Legislature(2017 - 2018)SENATE FINANCE 532
02/23/2018 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB131 | |
| HB287 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 131 | TELECONFERENCED | |
| + | HB 287 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 23, 2018
9:01 a.m.
9:01:12 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Peter Micciche
Senator Donny Olson
Senator Gary Stevens
Senator Natasha von Imhof
MEMBERS ABSENT
None
ALSO PRESENT
Tim Lamkin, Staff, Senator Gary Stevens; Representative
Paul Seaton, Sponsor.
SUMMARY
SB 131 EDUCATION FUNDING; BUDGET
SB 131 was HEARD and HELD in committee for
further consideration.
HB 287(brf sup maj fld)
APPROP: PUPIL TRANSPORTATION; EDUCATION
HB 287(brf sup maj fld) was HEARD and HELD in
committee for further consideration.
SENATE BILL NO. 131
"An Act relating to a separate appropriation bill for
operating expenses for public education and
establishing a date by which the bill must be passed
by the legislature and transmitted to the governor
each year; relating to the budget responsibilities of
the governor; and providing for an effective date."
9:02:17 AM
SENATOR GARY STEVENS, SPONSOR, introduced the bill.
9:03:05 AM
TIM LAMKIN, STAFF, SENATOR GARY STEVENS, explained that the
bill would early fund the formula program that was
currently set in statute. He thought that the creation of
the formula had been an attempt to depoliticize education
funding in the state. He noted that education had been very
important to the founders of the state and had been one of
the first major policy issues they put forward.
9:04:48 AM
Mr. Lamkin outlined the Sectional Analysis (copy on file):
Section 1: Requires the governor to submit to the
legislature a separate appropriation bill for public
education, formula funding for schools. The
legislature is directed to pass and transmit to the
governor by April 1 a bill making appropriations for
formula funding for the following fiscal year.
Section 2: Is a technical change to the Executive
Budget Act, to accommodate the provision for a
separate appropriations bill for formula funding
public education.
Section 3: The effective date of the Is July 1, 2018,
so a separate appropriations bill for formula funding
public education would be first required for the FY
2020 budget.
9:05:43 AM
Co-Chair MacKinnon understood that the concept of the
legislation had been heard before.
Senator Stevens said that he had introduced it in 2002 but
that at that time districts had not been interested. He
hoped that the legislation would be effective in solving
the issue of teachers in the state receiving pink slips and
the overall uncertainty faced by school districts regarding
funding for education.
9:06:44 AM
Co-Chair MacKinnon expressed concern that an early funding
of education appropriation bill could be used to fund thing
outside of education. She was also concerned that once
education was taken care of in the basic formula, there
remained the fight for additional money in the Operating
Budget.
9:07:39 AM
Co-Chair MacKinnon asked how the school at Mount Edgecumbe
and pupil transportation would be addressed.
Mr. Lamkin said that the bill focused on the statutes that
pertained directly to the foundation formula. He said that
opening the formula to allow for inclusion was not out of
the question but could be difficult.
9:08:55 AM
Senator Olson asked about early childhood program outside
of basic school funding. He wondered whether the bill would
affect teachers in early childhood education.
Mr. Lamkin reiterated that inclusivity of programs outside
of K-12 could be challenging but was not impossible.
SB 131 was HEARD and HELD in committee for further
consideration.
9:10:40 AM
AT EASE
9:12:38 AM
RECONVENED
Co-Chair MacKinnon handed the gavel to Co-Chair Hoffman.
HOUSE BILL NO. 287(brf sup maj fld)
"An Act making appropriations for public education and
transportation of students; and providing for an
effective date."
9:13:21 AM
REPRESENTATIVE PAUL SEATON, SPONSOR, offered a brief
history on the genesis of the legislation.
9:15:54 AM
Representative Seaton discussed the presentation, "HB 287
Pupil Transportation and Education: An Early and Stand-
alone Appropriation Bill" (copy on file).
Representative Seaton highlighted Slide 2, "HB 287-
Comparison":
HB 287 - As Introduced
Section 1 - Appropriates $50,853,100 for Foundation
Program, Boarding Home Grans, Youth in Detention,
Special Schools, and Mt. Edgecumbe Boarding school.
Section 2 - Sets out funding by agency.
Section 3 - Sets out funding for appropriations in
Section 1.
Section 4 - Appropriates $1.2 billion of CBR to the
public education fund. Appropriates an estimated $67.8
million from the SBR for student transportation.
HB 287 - As passed by the house
Section 1 - Unchanged
Section 2 - Unchanged
Section 3 - Unchanged
Section 4 - $1.2 billion of CBR funding is removed
from the bill.
Without the CBR funding, the "estimated to be" of SBR
funding now needed for student transportation is $78.2
million.
