Legislature(2007 - 2008)SENATE FINANCE 532

03/15/2008 01:30 PM Senate SPECIAL COMMITTEE ON EDUCATION


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01:35:49 PM Start
01:36:02 PM Overview: Charter Schools
03:34:05 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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-- Rescheduled from 03/08/08 --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ Overview & Workshop on Charter Schools TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
             SENATE SPECIAL COMMITTEE ON EDUCATION                                                                            
                         March 15, 2008                                                                                         
                           1:35 p.m.                                                                                            
                                                                                                                                
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Gary Stevens, Chair                                                                                                     
Senator Charlie Huggins, Vice Chair                                                                                             
Senator Bettye Davis                                                                                                            
Senator Donald Olson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Gary Wilken                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Overview: Charter Schools                                                                                                       
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to report.                                                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
EDDY JEANS, Director                                                                                                            
School Finance                                                                                                                  
Department of Education and Early Development (DEED)                                                                            
Juneau AK                                                                                                                       
POSITION STATEMENT: Participated in overview of charter schools.                                                              
                                                                                                                                
RICHARD WEBB, Chairman                                                                                                          
Twindly-Bridge APC Board                                                                                                        
Chairman and president of the Matsu Charter School Association,                                                                 
Wasilla AK                                                                                                                      
POSITION STATEMENT: Participated in overview of charter schools.                                                              
                                                                                                                                
GREG MILLER, Principal                                                                                                          
Twindly-Bridge Charter School                                                                                                   
Wasilla AK                                                                                                                      
POSITION STATEMENT: Participated in overview of charter schools.                                                              
                                                                                                                                
BRAD FALKNER                                                                                                                    
Academic Policy Committee                                                                                                       
Fireweed Academy                                                                                                                
Homer AK                                                                                                                        
POSITION STATEMENT: Participated  in overview of charter schools.                                                             
                                                                                                                                
TONY NEUMAN, representing himself                                                                                               
Juneau AK                                                                                                                       
POSITION STATEMENT: Participated  in overview of charter schools.                                                             
                                                                                                                                
BRENDA TAYLOR, representing herself                                                                                             
Juneau AK                                                                                                                       
POSITION STATEMENT: Participated  in overview of charter schools.                                                             
                                                                                                                                
MISTY HAMILTON, Chairman                                                                                                        
Academic Policy Committee (APC)                                                                                                 
Kaleidoscope Charter School of Arts and Science                                                                                 
Kenai AK                                                                                                                        
POSITION STATEMENT: Participated  in overview of charter schools.                                                             
                                                                                                                                
JEFF FRIEDMAN, member                                                                                                           
Anchorage School Board                                                                                                          
Anchorage AK                                                                                                                    
POSITION STATEMENT: Participated  in overview of charter schools.                                                             
                                                                                                                                
KIKI ABRAHAMSON                                                                                                                 
Fireweed Academy                                                                                                                
Homer AK                                                                                                                        
POSITION STATEMENT: Participated  in overview of charter schools.                                                             
                                                                                                                                
ANNMARIE KEEP-BARNES, President                                                                                                 
Academic Policy Committee                                                                                                       
Star of the North secondary school                                                                                              
Fairbanks AK                                                                                                                    
POSITION STATEMENT: Participated  in overview of charter schools.                                                             
                                                                                                                                
DANA HANDELIN                                                                                                                   
Academic Policy Committee (APC)                                                                                                 
Anvil City Science Academy                                                                                                      
Nome AK                                                                                                                         
POSITION STATEMENT: Participated  in overview of charter schools.                                                             
                                                                                                                                
DAVE JONES, Assistant Superintendent                                                                                            
Kenai Peninsula Borough School District (KPSD)                                                                                  
Soldotna AK                                                                                                                     
POSITION STATEMENT: Participated  in overview of charter schools.                                                             
                                                                                                                                
CATHERINE REARDON                                                                                                               
Staff to Senator Joe Thomas                                                                                                     
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Participated in overview of charter schools.                                                              
                                                                                                                                
BONNIE JASON, Teacher                                                                                                           
Homer Middle School                                                                                                             
Homer AK                                                                                                                        
POSITION STATEMENT: Participated in overview of charter schools.                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  GARY  STEVENS  called  the   Senate  Special  Committee  on                                                            
Education  meeting  to  order at  1:35:49  PM.  Senators  Huggins,                                                            
Stevens, Davis, and Olson were present at the call to order.                                                                    
                                                                                                                                
1:36:02 PM                                                                                                                    
^Overview: Charter Schools                                                                                                      
                                                                                                                                
CHAIR STEVENS announced the overview of charter schools.                                                                        
                                                                                                                                
1:36:47 PM                                                                                                                    
EDDY  JEANS, Director,  School  Finance,  Department of  Education                                                              
and   Early   Development   (DEED),  said   the   charter   school                                                              
legislation  was initially  passed in  1995 when  the state  had a                                                              
different  funding formula  that  was based  on the  instructional                                                              
unit. The  adjustment for elementary  schools was  1 instructional                                                              
unit for every 17  children and 1 instructional unit  for every 15                                                              
students in  secondary schools. So  it was very easy  to calculate                                                              
how  much money  a charter  school  was generating  in the  larger                                                              
communities.                                                                                                                    
                                                                                                                                
When  the  department  went to  the  per-student  or  school-based                                                              
formula  in  1998,  there  were  concerns  that  the  table  would                                                              
promote  inefficient  small schools  in  the larger  urban  areas.                                                              
So,  SB 36  had  a component  of  the  funding formula  that  said                                                              
alternative schools  had to have at least 200  students to qualify                                                              
as a  separate school.  That legislation  was  amended in  2000 to                                                              
split   out   charter   schools  from   the   alternative   school                                                              
calculation  and  to drop  the  threshold  for  them down  to  150                                                              
students.                                                                                                                       
                                                                                                                                
