HB 69-EDUCATION FUNDING: INCREASE BSA  4:55:35 PM CHAIR TOBIN announced the consideration of CS FOR HOUSE BILL NO. 69(RLS) am "An Act relating to education; relating to open enrollment in public schools; relating to school and student performance reports; relating to school and district accountability; relating to charter schools; relating to an annual report for correspondence study programs; relating to the base student allocation; relating to reading proficiency incentive grants; relating to wireless telecommunications devices in public schools; relating to the duty of the legislature to pass a public education appropriation bill; relating to the duty of the governor to prepare a public education appropriation bill; establishing the Task Force on Education Funding; relating to a report on regulation of school districts; and providing for an effective date." 4:56:10 PM MIKE MASON, Staff, Senator Löki Tobin, Alaska State Legislature, Juneau, Alaska, offered an explanation of changes for Senate committee substitute (SCS) for CSHB 69, version S. He said funding for Alaska's education system has not kept up with inflation and simultaneously there is a teacher and professional staff shortage nationwide. By not funding Alaska's education system students are shortchanged academically and economically. HB 69 would provide Alaska's education system with a significant investment of resources. He noted that data is very clear that there is a strong correlation between increased funding and improved student test scores. Every $1,000 per pupil increase in instructional expenditures results in a two-percentage point increase in reading proficiency and a one-percentage point increase in math proficiency. 4:58:04 PM MR. MASON said HB 69, version S, maintains the $1000 Base Student Allocation (BSA) increase. The BSA supports all forms of public education. The BSA helps maintain school buildings, reduce class sizes, and provides better programs. He highlighted that HB 69, version S, amends the statute governing the Alaska Workforce Investment Board requiring the board to partner with Alaska Post Secondary Education, school districts, and the Alaska Department of Education and Early Child Development. 4:59:18 PM MR. MASON said HB 69, version S, retains a cell phone ban and a provision to make starting a charter school easier. A class size reduction policy was added to the bill and Senator Kiehl is working on language to address the local contribution issue. The bill also contains provisions to clarify, modify, and expand Alaska's open enrollment system and reading proficiency grants. There is also language to track student's post-secondary education. A final highlight was the task force on education funding that HB 69, version S, authorizes. The task force will analyze the state of education funding and the current accountability provisions for schools and other factors such as chronic absenteeism and school major maintenance: [Original punctuation provided.] House Bill 69 Education: Funding, Schools, Devices Version S Explanation of Changes Section 1 Amends AS 14.03 to add a new section directing school districts to adopt a target average class size policy for each grade level. Maximum class sizes are set for grades pre-K through sixth grade and seventh through twelfth grade. Districts may exclude non-essential courses and mixed-grade classes from the class size restrictions. Districts unable to meet the target class size limits, would be required to report why they were unable to meet the limits and how they plan to meet the limits in the future. Section 2 Amends AS 14.03.080 to direct districts to adopt an inter-district open enrollment policy. Districts must address the military status of parents or guardians, the placement of siblings, and the employment of parents or guardians. Districts must establish a procedure for appealing the denial of an enrollment application. Section 3 Directs district to public enrollment practices and policies. Section 4 Amends AS 14.03.080 by requiring the Department of Education and Early Development to report on student academic progress over time. Section 5 Amends AS 14.03.120 and directs DEED to publish class sizes for grades K through 12th grade. Section 6 Directs DEED to collaborate with the Alaska Department of Labor and Workforce Development to collect data on each high school graduating class every 5 years until 20 years after graduation. Section 7 Establishes a student academic improvement recognition program. Section 8 Reduces the time the Alaska State Board of Education and Early Development is required to review a charter school application appeal. Section 9 Conforming language for section 11. Section 10 Adds a new subsection under AS 14.03.255 to allow a school board to establish a simplified renewal process for a charter school in good standing. Section 11 Adds a new section under AS 14.03 regarding appeal procedures for a charter school contract. The language mirrors administrative law governing contracts. Section 12 Amends AS 14.03.260 to allow a school district to apply an indirect administrative cost rate for a charter school for actual accrued administrative costs or up to eight percent, whichever is less. Section 13  Extends the report on correspondence study programs that was set to expire on July 1, 2025. Section 14 Conforming language for section 15. Section 15 Amends AS 14.03.310 to provide an allotment to a student enrolled in a correspondence program who participates in a state standards-based assessment, alternative assessment, or provides a student portfolio based on criteria established by DEED. Section 16 Conforming language to section 13.   