9:17:07 AM
Representative Seaton displayed Slide 3, "HB 287 - Intent
of the bill":
• Stand-alone education appropriations bill.
• Allow school districts to know their level of
state aid in advance of passage of the state
operating budget.
• Avoid unnecessary teacher layoff notices.
• Same level of funding as the Governor's request.
• Use $1.2 billion from CBR and about $67.8 million
from SBR.
9:17:52 AM
Representative Seaton addressed Slide 4, "K-12 Funding
History - All Funds (FY15-19). The slide depicted a bar
graph that listed the funding for K-12, broken down by
Mount Edgecumbe Boarding School Facilities Maintenance, Mt.
Edgecumbe Boarding School, Special Schools, Youth in
Detention, Boarding Home Grants, Additional Foundation
Funding, Pupil Transportation, and Foundation Program.
9:18:49 AM
Co-Chair MacKinnon noted that the green chunk on the first
bar for the FY 15 final budget was not additional funding
but was one-time money that had been distributed through
the formula to create an equitable spread.
Representative Seaton agreed.
9:19:57 AM
Representative Seaton highlighted Slide 5, "End-of-Year
Savings Balances - FY 15-19. The slide showed a bar graph
that end-of-year savings balances for the Statutory Budget
Reserve and the Constitutional Budget Reserve (CBR).
9:20:45 AM
Representative Seaton addressed Slide 6, "Earnings
Comparisons - CBR and Permanent Fund." The slide offered
earnings comparisons of the FY 17 earning of the CBR and
the 10-year earning projection of the Permanent Fund.
9:21:27 AM
Representative Seaton discussed Slide 7, "Effect of
Earnings Rate on $1.2 Billion." The slide reflected a
difference of $632 million in 10 years between the CBR and
the Permanent Fund.
9:21:58 AM
Representative Seaton looked at Slide 8:
Education is one of the highest priority programs for
the state and educators are shaping future
generations.
HB 287 reflects the importance of education to our
state.
9:22:22 AM
Co-Chair Hoffman said that discussions about education were
always heated and that every legislator claimed that
education was a top priority. He said that the bill would
be discussed during caucus.
9:22:54 AM
Senator Stevens queried the dangers of a live appropriation
bill between the House and the Senate.
Representative Seaton said that it would take agreement by
both bodies to pass something.
9:24:09 AM
Senator Micciche hoped that the legislature could work to
make Alaskans feel more secure in the financial health of
the state.
9:25:11 AM
Representative Seaton stated that he was willing to work
with other funding sources for the bill and was eager to
work with the Senate on a successful piece of legislation.
9:26:08 AM
Co-Chair MacKinnon noted that there was an assertion that
$1 billion in the CBR was adequate, which she believed was
debatable. She hoped that a funding source could be agreed
upon by both bodies. She believed that a draw from the
earnings account should not happen without a structured
draw.
9:28:39 AM
Vice-Chair Bishop expressed appreciation for the
legislation.
9:28:56 AM
Co-Chair Hoffman discussed housekeeping.
HB 287(brf sup maj fld) was HEARD and HELD in committee for
further consideration.
ADJOURNMENT
9:29:32 AM
The meeting was adjourned at 9:29 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 131 SenateEducationPublicTestimonyPiazza20180125.docx |
SFIN 2/23/2018 9:00:00 AM |
SB 131 |
| SB131_EarlyEdFunding_Sectional_VersionA.pdf |
SFIN 2/23/2018 9:00:00 AM |
SB 131 |
| SB131_EarlyEdFunding_SponsorStatement_VersionA.pdf |
SFIN 2/23/2018 9:00:00 AM |
SB 131 |
| SB131_EarlyEdFunding_HistoryOfBudgetPassage.pdf |
SFIN 2/23/2018 9:00:00 AM |
SB 131 |
| SB131_EarlyEdFunding_SupportLetters_Bundled.pdf |
SFIN 2/23/2018 9:00:00 AM |
SB 131 |
| HB 287 Summary of Changes.pdf |
SFIN 2/23/2018 9:00:00 AM |
HB 287 |
| HB 287 Sponsor Statement.pdf |
SFIN 2/23/2018 9:00:00 AM |
HB 287 |
| HB 287 Letters of Support.pdf |
SFIN 2/23/2018 9:00:00 AM |
HB 287 |
| HB 287 Support Letter.pdf |
SFIN 2/23/2018 9:00:00 AM |
HB 287 |
| HB 287 Support Spangler.pdf |
SFIN 2/23/2018 9:00:00 AM |
HB 287 |
| HB 287 Sen FIN 2-23-2018.pdf |
SFIN 2/23/2018 9:00:00 AM |
HB 287 |
| HB 287 Resolution Kenai.pdf |
SFIN 2/23/2018 9:00:00 AM |
HB 287 |