Currently the  state has  three charter  schools that  are serving                                                              
fewer than  150 students.  Those schools are  in Juneau,  Nome and                                                              
Kenai.  The  issue  has  come  up on  an  ongoing  basis  and  the                                                              
legislature  has provided  supplemental  funding  for these  small                                                              
charter  schools  for  the last  four  years.    At one  time  the                                                              
supplemental grant  was as  high as $250,000  and this year  it is                                                              
proposed to be $100,000.                                                                                                        
                                                                                                                                
1:39:47 PM                                                                                                                    
MR.   JEANS  said   the  department   had   worked  with   various                                                              
legislators  to come up  with some  alternative funding  solutions                                                              
and  what  makes  the  most  sense   is  for  the  legislature  to                                                              
determine  what  the appropriate  adjustment  would  be for  those                                                              
schools  under  150   students  and  to  simply   place  a  single                                                              
adjustment factor  in statute  for them. He  referred them  to the                                                              
school size  adjustment table in  the foundation program  that has                                                              
an adjustment  factor of  1.27 for  schools with 75-150  students.                                                              
The spread  sheet before them  showed what the funding  allocation                                                              
would be under two scenarios - 1.08 and 1.27.                                                                                   
                                                                                                                                
1:41:20 PM                                                                                                                    
MR. JEANS  said statute  required the  Juneau charter  school with                                                              
68 students  to be added  to the largest  school in  the district,                                                              
which is the high  school Their adjustment for FY08  is .84, which                                                              
is  just a  little higher  than the  correspondence allocation  of                                                              
.80.  It generated  about  $371,000 under  that  scenario. But  if                                                              
they were  to have a single  adjustment of 1.08 in  statute, their                                                              
funding would jump  to $477,000. And if the adjustment  were 1.27,                                                              
that would go up to $561,000.                                                                                                   
                                                                                                                                
He said  the Education Funding Task  Force elected not  to address                                                              
correspondence   or  charter  school   funding  this   summer  and                                                              
deferred it to the proposed standing committees.                                                                                
                                                                                                                                
1:43:00 PM                                                                                                                    
CHAIR  STEVENS  asked  if  the funding  bills  going  through  the                                                              
legislature right now have an impact on charter schools.                                                                        
                                                                                                                                
MR. JEANS responded  that HB 273 contained the  Funding Task Force                                                              
recommendations,  the  first  component  of  which  contained  the                                                              
district cost factors.  It would implement 50 percent  of the cost                                                              
factors in FY09  and an additional 12.5 percent for  the next four                                                              
years until 100  percent of the cost factors  are implemented. The                                                              
other component  increased  the base student  allocation  (BSA) by                                                              
$100. The  last component  changed the  funding for the  intensive                                                              
needs  students from  5 times the  base student  allocation  to 9,                                                              
then 11 then 13.                                                                                                                
                                                                                                                                
MR.  JEANS stated  that these  three small  charter schools,  even                                                              
though  the cost  factors went  up slightly  and the  BSA went  up                                                              
$100, are probably  are not going to see significant  increases in                                                              
their  funding  because  of  the  way  the  statute  requires  the                                                              
department  to fund them  with the  largest school.  So, if  it is                                                              
the  will of  the legislature  to direct  additional resources  to                                                              
the  smaller  charter  schools,  they  will  need  to  change  the                                                              
statute or  continue supplemental funding.  He said the  state has                                                              
22  charter schools  and another  one  is projected  in FY09;  the                                                              
charter   school  statute   allows  up  to   60  charter   schools                                                              
statewide.                                                                                                                      
                                                                                                                                
1:45:11 PM                                                                                                                    
SENATOR HUGGINS  said he  has always been  a supporter  of charter                                                              
schools; he  was on the  local school board  and his  wife started                                                              
one. He  thought they  should be  looking at  all charter  schools                                                              
comprehensively,  not  just  the  one  element  of  small  charter                                                              
schools.  He said some  districts don't  give local  contributions                                                              
to charter  schools and  one of  the biggest  hurdles for  them is                                                              
housing.  Having   a  correspondence  component  helps   them  get                                                              
started because those don't need housing.                                                                                       
                                                                                                                                
1:47:15 PM                                                                                                                    
CHAIR STEVENS agreed with him.                                                                                                  
                                                                                                                                
SENATOR HUGGINS  said the other  component is alternative  schools                                                              
that have a 200-student  plateau and maybe that  should be lowered                                                              
to 175, for  instance. He wants  to see all students  succeed, but                                                              
if  they  start  an  industry of  small  schools  that  starts  to                                                              
expand, they might price themselves out of business.                                                                            
                                                                                                                                
1:48:46 PM                                                                                                                    
CHAIR  STEVENS asked  Mr.  Jeans if  he  thought proliferation  of                                                              
small schools was a concern.                                                                                                    
                                                                                                                                
MR. JEANS  replied that would  have to be  a policy call;  his job                                                              
is  to  make  him  aware  of that  as  a  possibility  up  to  the                                                              
statutory cap of 60 charter schools.                                                                                            
                                                                                                                                
SENATOR HUGGINS  said a  school with 200  students that  loses one                                                              
would get a large hit.                                                                                                          
                                                                                                                                
1:49:31 PM                                                                                                                    
MR.  JEANS said  that figure  is  probably close  to $300,000.  He                                                              
said the  department's position on  funding is that  it calculates                                                              
what the  school will generate  in basic  need - the  adjusted ADM                                                              
times the  base student allocation -  and that has a  component of                                                              
the  required local  effort in  it.   Those  charter schools  that                                                              
want to  participate in  the excess  local contribution  will have                                                              
to negotiate with their local school boards.                                                                                    
                                                                                                                                
1:50:50 PM                                                                                                                    
CHAIR STEVENS asked  if there are charter schools  that do receive                                                              
local contributions.                                                                                                            
                                                                                                                                
MR. JEANS replied  that the charter schools receive  through their                                                              
funding the required  local effort. The excess  local effort above                                                              
the requirement varies from district to district.                                                                               
                                                                                                                                
