of the
programs but also in delivering instruction to children. "All of
these things help children succeed academically". However, the most
important element is hiring and retaining "highly qualified staff".
This also requires funding. In the 22-years since she first
enrolled her own children in the Alaska school system, she has
watched the system be negatively affected by declining revenues.
Legislative support is needed to keep education a priority in the
State. We do not "have a wish list, we have a reality of need. We
can't afford to continue to cut teachers" and reduce intervention
programs. Without an increase in funding, the educational system
decline "would have long term affects on the economy of this
State".
11:04:36 AM
JOHN POTHAST, Principal, Sky View High School in Soldotna, and
President-Elect, Alaska Association of Secondary School Principals,
spoke on behalf of the 550 students in his high school and on
behalf of the Association's 319 school administrators. He voiced
appreciation of the efforts to address education funding early in
the Legislative Session. A BSA of $4,919 per student "is a good
start; however, it's not quite enough". In his six years as the
high school principal, the number of teachers has been reduced from
40 to 28 teachers, home economics, vocational education, library,
music, art, counselors, and other programs have been cut. While
some of this is due to declining enrollment, declining revenue is
also a factor. In his position as President-Elect of the Principals
Association, he has worked with colleagues across the nation. He
attested that not one administrator is "afraid of accountability",
for such things as money that is provided and for student test
scores. However, sufficient funding must be provided to accomplish
these mandates. Schools have continued to do more and more "with
less and less". However, "the sustainability of that cannot
continue". He likened it to putting enough gas in one's car to get
from point A to point B but never changing the oil, checking
transmission fluid, doing tune-ups or other maintenance needs.
Education has not been funded to the appropriate level, and
continuing the current trend would not allow for "the oil to be
changed". Extra help is required. He urged that a higher BSA be
considered. Schools on the Kenai Peninsula would require
approximately $5,000 per student to maintain status quo.
DENISE GREEN-WILKINSON, Principal, Polaris K-12 School in
Anchorage; State Coordinator, Alaska Association of Secondary
School Principals; and Co-Chair on the National No Child Left
Behind Task Force, commented that the increase proposed in this
bill would "simply hold us from going backwards". Class sizes would
be impacted; the ability to adequately provide supplies and
equipment would be negatively affected; the federal No Child Left
Behind requirements would further burden schools; and professional
development of staff would be difficult to maintain and carry
forward into the classroom. Continuous training is required. The
Anchorage School District is recommending a BSA of $5,120.
11:10:29 AM
ANDREA (ANDI) STOREY, Parent and Member, Juneau School Board and
Member, Alaska Kids Count!, recounted her written testimony [copy
on file} as follows.
My name is Andrea Story, I am a Mother of two in the Alaska
Public School system. I am a Member of the Juneau School Board
and I am a Member of Alaska Kids Count!.
I am testifying today in support of increasing the Student
Base Allocation to $5,120. The current amount of the Student
Base Allocation is $4,919, that means 300,000 dollars in cuts
to the Juneau School district. This also assumes the City will
fund to the new CAP, which is a $900,000 increase. If they do
not, it will mean more cuts. Juneau traditionally funds to the
Cap. 43 percent of our education budget is paid by the City.
As a School Board member I watch closely your decision on what
to appropriate to public education .As you know the
Legislature appropriates, the School Board allocates. I can
tell you that as a School Board member I find this to be made
up of difficult decisions. For instance in Juneau, since I've
been on the Board parents are advocating for lower class
sizes, that was one of the main reasons I ran for the Board,
to lower class sizes. In the budget process last year the
Board to balance the budget planned to cut three bus routes
whose students live 1.5 miles or closer to school. The Board
listened to parents testifying about safety concerns and how
they worry for their 5, 6, 7 year olds safety as they walk 1.5
miles to school. We received 2 petitions signed by over 140
parents requesting that their bus service not be cut. We
funded the buses at the expense of being able to lower class
sizes in three primary classrooms. I see how there are tough
choices to make. Right now the budget shows a 300,000 in cut,
which we passed by reducing the 3 school bus routes that we
funded last year and reducing the 3 Dropout Counselor
positions.
