HB 206-HIGH SCHOOL ASSESSM'T/POSTSECONDARY CLASS  9:31:22 AM CHAIR SEATON announced that the next order of business would be HOUSE BILL NO. 206, "An Act establishing a career assessment requirement in public schools; and relating to postsecondary courses for secondary school students." EDDY JEANS, Director, School Finance and Facilities Section, Department of Education and Early Development, explained that HB 206 would require a second mandatory enrollment count, for 20 days, in the month of February. Under the old foundation program an optional count could be taken in February, but that was only for districts that had increases in enrollment. He reported that this did not happen very often in the larger districts, but did impact smaller districts. In any year, the department might have between three to six districts applying for this optional count period. The proposed bill requires two count periods of 20 days each, one in February and one in October, and guarantees that districts are funded based on the prior year count. The funding for the current year would be based on the two counts from the prior fiscal year; a guaranteed minimum level of funding. During the current school year, the October count will be taken, averaged with the count from the previous February, and if the count has increased a funding benefit will be realized to reflect the rise in average daily membership (ADM). 9:33:15 AM CHAIR SEATON asked whether formula funding is currently based on an estimate of projected enrollment without considering the previous year counts. MR. JEANS clarified that funding is based solely on the current year count, as taken during the 20 day count period in October. Projections are received from school districts that are used to build the department's budget, but it does not impact how much money a district receives. District funding levels are based on one twelfth of what they received in the prior year, for the first nine months, then the final three months are adjusted in accordance with the current year count. One of the issues is that, with only one count required, schools may focus on retaining students just through that period. Also, a number of senior students may graduate mid-term, but schools are staffed based on autumn numbers, not on how many students they expect to have in the spring. Mr. Jeans reported that Commissioner LeDoux suggests a longer count period of perhaps three months, basing the funding on previous year counts, and a provision for district's to demonstrate a need due to increased enrollment. As proposed, HB 206 requires the averaging of two counts, which may cause some confusion. However, the bill does retain the basic concept to allow appropriate budgeting and a means for addressing an increase of enrollment, he opined. 9:36:00 AM CHAIR SEATON stated his understanding that Commissioner LeDoux would be interested in a five month count period. He asked if the average would be derived from the daily attendance, membership, or enrollment. MR. JEANS explained that enrollment is different than attendance, and attendance is different from membership. Typically enrollment is a one day snapshot of how many students are enrolled in each grade and program. The average daily attendance (ADA) is exactly that: how many students are attending school, on average, on a daily basis. The average daily membership (ADM) represents how many students are enrolled in the school district, not necessarily attending on a given day. The current funding formula uses the ADM, based on the 20 day count period. He explained that the daily attendance is totaled for the 20 day period, divided back by 20 and the number arrived at represents the ADM. Thus, a student who is enrolled for 10 days, during that period, would count as half of a student. 9:37:42 AM CHAIR SEATON clarified that the alternatives, which Commissioner LeDoux discussed, were based on the ADM. MR. JEANS confirmed the chairman's understanding and pointed out that the commissioner was also considering having the count occur over a longer period of time, 3-5 months, utilizing the same process that is now in place. Additionally, the current year funding would be based on the previous year's count, with the possibility to compensate for increased numbers. 9:38:14 AM REPRESENTATIVE BUCH asked for clarity on the proposed time frame to establish the ADM. MR. JEANS reviewed the count schedule as previously laid out. Additionally, he reiterated reasons for changing the current system: being able to utilize the prior year count will help district's during the budgeting process, knowing exactly what to expect for their budget, and also being able to receive a current year benefit should enrollment increase. 9:39:44 AM CHAIR SEATON stated that the committee is interested in statutory mechanisms to encourage retention of students. The count period change may stimulate districts to eliminate factors resulting in push-outs, or instituting other measures to increase the retention rate of student's throughout high school. The presumption is for this change to increase graduation rates. When only one count period occurs, he opined, there may not be a concerted effort to help students continue throughout the year. 9:40:57 AM REPRESENTATIVE P. WILSON indicated that some families move during the school year, and she expressed her interest to ensure that a district is not penalized when this occurs. She addressed the handout and read: "Reduction in the spring is based on the drop-out rates from 2008 and 2009, as if it were 5.2 percent." She asked whether this legislation will make an incentive strong enough for the schools to make an effort to retain students, particularly problem students. Is there a possible