1:51:14 PM                                                                                                                    
RICHARD  WEBB, Chairman,  Twindly-Bridge  APC  Board,  said he  is                                                              
also  chairman   and  president   of  the  Matsu   Charter  School                                                              
Association,  Wasilla. He  explained  that  as organizations  grow                                                              
and  mature  they  seek  to  improve  themselves  and  often  form                                                              
associations.  Over the  last  three years  he  has been  involved                                                              
with  getting  the  Twindly-Bridge  school  going.  He  wanted  to                                                              
address this in terms of a broader perspective.                                                                                 
                                                                                                                                
MR. WEBB  said he  believed a technological  earthquake  is taking                                                              
place  that  is web-centric,  immersive,  simulative,  mobile  and                                                              
energy  independent. It  is changing  the economy  and impact  the                                                              
educational system.  He said that charter schools are  good at two                                                              
things in particular.  They are, in essence, laboratories  and can                                                              
experiment  and look  at new  ways of  doing things;  they can  do                                                              
pilot  programs that  can be  taken  back to  the larger  schools.                                                              
Secondly they are  very adaptive. The people at either  end of the                                                              
bell curve  in regular schools  are not  as well served  there and                                                              
can be  best served  in charter schools  that target  their needs.                                                              
Charter  schools are  just a  different color  of regular  school,                                                              
but they have their own function.                                                                                               
                                                                                                                                
CHAIR STEVENS called an at-ease at 1:56:20 PM.                                                                                
                                                                                                                                
CHAIR STEVENS called the meeting back to order at 2:05:36 PM.                                                                 
                                                                                                                                
MR. WEBB  said charter schools are  public schools, but  should be                                                              
looked  at  for  the  unique  role  and  character  they  have.  A                                                              
particular  number doesn't  accurately  reflect  their value,  and                                                              
that would have  to be looked at comprehensively  rather than just                                                              
as a funding issue.                                                                                                             
                                                                                                                                
CHAIR STEVENS  asked how  many schools he  represents and  how big                                                              
they are.                                                                                                                       
                                                                                                                                
MR.  WEBB replied  that he  represents the  three current  charter                                                              
schools  in  the Matsu  Valley  as  well  as a  Spanish  immersion                                                              
school  that is  coming  on line.  Twindly-Bridge  has around  280                                                              
students,  Matsu Academy  has 226  students and  Midnight Sun  has                                                              
164  students.   Already  the  Spanish   program  has   about  120                                                              
committed students and it should have no problem reaching 150.                                                                  
                                                                                                                                
2:09:02 PM                                                                                                                    
SENATOR HUGGINS  asked if startup  grants for charter  schools are                                                              
still in effect.                                                                                                                
                                                                                                                                
MR.  WEBB  replied  yes  and  no.   In  previous  years  they  got                                                              
significant  federal money,  but this  year that  funding was  not                                                              
applied  for  because  of  some  mix-up  and  the  association  is                                                              
looking for ways  of making up the shortfall.  Generally speaking,                                                              
money is available, but not this year.                                                                                          
                                                                                                                                
2:10:27 PM                                                                                                                    
GREG MILLER,  principal, Twindly-Bridge  Charter School,  said his                                                              
is  a  home  school  program that  is  unique  because  it  offers                                                              
correspondence  classes that  can't be  taught at  home. It  is in                                                              
its  third  year of  operation.  Because  it is  a  correspondence                                                              
program, it exists  off of the state foundation  unit which covers                                                              
80  percent  with  the district  taking  5  percent  for  indirect                                                              
costs.  So  he  runs  the program  on  75  percent  of  the  state                                                              
foundation funding.                                                                                                             
                                                                                                                                
He said  charter school  funding can  be a  blessing and  a curse.                                                              
The good  point is that  they are free  to use district  money for                                                              
their needs, but  the problem is that there is no  other source of                                                              
revenue.  As  costs go up, he  has to either increase  his funding                                                              
or cut somewhere.  So, if they  freeze the funding unit,  they are                                                              
also freezing his funding.                                                                                                      
                                                                                                                                
CHAIR STEVENS asked where his facility is.                                                                                      
                                                                                                                                
MR. MILLER  replied that it is in  a leased building and  it costs                                                              
$100,000 per year.                                                                                                              
                                                                                                                                
2:13:24 PM                                                                                                                    
SENATOR HUGGINS  said correspondence  schools  are the easiest  to                                                              
start,  but Mr.  Miller's is  in a strip  mall. They  only get  80                                                              
percent of the  allocation of dollars and charter  schools can get                                                              
into trouble very quickly because they have to rent their space.                                                                
                                                                                                                                
He  said  that  New  York  State   is  experimenting  with  paying                                                              
teachers a  mean salary  of about $120,000  with the  objective of                                                              
seeing if  highly paid staff  contributes to over-all  achievement                                                              
of the student population.                                                                                                      
                                                                                                                                
2:15:15 PM                                                                                                                    
BRAD  FALKNER,  Homer  resident,  said  he  is  a  member  of  the                                                              
Academic Policy  Committee of  the Fireweed  Academy, a  school of                                                              
75  students that  shares  the district  school  building of  West                                                              
Homer Elementary that  has another 225 students. All  300 grade 3-                                                              
6 students in Homer go to school in the same building.                                                                          
                                                                                                                                
He said  the charter  school allows a  choice in education  within                                                              
the same  building. When  the 200-student  limit that  was changed                                                              
to 150  so small charter  schools wouldn't  break off to  get more                                                              
money  than their  district counterparts,  it didn't  have a  good                                                              
effect  in a small  town like  Homer. West  Homer Elementary,  the                                                              
charter  school, now  gets 26  percent less  funding per  student.                                                              
The  second negative  effect  was  that it  forced  the school  to                                                              
grow.  But Homer  has a  total of  300 students,  which means  the                                                              
charter  school needs  to take  half  the students  and that  puts                                                              
them  in  competition   unnecessarily  with  the   other  district                                                              
school.                                                                                                                         
                                                                                                                                
