SPONSOR SUBSTITUTE FOR SENATE BILL NO. 149 "An Act relating to employment incentives for teachers and health care providers, to reemployment of retired teachers, to loans to and loan forgiveness for teachers and health care providers, to awards to teachers, to eligibility for major medical insurance coverage for beneficiaries of the teachers' retirement system, and to teacher certificates; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Senator Leman presented the legislation relating to a topic discussed by the Committee about finding incentives to improve the opportunity for hiring and rehiring teachers held at an earlier meeting. He noted when he first introduced this bill it included health care providers. However, he said it was decided in the Senate Health, Education and Social Services Committee to limit the scope to teachers, as well as deleting language that produced high fiscal notes. Senator Leman stressed the need for proactive measures required to obtain teachers. AT EASE 9:30 AM / 9:32 AM Senator Leman continued with his presentation noting that the bill now targets three items. PAUL ROETMAN, staff to Senator Leman detailed the three primary elements of the committee substitute. He listed the first as the recognition of credentials for out of state teachers, the second as an incentive for employment of retired teachers through an election option, and the third as improvement of medical coverage for current teachers. Mr. Roetman addressed incentives for out of state teachers as shown in Sections 1 and 2 of the committee substitute. He stated this steam lines the process by offering an Alaskan preliminary teaching certificate to an applicant with a valid teaching credential from any state, as well as clearance through a criminal background check. He noted that the preliminary teaching certificate holder would have to pass the existing competency exam within one year and complete Alaska studies within three years of receiving the certificate. He said these preliminary certificates could be issued for special education and other specialties as well. He remarked this procedure would make it easier for teachers to move to Alaska and quickly gain employment. He informed that a teacher, while employed under the preliminary teaching certificate, does not qualify for tenure. Mr. Roetman next spoke to the impact of the legislation on reemployment of retired teachers as described in Sections 3, 4 and 6. He explained the stipulations under which a school could declare a teacher shortage and subsequently hire a retired employee covered by the Teachers Retirement System (TRS). He detailed that a retired TRS employee could elect to continuation of retirement benefits upon re-employment as a teacher. He noted additional retirement benefits would not accrue and that the employee would receive only a salary. He qualified this re-employment option is not available for teachers, administrators or principals who retired under the Retired Incentive Plan (RIP) early retirement program. He also pointed out tenure could not be accrued by participants. Mr. Roetman stated that an annual report to the legislature is required under this legislation to allow monitoring of the impact of the re-employment of retired teachers on the retirement program itself. In addition, he noted, the retirement portion of the legislation has a three-year sunset clause in the event the teacher shortage situation changes. Mr. Roetman listed the third element of the legislation, which increases medical benefits to 100 percent coverage for a teacher who worked 25 years rather than 20 years. He stated current law provides for medical benefits on an age-determined basis only; a TRS member must be 65 years of age or older to begin receiving coverage. He commented the intent of this portion of the legislation is to increase retention of teachers by providing additional medical benefits available at an earlier age. Senator Hoffman asked if there are incentives for part-time teachers to help cover the teacher shortages. Mr. Roetman replied the incentives are for full time employment only. Senator Green asked the same question and Mr. Roetman affirmed his answer. AT EASE 9:37 AM / 9:39 AM Mr. Roetman corrected his earlier testimony and stated the retirement re-employment incentive extends to retirees who accept part time teaching employment as well as full time employment. MELISSA HILL, Alaska Teacher Placement Program, testified via teleconference from Oklahoma, that the Program is "on the front lines of recruiting". She told how the Program works with the 53 school districts in the state as well as teachers seeking information regarding employment in Alaska. Therefore, she surmised, the Program has a unique perspective on the teacher shortage both instate and nationally. Ms. Hill listed several facts as follows. Over the previous five years, there has been a decline nationally of students pursuing careers in education. Many states, upon realizing this, began proactive approaches and raised teacher