As a new Board Member, I hear that education does receive a
huge amount of money, it is the 2nd largest expenditure for
our state. So I ask myself, "Are School Boards asking too much
money for our schools?" I went looking for sources comparing
what other state are doing. I know it is a big expense to all
states. I know children are expensive to educate. I went to
Education Week, which is a non-profit organization based in
Washington, D.C. who's purpose is to raise the level of the
public and professionals information on issues concerning
education. For the last nine years they have done a State-by-
State Report card. This year's report card, which is adjusted
for regional cost differences rates Alaska 30th out of 50 in
the amount of money spent on education (www.edweek.org). This
tells me that Alaska is below average in the amount of money
our state spends on education. It tells me that it is not
unreasonable for School Boards and principals and parents to
be asking for more money in the Student Base Allocation.
In Juneau our school site councils have put an unfunded
critical needs list together for if we had increased funding.
It shows what is wanted, the amount it costs, and the
additional foundation formula amount needed to get that
service. For example to enhance graduation success which helps
meet NCLB requirements, an English as a Second Language
Teacher costs 61,000 [dollars], that is an increase of 8
dollars. Summer School Support is 75,000 dollars, an increase
of 10 dollars to the foundation, the 3 Dropout Counselors cost
172,000 [dollars] an increase of 23 dollars to the foundation.
To reinstate the buses it would be 33 dollars.
Funds are also needed to enrich the basic educational program.
Lowering class size in Juneau to Board policy costs 978,000
dollars or 128 dollars in additional foundation formula. My
point is, every dollar amount that the Legislature increases
the foundation formula, that has a direct benefit to resources
available to the school districts you represent across the
state. My point is also that School Boards struggle with what
to fund as there are many unfunded critical needs.
I urge you to appropriate a Student Base Allocation of 5,120
dollars. Thank you for listening.
11:14:18 AM
KRISTEN ROMANOFF, Parent, Member of Alaska Kids Count!, and an
educator, noted that many have spoken to the importance of the
classroom experience for children and the affect of class size on
that experience. To further that issue, she shared being personally
"alarmed" about the number of families who have relocated or plan
to relocate to other states or are reluctant to return to Alaska
because of the condition of the State's education program.
Student/teacher ratios, the student allocation, and education
qualities are issues of concern. "It is ironic" that the State has
spent tremendous resources attracting people to the State,
providing Permanent Fund Dividends, and attractive retirement
benefits, yet has insufficiently funded education for the last
decade. The consequences are disturbing. "The State's economy
depends on working, dedicated families" staying in the State. The
Education system should be a priority and an "equitable and high
quality education" should be provided. She urged an increase beyond
what is proposed.
11:17:13 AM
AMY SKILLBRED, Parent, voiced appreciation for the testimony
provided by school administrators "to change, incrementally, a
trend, over time, to increase the funding". However, as a parent of
children currently in the school system, the need to change now is
more imperative. Her child's high school classes are overcrowded
and there is a shortage of textbooks. "Basic things are missing".
Her middle school child also has large class sizes. "That's not
good enough". As a parent, she is asking that legislators "make a
positive difference in the classrooms next year" rather than
implementing an upward trend over the next five years. If the State
could use the Permanent Fund to develop its resources, funding
should be available to support the education needs of the State's
"most valuable resources", its children. The money could be found.
Senator Bunde noted, for clarification purposes, that the earnings
of the Permanent Fund are used for resource development purposes.
Ms. Skillbred affirmed that she was aware that the earnings rather
than the principal of the Permanent Fund are utilized.
There being no further testifiers, Co-Chair Wilken announced that
public testimony on this bill has concluded. The bill was HELD in
Committee.
ADJOURNMENT
Co-Chair Wilken adjourned the meeting at 11:19 AM.
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