The other  problem with the  way the funding  works is  that every                                                              
small charter  school in  every separate district  is funded  at a                                                              
different  level. The  Nome  High School,  for  instance, has  300                                                              
students, 44 of  which are in a separate charter;  they are funded                                                              
at  the same  level as  all  the Nome  High  School students.  The                                                              
Fireweed  Academy   with  75  students   is  grouped   with  three                                                              
alternative  programs-all  high schools.  So  gets  funded like  a                                                              
school of  750 students.  Because of  the difference in  programs,                                                              
there is  a 26 percent discrepancy  between the same-aged  kids in                                                              
the same building in the same town.                                                                                             
                                                                                                                                
2:19:53 PM                                                                                                                    
MR.  FALKNER  said   he  thought  the  funding   should  be  equal                                                              
statewide.  The  other problem  with  the initial  charter  school                                                              
legislation  is that  it  doesn't provide  for  housing a  charter                                                              
school.  They  really  have no  right  to  be  in the  West  Homer                                                              
Elementary  School  building.  When   they  first  moved  in,  the                                                              
building was  occupied 50 percent  by students. It has  pitted the                                                              
charter community  against  the district  teachers who don't  want                                                              
them in the school.                                                                                                             
                                                                                                                                
2:21:10 PM                                                                                                                    
CHAIR STEVENS said  that Fireweed Academy had 75  students in 2008                                                              
and then 128 in 2009. He asked if there was an expansion.                                                                       
                                                                                                                                
MR.  FALKNER  replied that  the  academy  was  forced to  plan  to                                                              
expand to 150, but  they were given no space to  do it. They can't                                                              
pay scale for their  teachers and do pay $150,000  to the district                                                              
for renting  the current  four classrooms.  Students want  to join                                                              
the school, but there isn't enough funding to expand it.                                                                        
                                                                                                                                
2:22:20 PM                                                                                                                    
CHAIR STEVENS asked if he saw that increase happening next year.                                                                
                                                                                                                                
MR.  FALKNER replied  no, but  they have  to grow  to be  fiscally                                                              
responsible  and they  are going  to  be forced  to contract  some                                                              
classrooms  somewhere and  grow.  That growth  will come  straight                                                              
out  of the  district's student  pool putting  Fireweed in  direct                                                              
competition  with the district  school. They  don't want  to grow,                                                              
but they need  to get to 150 or  it will fail. The  school has had                                                              
excellent academic success for 12 years.                                                                                        
                                                                                                                                
SENATOR  HUGGINS asked  if the  Fireweed  Academy has  to pay  the                                                              
school district for the space it uses.                                                                                          
                                                                                                                                
MR. FALKNER  replied yes; they paid  4.64 percent off the  top for                                                              
administrative  costs  in  FY08.  They also  pay  exact  pro-rated                                                              
costs based  on per student  in the building,  but they  don't get                                                              
to use  the computer  lab or  the offices.  This district  figures                                                              
out  the  costs  and they  end  up  paying  twice  as much  for  a                                                              
classroom  as other  charter schools  are charging.  They pay  for                                                              
the classrooms,  the janitors,  the heat,  lights and  electricity                                                              
and share the cost of running the building pro-rated by student.                                                                
                                                                                                                                
2:24:43 PM                                                                                                                    
SENATOR HUGGINS asked the total on an annual basis.                                                                             
                                                                                                                                
MR. FALKNER  replied that  it is about  $150,000 for  75 students,                                                              
and another $25,000  - $28,000 covers administrative  costs to the                                                              
Kenai Peninsula  Borough School  District. He  ended up  by saying                                                              
that  he appreciated  all the  work  the legislature  has done  on                                                              
this issue.                                                                                                                     
                                                                                                                                
2:25:40 PM                                                                                                                    
TONY  NEUMAN,  Juneau  resident,  said he  has  two  children  who                                                              
attend the Juneau  Community Charter School (JCCS)  that serves 65                                                              
students and is  in its 11th year of operation. It  fills a unique                                                              
roll in education in the Juneau community.                                                                                      
                                                                                                                                
BRENDA TAYLOR,  Juneau resident,  said she  also has two  children                                                              
who attend  the Juneau Community  Charter School. She  said public                                                              
schools  were  created  nearly  200 years  ago  to  provide  equal                                                              
opportunities  for all  students. But  now one  size does  not fit                                                              
all  and students  succeeding in  different learning  environments                                                              
is what the charter  school movement is about.  The Alaska charter                                                              
school  statute was  created to  encourage educational  innovation                                                              
and provide choice  for Alaskan families within  the public school                                                              
system. She  understood that the  funding formula was  designed to                                                              
discourage a  proliferation of small  schools; however it  has had                                                              
some unforeseen  consequences that  limit the innovation  that the                                                              
law was supposed to promote.                                                                                                    
                                                                                                                                
MS.  TAYLOR  said  there  are several  good  reasons  for  charter                                                              
schools to  be under 150 students.  One reason is  factors outside                                                              
of  the  school's  control, which  happened  for  Bethel's  Yup'ik                                                              
Immersion School  where several parents were deployed  in Iraq and                                                              
their  families moved  to  Anchorage. The  school  went below  150                                                              
students and  lost hundreds of thousands  of dollars as  a result.                                                              
Schools that lose funding like that run the risk of closing.                                                                    
                                                                                                                                
A  second  reason  for  schools   to  be  below  the  150-stendent                                                              
threshold  is if  the  student population  they  are targeting  is                                                              
less than  150 kids. A  third reason is  that the school  district                                                              
can't support a  charter school of more than  150 students without                                                              
having  an adverse  impact on  its neighborhood  schools which  is                                                              
what is happening  with Fireweed.  The fourth reason  is that some                                                              
children really need small learning environments.                                                                               
                                                                                                                                