salaries. Those states that did not take these measures and are now in a reactive phase, have adopted measures that include, but are not limited to, hiring incentives - some as high as $10,000, housing allowances, loan forgiveness programs and alternative certification procedures. Ms. Hill encouraged the Committee to consider all three components of this legislation, asserting they are only a small effort compared to other states' activities. Ms. Hill remarked the preliminary certification of out of state teachers is the program's highest priority, and would assist in the certification process for both school districts and educators. Ms. Hill expressed that the employment of retired teachers "brings experience and mentors into the classroom." Ms. Hill stated the increase in medical benefits is "just a small component" compared to the efforts of other states. She stressed that any incentives would be helpful. Ms. Hill told the Committee she was attending a job fair in Oklahoma with representatives from 11 Alaska School Districts. She said that the districts in urban areas, such as Anchorage and the Kenai Peninsula are conducting some interviews. However, she said the rural school districts were having a difficult time recruiting for the up to 30 vacant positions in their districts. She warned that the teacher shortage would get worse before it improves and stressed the need to certify and hire qualified teachers in Alaska. To not do so, she cautioned, would not give "justice to Alaskan children." DEBBIE OSSIANDER, Legislative Chair and Member, Anchorage School Board testified in Juneau in support of the legislation. She spoke of "acute shortage areas" within the Anchorage School District (ASD) that extended beyond teachers to special education and related services, librarians, foreign language teacher experts, math and science teachers and music specialists. She stated that the district has had to contract with private firms, at a higher cost, to provide some special education services. Ms. Ossiander told of requests to the Department of Education and Early Development for flexibility in accepting out of state teaching certificates for provisional certification in Alaska. Ms. Ossiander stated the problems associated with the current process of issuing the waivers for special education teachers. Ms. Ossiander expressed the high priority the ASD Board has placed on establishing a system to re-employ retired TRS teachers. She informed of the high standards required to obtain an Alaska teaching certificate and because of this, the length of time involved in meeting the requirements. Ms. Ossiander said the increased medical benefits opportunity would provide an incentive the ASD could offer retired teachers to return to work. Co-Chair Kelly asked Ms. Ossiander's professional credentials. Ms. Ossiander replied she is a certified respiratory therapist who has become "a quasi education specialist" over her ten-year involvement with the school board. Co-Chair Kelly referenced SB 86, regarding alternative certification and recalled previous Committee discussions about the fear that communities would opt for retired teachers over alternative certification of professionals in other fields entering teaching with a preliminary teachers certificate. Co-Chair Kelly gave Senator Leman as an example of a Stanford University educated engineer, with 14 years experience in the legislature "explaining things to people" and who is willing to teach. Co-Chair Kelly wanted to know if a recently educated certified teacher would get preference. Ms. Ossiander expressed she supported SB 86, giving an example of foreign language immersion programs and the opportunity to have certificated teachers fluent in such languages. She requested school districts be given flexibility to obtain and certify available specialists. She predicted the districts would find highly qualified professionals in their field to offer higher-level education of math, music and other subjects. Co-Chair Kelly appreciated Ms. Ossiander was not a professional educator, citing the need for community member involvement. He commented that retired teachers were easy to rehire but that school districts should also think about hiring professionals with expertise in their field. He stated that SB 86 is an attempt to "think outside of the box" and SB 149 offers a "more utilitarian answer to a pressing problem" that still allows for alternative solutions to the teacher shortage. Ms. Ossiander qualified she is not directly involved in individual hiring decisions, but said she would convey to the other board members the importance of having a teacher in the classroom who is "extremely capable and qualified in the subject that they're teaching." Senator Hoffman assessed this legislation as helpful in solving a short-term problem. However, he cited lowered attendance at teacher job fairs since 1997 and asked the witness for suggestions in addressing the long-term problem. Ms. Ossiander replied, "I think that there is no one simple answer," as