HOUSE BILL NO. 90 "An Act establishing a financial literacy education program for public schools; and providing for an effective date." 10:16:05 AM REPRESENTATIVE TED EISCHEID, SPONSOR, thanked the committee for hearing the bill creating financial literacy requirements for high school graduation. The bill required school districts to create a financial literacy program. He clarified that it was not necessarily a standalone course. 10:17:19 AM MEREDITH TRAINOR, STAFF, REPRESENTATIVE TED EISCHEID, did not have any remarks at the time. Representative Johnson thought back to her high school days. She was not necessarily opposed to the idea, but she wondered why a new requirement was needed. She did not want to get into piece meal-ing 100 different programs that was part of general education for schools. Representative Eischeid replied that as they looked at different education priorities in the state, for example, the Alaska Reads Act by the governor. He felt that it came down to equity. If they were important skills for individuals, everyone should have it. Representative Johnson stated it did not get to the point of why they should have a separate requirement. 10:22:50 AM Representative Eischeid clarified that the bill did not require a standalone course; it could be integrated into another lesson. There were many people who could calculate but they did not necessarily have financial literacy. He knew many people who had math skills but had not managed their financial lives well. Representative Johnson asked about the reason for the legislation. Representative Eischeid answered that if a person knew how to manage their money, they might be more successful in society. He remarked that the average credit card debt in Alaska was over $8,000, so with the education, he thought people would take action to avoid those kinds of financial pitfalls. When he had been empowered with the skills and knowledge he usually took appropriate actions. 10:26:09 AM Representative Tomaszewski liked the bill. He shared that he had been required to take an economics course. He did not want to take the class when he had been told he was required to; however, it ended up being his favorite and memorable class. He was happy to have taken the class and thought perhaps it was why he had been self-employed in his career. Representative Eischeid replied that the Anchorage School District provided the program for freshman and it was up to the school district how to deliver financial literacy. The equivalent of half a course over four years. Representative Tomaszewski did not want to put so much burden on school districts to have to do it annually. 10:29:35 AM Representative Hannan asked how many districts in Alaska already required a financial class for graduation. Representative Eischeid replied that he did not know. Representative Hannan clarified she thought it was overreach to tell a district it had to teach financial literacy. Her concern was having it be a requirement to graduate. 10:31:54 AM Representative Eischeid clarified that he had stated there were financial literacy issues in Anchorage and Fairbanks, and rural districts that may or may not have the ability to implement. Representative Hannan stated that he kept saying to the amount practicable. Representative Eischeid stated that kids who had transferred were not subject to the requirement. Representative Hannan thought it was an unfunded mandate on school districts. 10:36:19 AM Co-Chair Foster noted he would set an amendment deadline for Friday at 5:00 p.m. Representative Allard thanked her colleague from Juneau who was an expert as she had been a teacher for many years. She had addressed her concerns. Representative Eischeid answered that AML was not supportive of the bill, but other entities had supported it. He felt that one would assume with math education that people would understand financial literacy, but it was not the case. Ms. Trainor spoke to the fiscal note from the Department of Education and Early Development (DEED) with a cost of $76,000. 10:44:12 AM Representative Allard thought everyone should be treated the same and standards should be the same across the state. Representative Bynum asked Co-Chair Foster to repeat the amendment deadline. Co-Chair Foster replied that the deadline was Friday, May 16 at 5:00 p.m. Representative Bynum believed the topic was particularly important and he thought kids needed a better idea on what it meant to balance a checkbook and other issues. 10:48:39 AM Representative Eischeid clarified there was nothing in the bill that talked about checkbooks. He believed financial literacy was a priority and putting it in a bill reflected that. Ms. Trainor added that the office took a look at administrative code and the statute question. 10:51:39 AM Representative Bynum wanted more elaboration on the issues brought up by Representative Hannan about how to make a school district comply. Representative Eischeid stated he had been an educator for 25 years. He stated that change was hard. In each of the situations he had become a better teacher because it had forced him to change. He believed sometimes school districts should be pushed if it was important. 10:55:36 AM Representative Bynum stated his other concern related to chapter 30, which gave direction to school districts about how to apply the program. Representative Eischeid deferred to Legislative Legal Services. Representative Stapp did not think the bill went far enough. He thought it should be a three credit requirement. 11:00:37 AM Representative Eischeid appreciated the comments. He respected the sensitivity from other member comments and his goal was to find a balance to get the bill forward. Representative Stapp heard a lot about unfunded mandates, and he thought it depended on the topic how people seemed to feel. Representative Eischeid stated that the legislature funded schools and the bill would be a mandate; therefore, he viewed it to be a funded mandate. 11:03:54 AM Representative Jimmie was a little worried about the idea. She stated the idea was relevant and she appreciated the bill because she wanted children to succeed. She asked if there was a way to make the bill requirement not impact a student's grades. Representative Eischeid stated that the bill specified the topic should be taught, but he did not really know how to answer the question pertaining to grades. 11:06:20 AM Co-Chair Josephson asked if it was possible to do the class requirement in a couple of weeks. Representative Eischeid replied that he believed that the requirement could be completed in an intensive. Co-Chair Josephson found the number ludicrous, and stressed that there was some frustration about the cost of the program. Representative Eischeid felt that there was no way to make all parties happy. Representative Tomaszewski stressed that the state was supposed to be teaching kids to read. He outlined all the aspects of participating as an adult in the economy, such as opening bank accounts, holding an identification card, and applying for loans. 11:12:48 AM Representative Bynum thought that it would be an additional burden on school districts to implement this requirement. He asked about the reasoning for the department's involvement in the proposal. Representative Eischeid thought accountability was essential to the success of the program. Representative Bynum asked about any other items, besides the Alaska Reads Act, with the same obligation of Department of Education and Early Development (DEED). Representative Eischeid was not aware of anything. He deferred to Ms. Trainor. Ms. Trainor asked for a repeat of the question. Representative Bynum complied. He asked outside of the Reads Act whether there were any other programs required to be overseen by DEED. Ms. Trainor answered that what was in the bill was a middle ground between including it in AAC and statute. 11:18:46 AM Representative Hannan addressed comments by other committee members. She was consistent on education policies where something was mandated for graduation. Her primary objection to the bill was not about the content but about mandating a specific requirement to graduate. She did not think it was the legislature's role. 11:21:46 AM Representative Johnson stated her concerns were about the specifics of what would be taught in the class. She remarked about the possibility of influencing a mindset. She personally felt that teaching about managing debt took on a social position. Co-Chair Foster reiterated the amendment deadline. Representative Eischeid remarked on the robust discussion. He asked people to look at the bill again and explained that it was not a standalone course. The bill was an effort to teach about living within a person's means. HB 90 was HEARD and HELD in committee for further consideration. 11:25:47 AM AT EASE 11:29:57 AM RECONVENED