2:29:19 PM                                                                                                                    
MS. TAYLOR  said it's important  to recognize that a  small school                                                              
is  a  good  educational  tool  that  the  school  districts  also                                                              
appreciate  having.  She wanted  to  clarify  that when  they  say                                                              
small schools  they mean entire  enrollment of the school  and not                                                              
just  the class  size. A  small environment  allows for  multi-age                                                              
classes of grades  K-1, 2-3 and 4-5 for two years  in a row. Small                                                              
size  is  a great  educational  asset,  but  it  is also  a  great                                                              
financial liability.  They get 30 percent less  state funding than                                                              
any other school in the state outside of correspondence schools.                                                                
                                                                                                                                
2:32:47 PM                                                                                                                    
JCCS has been able  to scrape by for 11 years  with penny pinching                                                              
and  volunteer  hours, but  not  having  funding keeps  them  from                                                              
reaching  some of the  more diverse  families  they would  like to                                                              
reach. The barriers  to that diversity are lack  of transportation                                                              
and not  enough funds to  pay for support  staff like  a counselor                                                              
or a nurse. They would appreciate more equitable funding.                                                                       
                                                                                                                                
CHAIR STEVENS  said he asked the  department to come up  with some                                                              
options  and they  came up  with  about $100,000  for her  school.                                                              
Would she support that?                                                                                                         
                                                                                                                                
2:34:34 PM                                                                                                                    
MS. TAYLOR replied that would be great.                                                                                         
                                                                                                                                
CHAIR STEVENS  ask her to  explain in more  detail what  she meant                                                              
about charter schools targeting certain students.                                                                               
                                                                                                                                
MS.  TAYLOR  replied that  she  was  talking about  two  different                                                              
kinds of  groups. They would  like to have  more free  and reduced                                                              
lunch  students -  the ones  that  are in  a lower  socio-economic                                                              
status. These  are also the ones  that can't drive  their children                                                              
to school; so they would also want transportation for them.                                                                     
                                                                                                                                
Secondly, she  said they  would like help  with the  principals in                                                              
finding  which students  match well  with charter  schools -  kids                                                              
who are  hands-on learners,  for  instance, and  have a hard  time                                                              
sitting at  a desk, but  flourish in doing  more arts  and science                                                              
centered activities.  If a  parent came to  a principal  and asked                                                              
for  a different  opportunity, for  instance, and  they could  see                                                              
the  charter  school not  in  competition  with  the rest  of  the                                                              
district, but as a different option.                                                                                            
                                                                                                                                
2:36:33 PM                                                                                                                    
CHAIR  STEVENS  asked if  JCCS  works  through the  Juneau  School                                                              
Board.                                                                                                                          
                                                                                                                                
MS.  TAYLOR replied  that the  school board  is in  charge of  its                                                              
charter and  it just  got renewed for  another eight  years. Every                                                              
year  its  contract has  to  be  approved  and that  is  primarily                                                              
centered  around  proving  academic  success  and  that  they  can                                                              
survive with the amount of money they get.                                                                                      
                                                                                                                                
SENATOR HUGGINS  said charter schools  run a gauntlet  in renewing                                                              
their  contracts every  year, which  is a healthy  process  and he                                                              
remembered a  couple in Anchorage  that didn't make it.  "They are                                                              
held to a very  high standard that is unique to  charter schools -                                                              
that you have to have a contract renewed."                                                                                      
                                                                                                                                
2:39:01 PM                                                                                                                    
MS.  TAYLOR said  their administration  costs are  6.9 percent  of                                                              
their funding.                                                                                                                  
                                                                                                                                
MR.  NEUMAN said  the JCCS  pays $60,000  for rent  to occupy  the                                                              
basement of a  privately owned building. It has  no playground, no                                                              
gymnasium,  no  teachers' lounge,  no  cafeteria  and  not even  a                                                              
lobby. They  want to  stay downtown  to have  access to  the civic                                                              
and cultural opportunities.                                                                                                     
                                                                                                                                
He said  the facility  issue is  faced by  charter schools  around                                                              
the country  and often aren't able  to participate in  the bonding                                                              
process. He said  JCCS doesn't have a gymnasium, but  there is one                                                              
just two blocks  away in the Terry Miller Building  that is unused                                                              
all day.  Right now their  kids have to  do physical  education in                                                              
an  empty classroom  or outside  no  matter what  the weather.  He                                                              
asked if someone could help them with that.                                                                                     
                                                                                                                                
CHAIR  STEVENS said  he  envisioned  having problems  with  people                                                              
being able  to work on the  next floor with basketballs  going all                                                              
day.                                                                                                                            
                                                                                                                                
2:42:17 PM                                                                                                                    
MR.  NEUMAN  responded  that  there   are  things  like  yoga  and                                                              
meditation that don't have a lot of noise.                                                                                      
                                                                                                                                
He  said that  a  comprehensive  approach  to charter  schools  is                                                              
needed, but  more immediately three  small schools  are struggling                                                              
to stay alive.  Part of the  reason that more new  charter schools                                                              
aren't being  created is because  of the 150-student  threshold. A                                                              
quick way to address that is through a more equitable formula.                                                                  
                                                                                                                                
CHAIR STEVENS  suggested that  he talk to  Senator Cowdery  who is                                                              
the chairman  of Legislative Council.  He saw problems  with using                                                              
the gym during  the work day, but  maybe there was a  time the gym                                                              
could be used.                                                                                                                  
                                                                                                                                
2:44:07 PM                                                                                                                    
MS.  TAYLOR  said the  small  charter  school grant  that  Senator                                                              
Huggins has  helped them  with each  year is a  boon to  them, but                                                              
the money  doesn't get divvied up  until January or  February when                                                              
the  year is  almost  done  and it  has  to be  spent  by May.  It                                                              
doesn't encourage great budgetary planning.                                                                                     
                                                                                                                                