evident by the different legislation pertaining to the issue. She expressed she is encouraged by the increased per pupil allocation in the foundation funding formula as it would allow the district to hire and maintain qualified teachers. AT EASE 9:54 AM / 9:59 AM Senator Green recalled concerns about the rehire of a state employee, including a legislator, and the possible complications associated with participation in another retirement package. ALISON ELGEE, Deputy Commissioner, Department of Administration explained that currently a retired Public Employees Retirement System (PERS) member who takes a job as a teacher, or a retired TRS member who takes a job in a PERS position, would not have to suspend receipt of retirement benefits since that employee is entering different retirement plan. However she noted the certification requirements necessary to obtain a teaching position. Ms. Elgee suggested if the intent is to allow a retired PERS member to become a teacher, clarification language should be inserted in the legislation to stipulate whether that employee, with a preliminary certification, is to be covered by TRS or continue to be eligible to receive PERS retirement payments. She noted that a public employee must be covered under a benefit plan and recommended PERS as a default in these instances. Co-Chair Kelly asked if at the point the teacher becomes fully certified, the employee is then covered under TRS. Ms. Elgee affirmed TRS is the appropriate system for a teacher who has fulfilled all requirements for becoming fully certified. Senator Green shared a conversation she overheard about the desire to hire retired PERS members as teachers at the University of Alaska. She asked what system the university participates in. Ms. Elgee listed classified staff as PERS members and certified staff as TRS members. She noted there is also an optional retirement plan available to teachers. Co-Chair Kelly understood the Department of Education and Early Development might have contradictory information on the subject. BRUCE JOHNSON, Deputy Commissioner of Education, Department of Education and Early Development stated a determination made during the creation of SB 36, from the Twentieth Alaska State Legislature, specified that a "subject matter specialist" would have a teacher certificate. He cited language from that legislation, "A person employed as a subject matter expert teacher … is considered a certificate employee" for purposes of TRS. Senator Green assured she was not attempting to "muddy the waters" on either SB 86 or SB 149, but pointed out this was a problem presented and that the manner of transferring from PERS to TRS, for both school districts and the university, should be clarified. She assumed there were provisions allowing a retired PERS or TRS member to instruct at the University of Alaska on a part time basis. Ms. Elgee affirmed a public employee could work in a separate field, as long as the new position is eligible to participate in a retirement system different than the one the employee retired from. Senator Hoffman asked if the employee would have to "start all over" to become vested in the new retirement program. Ms. Elgee answered that is correct and noted the vesting requirement for TRS is eight years. Mr. Johnson testified the "department has been excited about the concepts" presented, and judges SB 149 to be good legislation that would provide "additional tools" to ensure the most qualified individuals are employed as teachers in Alaska. He reaffirmed the situation is acute, that job fairs are attracting fewer applicants and that Alaskans could be recruited as teachers. Mr. Johnson added the department's support for the acceptance of teacher certificates from other states for preliminary certification. He expressed, "That makes good sense and eliminates tremendous barriers that we've had up to this point in time." Mr. Johnson noted the Alaska State Board of Education had recently adopted preliminary certification regulations similar to the intent of the bill. Senator Green asked if an employee retired under PERS, who becomes a teacher, could elect to not participate in TERS. She predicted this could save the school districts money. Ms. Elgee responded that currently a full time employee does not have the election to not participate in the applicable retirement system. She noted that the re-hire provisions in the bill for retired TRS members do give the option to not participate, but that retired PERS members would be required to participate in the TRS program. Co-Chair Kelly pointed out that by requiring these teachers to participate, they are actually contributing to the retirement fund. He stated this is a long-term advantage of the fund. Senator Leman offered a motion to move SS SB 149 from Committee with accompanying Department of Education and Early Development zero fiscal note and fiscal note from the Department of Administration for $50,000. SFC 01 # 85, Side B 10:13 AM There was no objection and the bill MOVED from Committee.