Section 17 - Conforming language to section 13, based on the Alaska Reads Act repeal in 2034. Section 18 Conforming language to section 19. Section 19 Amends AS 14.17.410 by adding a new subjection to allow a city or borough school district to support non-classroom related activities permitted by federal guidance. Section 20 Increases the base student allocation by $1,000. Section 21 Conforming language related to inter- district open enrollment policies by permitting a child over age 16 to attend a school chosen by the student's parent or guardian. Section 22 Conforming language relate to inter- district open enrollment policies by permitting a child who receives services under a 504 special education plan to attend a school of their parent or guardian's choice. Section 23 Conforming language related to section 22. Section 24 Provides reading proficiency grants for non-Kindergarten ready students, Kindergarten through third grade students who are not reading at grade level, and kindergarten through third grade students who are reading at grade level. Grants are subject to appropriation. Section 25 Amends AS 14.33 by adding a new section that directs districts to adopt a wireless telecommunications device policy. Section 26 Directs the Alaska Workforce Investment Board to work with the Alaska Commission on Postsecondary Education and DEED to develop a statewide policy for coordinated and effective technical and vocational education training including offering each high school student an opportunity to take a career or college entrance exam or assessment. The section also requires the creation of a recognition program for high schools that achieve a 90 percent assessment rate. Section 27 Conforming language to section 6. Section 28 Allows DEED to adopt correspondence programs in regulation. Section 29 Removes the exemption from complying with AS 14.17.505 for unobligated allotment funds. Section 30 Establishes a Task Force on Education Funding to review and recommend education reforms. The task force's report will be due January 31, 2027. Section 31 Amends uncodified law to add a new section with applicability language noting that sections 8-12 apply to a contract that becomes legally binding on or after the effective date of sections 8- 12 of this act. Section 32 Conforming language for section 13 regarding the repeal of the Alaska Reads Act in 2034. Section 33 Sets a July 1, 2025, effective date for the act. 5:03:16 PM CHAIR TOBIN noted that the committee also retained and amended a particular section of the bill that was added on the House floor. Also, there was a change made offered by Senator Bjorkman concerning tracking academic performance. Some components that were added on the House floor were retained and expanded to allow districts to create a recognition program for schools that show case academic growth at 75 percent or above of all students. 5:03:43 PM MR. MASON stated those changes occur in Section 4, which amends AS 14.03.080 requiring the Department of Education and Early Development (DEED) to report student academic progress over time. 5:03:58 PM CHAIR TOBIN solicited a motion. SENATOR STEVENS moved to adopt the Senate committee substitute (SCS) for CSHB 69, work order 34-LS0309\S, as the working document. 5:04:16 PM SENATOR BJORKMAN objected to offer Conceptual Amendment 1. 5:04:18 PM CHAIR TOBIN solicited a motion. 5:04:22 PM SENATOR BJORKMAN moved to adopt Conceptual Amendment 1. CONCEPTUAL AMENDMENT 1   Insert New Section: Section 32. Section 15 of this Act takes effect on July 1, 2026. Renumber following sections accordingly. 5:04:24 PM CHAIR TOBIN objected for purposes of discussion. 5:04:27 PM SENATOR BJORKMAN offered Conceptual Amendment 1, to insert a new Section 32 that delays the effective date of Section 15, making it effective on July 1, 2026. Legislative Legal Services was authorized to make technical and conforming changes. SENATOR BJORKMAN stated the reason for the delayed effective date is to provide time for people to adjust and understand the provision so no homeschool student goes without an allotment that is expected for the next school year. He commented he has general concerns about the provision. 5:05:42 PM CHAIR TOBIN removed her objection; she found no further objection and Conceptual Amendment 1 to the SCS CSHB 69 was adopted. 5:05:55 PM CHAIR TOBIN asked if Senator Bjorkman maintained his objection to the adoption of SCS CSHB 69 as the working document. 5:05:59 PM SENATOR BJORKMAN removed his objection. 5:06:03 PM CHAIR TOBIN found no further objection and SCS CSHB 69, as amended, was adopted. 5:06:20 PM CHAIR TOBIN solicited a motion. 5:06:22 PM SENATOR STEVENS moved to report SCS CSHB 69, work order 34- LS0309\S, as amended, from committee with individual recommendations and attached fiscal note(s) and the needed title change resolution. 5:06:40 PM CHAIR TOBIN found no objection and SCS CSHB 69(EDC) was reported from the Senate Education Standing Committee.