CHAIR STEVENS  agreed that they need  to move beyond just  a band-                                                              
aid approach.                                                                                                                   
                                                                                                                                
MISTY  HAMILTON,   Chairman,  Academic  Policy   Committee  (APC),                                                              
Kaleidoscope  Charter  School  of  Arts  and  Science  located  in                                                              
Kenai,  said  Kaleidoscope  was  established four  years  ago  and                                                              
began as a 1-3  grade for 88 students. Next year it  will be a K-6                                                              
program with 234 students.                                                                                                      
                                                                                                                                
She said  the mission  of Kaleidoscope  is to develop  responsible                                                              
citizens  and life-long  learners.  All subjects  are taught  with                                                              
rigor and  depth and are carefully  interwoven to  create meaning.                                                              
Teachers plan  collaboratively. There is  an emphasis on  arts and                                                              
science. All  subjects are  put together by  theme and have  a lot                                                              
of parent  involvement. Students  are enthusiastic,  have  a sense                                                              
of ownership and grow quickly.                                                                                                  
                                                                                                                                
2:48:41 PM                                                                                                                    
CHAIR STEVENS asked if she has transportation assistance.                                                                       
                                                                                                                                
MS.  HAMILTON replied  that they  have chosen  to provide  bussing                                                              
for their students through the school's funding.                                                                                
                                                                                                                                
JEFF  FRIEDMAN,  Anchorage  School  Board,  said  the  150-student                                                              
limit is a  serious challenge. Two Anchorage charter  schools have                                                              
closed  and dropping  below that  limit was  the most  significant                                                              
factor for  both. Startup is  also difficult because  people don't                                                              
want to sign  up until they see  it is successful and  it can't be                                                              
successful  without  reaching  the 150-student  mark.  So,  adding                                                              
flexibility  at the  beginning of  a new  charter would  be a  big                                                              
help.  In  Anchorage  getting  facilities  has  been  the  largest                                                              
problem facing  charter schools.  Rented  facilities have  to meet                                                              
the  same educational  building codes  that other  schools do  for                                                              
things like sprinklers  and fire exists. Landlords  hesitate to do                                                              
that kind  of remodeling for  a school  until they see  it's going                                                              
to be successful.                                                                                                               
                                                                                                                                
CHAIR STEVENS  asked him to  review the board's  relationship with                                                              
charter schools.                                                                                                                
                                                                                                                                
2:51:33 PM                                                                                                                    
MR. FRIEDMAN  said the  board reviews  the initial charter  school                                                              
applications;  they  have a  work  session  with those  trying  to                                                              
start a school and  then have a formal board hearing  in which the                                                              
application  is  approved  or  rejected.   Sometimes  the  charter                                                              
school works  with the association for  a few years to  prepare an                                                              
application.  The  board  reviews their  charter  financially  and                                                              
academically every year.                                                                                                        
                                                                                                                                
CHAIR STEVENS  asked if  he had an  opportunity to target  certain                                                              
groups would  he create opportunities  for smaller schools  - like                                                              
a language academy or a music school.                                                                                           
                                                                                                                                
MR.  FRIEDMAN  replied  that  Anchorage  has  a  German  immersion                                                              
school and they  wouldn't want those to be smaller.  He saw a role                                                              
for  targeting  at-risk high  school  students  who might  need  a                                                              
smaller  school. But  for the  most part,  neither the  department                                                              
nor school  boards would  allow broadly opening  a huge  number of                                                              
small  schools  just  to  be small,  because  for  one  thing,  it                                                              
wouldn't be fiscally responsible.                                                                                               
                                                                                                                                
2:54:12 PM                                                                                                                    
SENATOR DAVIS asked  if starting a charter school  requires having                                                              
at least 150 students.                                                                                                          
                                                                                                                                
MR. FRIEDMAN replied  that number is not a  technical requirement,                                                              
but as  a practical  matter, the  funding level  is so  different,                                                              
that he didn't think any school could start below that.                                                                         
                                                                                                                                
SENATOR OLSON  said a  23rd charter  school is  coming on  line in                                                              
the next year and asked if it has more than 150 students.                                                                       
                                                                                                                                
MR.  FRIEDMAN answered  that he  thought  it would  have over  150                                                              
students.                                                                                                                       
                                                                                                                                
2:55:39 PM                                                                                                                    
KIKI  ABRAHAMSON,  Fireweed  Academy,   Homer,  said  the  charter                                                              
school  movement came  out  of "No  School  Left  Behind" and  can                                                              
document successes  nationally as well as statewide.  It is a good                                                              
way to  provide choice  and promotes  innovation in education  and                                                              
keeps public education money in the public schools.                                                                             
                                                                                                                                
On  the flip  side,  charter schools  have  to meet  achievements,                                                              
follow  all the  district, state  and federal  policies, laws  and                                                              
regulations without  any facility provisions  and, in the  case of                                                              
small  charter  schools,  with inequitable  funding.  She  thought                                                              
that  ethical   and  legal  issues   must  be  brought   into  the                                                              
conversation  at this  point. If  they follow  all these laws  and                                                              
take  part in  the same  tests and  hold  teachers accountable  to                                                              
same standards,  are the  charter schools  really public  schools?                                                              
How does  it make sense  that they are  not provided  equal access                                                              
to facilities along with equal funding?                                                                                         
                                                                                                                                
MS. ABRAHAMSON  said she  was confused  about how charter  schools                                                              
funding  provisions read.  They say  all charter  schools will  be                                                              
funded in  the same  manner as  other schools,  but then  they are                                                              
not.  The law  needs to  reflect  the intent  of legislators.  She                                                              
said she  appreciated all the work  they are doing on  this issue,                                                              
but  charter  schools have  been  getting  the  short end  of  the                                                              
stick.                                                                                                                          
                                                                                                                                
3:00:42 PM                                                                                                                    
CHAIR STEVENS  said he has  asked the department  for suggestions.                                                              
One of  them was  state aide  for Fireweed  Academy would  go from                                                              
the current $538,000 to $631,000.                                                                                               
                                                                                                                                
