HB 199-FUNDING FOR STATE BOARDING SCHOOLS  9:26:18 AM CHAIR DICK announced that the final order of business would be HOUSE BILL NO. 199, "An Act amending the funding for statewide residential educational programs." [In front of the committee was Version B] SHEILA PETERSON, Staff, Representative Alan Dick, Alaska State Legislature, recapped that HB 199 would double the monthly stipend amount provided to the boarding schools in three school districts. She relayed that this increase would be in effect for two years, to allow for all interested parties to further discuss ways to deliver high school education in rural Alaska. 9:30:02 AM ELIZABETH SWEENEY NUDELMAN, Director, School Finance and Facilities Section, Department of Education and Early Development (EED), offered to answer any questions on the fiscal note. 9:30:29 AM REPRESENTATIVE P. WILSON asked if the amounts listed in the bill for each region reflected the proposed increase. 9:31:19 AM MS. NUDELMAN explained that the stipends listed in HB 199 were for all the state regions, but would only apply to the three schools in the program. In response to Representative P. Wilson, she clarified that Mt. Edgecumbe High School was funded by "a separate funding stream through the department." 9:32:47 AM CHAIR DICK clarified that the stipends listed in the proposed bill reflected the doubled amount. 9:33:03 AM CHAIR DICK asked to clarify that the proposed bill only applied to Bethel, Galena, and Nenana schools. He noted that other districts would also like to participate in the stipend increase, and he asked for a financial projection for this increase, as well. 9:33:22 AM MS. NUDELMAN, referring to the statute, stated that the program was available to "a district that existed January 1, 2005." She pointed out that there were three programs approved under the statute. She further explained that the statute regulations established a period of open applications, and that, currently, EED did not have a projection for when applications would be opened or what the cost would be to the state. 9:34:24 AM REPRESENTATIVE SEATON referred to the Alaska Administrative Code, AAC 33.090(c). [Included in members' packets] He pointed out that "when the department determines that establishment of additional programs are warranted, they can open those things, but our statute currently does not allow them to do anything." He noted that applications could be taken, but not instituted, as the funding formula was only for those schools formed prior to January 1, 2005. He stated that he would offer a conceptual amendment to allow EED to accept applications for three additional programs after July 1, 2011. 9:35:32 AM REPRESENTATIVE P. WILSON read from AAC 33.090(d): "this section does not prevent a governing body from establishing an in- district residential educational program that is not eligible for state support for the operation of the residential aspects of the program." She asked if this could be done immediately. 9:35:51 AM REPRESENTATIVE SEATON agreed that the district could have a residential program, but that it currently would not receive any funding. 9:36:16 AM REPRESENTATIVE P. WILSON asked to identify the regions for Nenana, Galena, and Lower Kuskokwim. 9:36:39 AM CHAIR DICK offered his belief that Lower Kuskokwim was in the Southwest Region, and that Nenana and Galena were in the Interior Region. 9:36:47 AM MS. NUDELMAN offered her understanding that Lower Kuskokwim was in the Southwest Region, that Galena was in the Northern Remote Region, and that Nenana was in the Interior Region. 9:38:09 AM JERRY COVEY, JSC Consulting LLC, stated his support for HB 199, and that he was convinced that this was an appropriate action, as the districts were currently operating on a deficit mode. He said that he had worked on rural and statewide education issues for many years. He agreed with an earlier statement for the necessity to immediately study rural education. He referred to a report he had submitted to all the committee members, "A Time for Change Improving Educations Delivery for Alaska's Small Rural High Schools," [Included in members' packets] which addressed the issues critical to the success of small rural high schools. 9:40:42 AM ERIC GEBHART, Superintendent, Nenana City School District, provided a PowerPoint, "Nenana Student Living Center," to highlight the Nenana Student Living Center (NSLC) enrollment and capacity statistics and to list the communities it served. The final slide illustrated a follow-up report on the 93 NSLC graduates. He stated that he supported HB 199. He pointed out that the original request had been for triple the current stipend amount. 9:44:05 AM REPRESENTATIVE P. WILSON asked how the extra stipend money would be used. 9:44:24 AM MR. GEBHART replied that it was not extra money, as the deficit was currently being paid through local and foundation support. He stated that, in addition to maintaining the current academic program, additional services would also be offered. REPRESENTATIVE P. WILSON asked if there would be more programs. MR. GEBHART said that there would be more programs. 9:45:10 AM TERESA MAYRAND, President, Nenana City School Board, pointed out that many of the students were very involved in the community. She stated her support of HB 199. 9:47:03 AM DORENE LORENZ, Friends of the Jesse Lee Home, said that this proposed bill would allow funding for a statewide residential leadership charter school for one semester of the junior year for 200 students. She stated support for the amendment that would be offered to allow further schools. 9:49:13 AM BOB CRUMLEY, Superintendent, Chugiak School District, stated support for HB 199, and said that there was a great need for these schools. He expressed a desire for this bill to provide funding for the short term, grassroots, vocational residential programs which met many student needs in rural Alaska high schools. He asked to be included in any future conversations regarding regional boarding schools. 9:52:56 AM JIM SMITH, Superintendent, Galena City School District, directed attention to the packet, "Galena City School District." [Included in members' packets] He referred to Exhibit A in the packet, and he reviewed the Galena Interior Learning Academy program and the challenges faced in rural Alaska education. He proceeded to Exhibits B and C, which mapped the home towns and home districts of the 53 students. He pointed out that Exhibit D was in response to a request for the 2010 Galena Interior Learning Academy graduates and their grade point averages. He explained that Exhibit E was a resolution reflecting the wide spread, community support for the Galena Interior Learning Academy. He directed attention to Exhibit F, which was a response to the questions regarding the funding. He stressed that this was a 24 hour per day service and included feeding and care of the students, while only a third of the cost was being funded by the state. He clarified that the school was in the Interior Region for funding purposes. 9:58:01 AM REPRESENTATIVE P. WILSON asked what percentage of the budget was used for utilities and insurance. 9:58:38 AM MR. SMITH replied that the utilities cost about $1 million annually, and the insurance cost about $260 thousand annually, as part of the $10 million budget. 9:58:57 AM REPRESENTATIVE P. WILSON asked if Galena Interior Learning Academy would prefer that the state pay the utilities and insurance, instead of doubling the stipend. 9:59:17 AM MR. SMITH replied that the food service and residential cost was about $3 million annually, so payment of utilities and insurance by the state would amount to about the same as the stipend request. 10:00:03 AM REPRESENTATIVE P. WILSON agreed that the stipend may need to be increased. She questioned if there was another means to support these programs that could include all schools. 10:01:29 AM CHAIR DICK stated that public testimony would remain open, and that the bill would be held over.