MS. ABRAHAMSON responded that she would support that.                                                                           
                                                                                                                                
CHAIR STEVENS  said it looks  like it would  raise it to  the 1.08                                                              
level.                                                                                                                          
                                                                                                                                
MS. ABRAHAMSON  said she would be  in favor of that, but  it still                                                              
isn't equitable.                                                                                                                
                                                                                                                                
3:02:39 PM                                                                                                                    
ANNMARIE KEEP-BARNES,  President, Academic Policy  Committee, Star                                                              
of the  North Secondary  School, Fairbanks,  said that  her school                                                              
has 7-12  graders. It is chartered  to intervene for  students who                                                              
are in  danger of  academic failure  or not  achieving their  high                                                              
school diploma and  has 200 students. It is doing  really well and                                                              
has a good relationship  with their school district.  They get the                                                              
additional funding,  but in her case almost all  of the additional                                                              
funding goes into  facilities. They provide  public transportation                                                              
for her students where needed between their two campuses.                                                                       
                                                                                                                                
She  said her  life's work  is working  with students  who are  in                                                              
academic danger and  may be disengaged for whatever  reason. Every                                                              
community has  a percentage of young  people who are not  going to                                                              
fit   into  the   traditional  school   model   and  the   smaller                                                              
populations won't be able to pull the 150 students.                                                                             
                                                                                                                                
3:07:15 PM                                                                                                                    
She  said each  of her  district's three  charter schools  contain                                                              
about 1 percent of the school district's population.                                                                            
                                                                                                                                
CHAIR STEVENS asked how her school got started.                                                                                 
                                                                                                                                
MS. BARNES  replied that she  helped start Chinook  Charter School                                                              
and  had thoughts  about  what she  would  do  differently if  she                                                              
would  open another  one. She  took over  an existing  alternative                                                              
program in North  Pole for a couple of years and  when that was in                                                              
danger  of closing,  she closed  it and  opened it  up again  as a                                                              
charter school.  It was  inspired by the  needs that  the teachers                                                              
saw.                                                                                                                            
                                                                                                                                
3:09:36 PM                                                                                                                    
SENATOR  OLSON asked  what she  is  doing for  these students  and                                                              
what her success rate is.                                                                                                       
                                                                                                                                
MS.  BARNES  replied  her 200-student  school  has  four  distinct                                                              
programs. One  is a 7-8 grade  program with 40 students.  They are                                                              
really beating  the bushes  in North Pole  to let people  know the                                                              
school  wants to  intervene  for  kids. That  program  is a  close                                                              
knit,  family  centered  middle   school  that  teaches  to  their                                                              
spirits as  well as  their minds.  Their ninth-grade  intervention                                                              
program goal  was to  take 20  students and  make sure  they ended                                                              
the year with all  six credits and that has been  very successful.                                                              
This  program was  started because  predictably  students who  are                                                              
failing their ninth  grade year will fail in high  school. So they                                                              
give  them a  solid ninth  grade  year based  on their  interests,                                                              
gifts  and talents.  Both of  their  campuses have  a 10-12  grade                                                              
program and graduate  about 70 students per year -  kids who would                                                              
not have earned high school diplomas without them.                                                                              
                                                                                                                                
3:12:23 PM                                                                                                                    
DANA  HANDELIN,  Academic  Policy   Committee  (APC),  Anvil  City                                                              
Science  Academy, Nome,  agreed  with the  previous comments.  Her                                                              
contract with  the school limits  their enrollment to  44 students                                                              
based on the  physical space the district can  provide. An average                                                              
of  11  students  is  usually  on   the  waiting  list,  which  is                                                              
troubling, because  their limited  number of students  also limits                                                              
the funding.                                                                                                                    
                                                                                                                                
CHAIR STEVENS asked if she is working with a target group.                                                                      
                                                                                                                                
MS. HANDELIN replied  yes; their program is 5-8  grade and focuses                                                              
on science and technology.                                                                                                      
                                                                                                                                
CHAIR STEVENS asked if they provide transportation.                                                                             
                                                                                                                                
3:14:59 PM                                                                                                                    
MS.   HANDELIN  replied   that   the  school   district   provides                                                              
transportation.                                                                                                                 
                                                                                                                                
CHAIR STEVENS asked how long she has been in this position.                                                                     
                                                                                                                                
MS.  HANDELIN answered  that she  had been  on the  APC Board  for                                                              
four years and has  two children in the program;  one is attending                                                              
Mt. Edgecumbe as a ninth grader.                                                                                                
                                                                                                                                
3:15:49 PM                                                                                                                    
DAVE  JONES,  Assistant Superintendent,  Kenai  Peninsula  Borough                                                              
School  District  (KPSD),  said  his  district  has  four  charter                                                              
schools  and he  supports them  because  they provide  alternative                                                              
choices   for   students.   They    have   all   been   successful                                                              
academically. Three  of them are above the 150  student level, but                                                              
Fireweed Elementary in Homer is not.                                                                                            
                                                                                                                                
He  said basically  the statute  requires  inequitable funding.  A                                                              
possible  solution  to  the  small  school problem  is  to  put  a                                                              
historical  component  into  the requirements  that  says  schools                                                              
smaller than 150  students could be counted as  a separate school.                                                              
This would  not address  the startup  concerns.  He said the  KPSD                                                              
offers  transportation to  the charter  schools;  they can  either                                                              
opt in  or opt out  of riding  the same buses  used for  the other                                                              
schools. If  they opt  in, they  have to share  in the  cost; they                                                              
also share any deficit at the end of the year.                                                                                  
                                                                                                                                
3:19:08 PM                                                                                                                    
SENATOR  HUGGINS  said he  thought  charter schools  were  grouped                                                              
with  district students  and therefore  the funding  would be  the                                                              
same.                                                                                                                           
                                                                                                                                
MR.  JONES  replied  that  the charter  school  statutes  say  any                                                              
schools  under 150  students are  put into the  size factor  chart                                                              
with the largest  school in the district. In his  district that is                                                              
Soldotna High  School; so it  is funded  at that size.  West Homer                                                              
Elementary students are at different levels.                                                                                    
                                                                                                                                
CHAIR  STEVENS  said  the  department  prepared  two  options  for                                                              
school  financing.  One  option  is to  increase  state  aide  for                                                              
schools to  1.08, which  the statute would  apply to  schools with                                                              
150-250  students.  Another option  is  to  increase it  to  1.27,                                                              
which would apply to schools of 75-150 students.                                                                                
                                                                                                                                
CATHERINE  REARDON, staff  to Senator  Joe Thomas,  said she  also                                                              
has  two children  in  the JCCS  and has  served  on its  Academic                                                              
Policy Committee.  She said  the APCs are  the governing  board of                                                              
the schools and it is elected by the parents.                                                                                   
                                                                                                                                
3:23:04 PM                                                                                                                    
She  said that  Alaska's  charter school  law  has some  strengths                                                              
that other state  don't necessarily share like  requiring that the                                                              
charter schools  be part  of their local  school district  and get                                                              
their  approval. It  does mean  that  the education  that all  the                                                              
kids  get  is unified  at  that  level.  It  also means  that  the                                                              
charter school  teachers and other  employees are  school district                                                              
employees.  They have  the  same collective  bargaining  contracts                                                              
and government is doing the bookkeeping.                                                                                        
                                                                                                                                
The reason  Senator Thomas introduced  a bill that put  funding at                                                              
the 1.27  level is  because the  Effie Kokrine  Charter School  in                                                              
his  district  dropped  below  150 students  last  year  and  lost                                                              
several  thousand dollars.  That was  a problem  not only  for the                                                              
school that  suddenly had  to reduce its  program and  didn't know                                                              
until the  October count that it  was 10 students under,  but also                                                              
for the district that is left holding the bag financially.                                                                      
                                                                                                                                
MS. REARDON said  it comes down to "the cliff" she  referred to in                                                              
a chart  that she  made on  school size.  Senator Thomas'  idea in                                                              
using 1.27 was  that the regular school-size factor  would be used                                                              
above  150 students,  but  below  150 you  wouldn't  get into  the                                                              
situation  where  you  have  a 10-kid  school  and  get  basically                                                              
almost four  kids worth of  money for each  kid. If you went  to a                                                              
level that  was reasonable for the  state to fund, that  the state                                                              
is now  funding, that  would mean  that the  cliff wouldn't  be so                                                              
steep  and  you  would have  equitable  funding  and  perhaps  not                                                              
excessive funding.                                                                                                              
                                                                                                                                
CHAIR STEVENS asked where the bill is.                                                                                          
                                                                                                                                
MS. REARDON  replied that  it is in  the Senate Finance  Committee                                                              
where it hasn't  had a hearing. She explained that  the 1.27 level                                                              
is  about the  amount  per  kid that  is  being provided  now  for                                                              
schools of at least  250 students. The way she got  to that figure                                                              
is by  looking at the  base amount in  the school size  factor and                                                              
the multiplier  and took  into account  the fact  that there  is a                                                              
large base amount being provided for bigger schools.                                                                            
                                                                                                                                
CHAIR STEVENS  said he  wanted to  get the  bill referred  to this                                                              
committee so they could look at it.                                                                                             
                                                                                                                                
3:28:58 PM                                                                                                                    
MS.  REARDON  summarized that  the  goal  should  be not  to  fund                                                              
charter  schools at  a higher  level  than other  schools, but  to                                                              
decide what level  the legislature is willing to  fund schools and                                                              
apply  that  principle to  charter  schools,  as  well -  and  not                                                              
penalize  districts for  having  charter schools  by lowering  the                                                              
amount of state funding that is provided when they have them.                                                                   
                                                                                                                                
3:29:52 PM                                                                                                                    
SENATOR  HUGGINS said  it  is very  difficult  to compare  charter                                                              
school funding with  the funding for a school of  250 because that                                                              
is not what actually  goes to the school. Charter  schools have to                                                              
pay for overhead,  too. That is the difference for  the most part.                                                              
The amount per student can't be calculated based on the formula.                                                                
                                                                                                                                
MS.  REARDON  responded  that  in   Juneau,  overhead  is  at  6.9                                                              
percent.                                                                                                                        
                                                                                                                                
3:31:05 PM                                                                                                                    
BONNIE JASON, teacher  at Homer Middle School, said  she has had a                                                              
child at both the  Fireweed Academy and the Middle  School and had                                                              
a  slightly different  perspective  to  offer. She  said  Fireweed                                                              
Academy is competing  for space with the neighborhood  schools. If                                                              
it grows  to the  150-number  in the next  few years  as they  are                                                              
being  forced to  do, those  students would  have to  come at  the                                                              
expense of  the other  neighborhood schools.  Homer Middle  School                                                              
would stand  to lose 30 or more  students out of their  fewer than                                                              
200 projected  students. That  would be more  than one  full staff                                                              
position  and  the  negative  impact on  their  program  which  is                                                              
already bare bones "would be monstrous."                                                                                        
                                                                                                                                
3:32:45 PM                                                                                                                    
CHAIR STEVENS  said he appreciated  her courage in  coming forward                                                              
with that.  He asked how  she felt about  changing the  funding of                                                              
the smaller schools.                                                                                                            
                                                                                                                                
MS. JASON  replied that  she would  be very  supportive; she  is a                                                              
huge proponent  of their  program even though  she has  watched it                                                              
deteriorate over the past few years.                                                                                            
                                                                                                                                
CHAIR  STEVENS  thanked  her  for her  comments.  There  being  no                                                              
further business  to come before  the committee, he  adjourned the                                                              
meeting at 3:34:05 PM.                                                                                                        

Document Name Date/Time Subjects