fix for the numbers representing the students who graduate mid-year, she asked. MR. JEANS addressed the dropout rate first, explaining that it was calculated using the number of students from the October count and establishing the number of students still enrolled at the beginning of summer. The rate arrived at was 5.2 percent, and has been declining, however it represents approximately 3,000 students statewide. Whatever means is adopted, to establish the ADM in schools, school budgets and district efforts of retaining students will be effected. He opined that changing the count method will not solve the drop-out problem, but it will exert financial pressure on schools to keep students engaged. Changing the count period will result in less funding than districts are accustomed to receiving. To offset the impact that this type of count/budget change will have in the first couple of years, consideration for increasing the base student allocation rate is in order. The increase would be important as a means to incentivize districts, not penalize them with a budget cut. 9:44:35 AM CHAIR SEATON summarized that when students move away a school would experience a decline in enrollment, but the funding is already in place. Further, if enrollment were to increase in the course of the year, a budget adjustment would be made to account for the additional numbers. MR. JEANS confirmed that if enrollment has declined, a budget based on previous year counts, will provide a one year delay to adjust a schools budget. 9:45:40 AM REPRESENTATIVE MUNOZ expressed her support for basing funding on previous year counts, noting the benefit to the budgeting process. However, a converse impact of a second count, due to the natural ebb and flow of a student population, may prove problematic. She directed attention to the committee packet and the memo received from the Southeast Island School District indicating annual number fluctuations that would jeopardize their future funding, under the proposed scenario. MR. JEANS agreed and said that anything done outside of the current funding count period will have the largest effect on the state's smallest schools, and it may be difficult for some to survive. REPRESENTATIVE GARDNER asked for clarity on the cost implications for the state's school districts when considering an ADM averaged over a five month count period versus two 20 day counts. MR. JEANS responded that there may not be a big difference between the two resulting numbers, but when the count period is expanded, he said he believes lower counts will be the result. 9:48:44 AM CHAIR SEATON advised that at the next regular committee meeting a longitudinal study, undertaken by the Anchorage School District, will be presented. The data will indicate how a student who drops-out will probably drop-out multiple times throughout their high school career; very few students exit the system without returning. Schools need to be incentivized to keep these students engaged, he opined. Situations vary, he commented, and the same student may be dropping-out continuously, the family may be away fishing each year during the count period, or students may enroll in another school for part of the school year. 9:51:51 AM MR. JEANS cautioned that perceptions may be skewed, and what is actually happening may be confused with what is thought to be occurring. Historical data does not indicate huge influxes of population, following a student count period, that would be detrimental to a district. The smallest schools are effected when, for instance, a family with six students relocates, representing a significant population change. Changes of this type are anomalies, not the norm. Situations do arise routinely, he reported, such as students leaving home correspondence programs and enrolling in a brick and mortar school. 9:53:22 AM REPRESENTATIVE EDGMON asked for the department's official position on HB 206. The testimony provided today appears to conflict, he noted, with the commissioner suggesting a lengthier count period and the director cautioning against changing the status quo. MR. JEANS clarified that the most important aspect is, and the commissioner agrees, that funding be based on the prior year's count, giving the districts a guaranteed base, and the bill provides this measure. There are varying methods for arriving at the ADM, and the commissioner prefers a count period extended beyond the current 20 days. REPRESENTATIVE EDGMON maintained his inquiry for an official departmental position on HB 206. MR. JEANS refrained from expressing an official position, pending further discussion with the commissioner. 9:55:45 AM CHAIR SEATON asked whether the longer count period requires implementing a new administrative process, or if it utilizes the current attendance methods and information. MR. JEANS confirmed that HB 206 alters the count period process, but the procedures are in place and remain the same for obtaining the ADM. CHAIR SEATON welcomed comment from the districts regarding the advantages of the different procedures. 9:56:47 AM REPRESENTATIVE BUCH asked if the economy of scale should be taken into account, because of the effect it may have on smaller schools. Perhaps the means for funding smaller schools should be reconsidered, he opined. MR. JEANS said that it is not his intent to suggest adjusting the school size table, but to caution the committee that extending the count period, many districts will experience a drop in their ADM count, and some schools will be seeking a form of relief. The apparent means to offset such a scenario, is an increase in the base student allocation. 9:58:01 AM CHAIR SEATON stated that the bill would be held for continued discussion. ^#Overview: Graduation Rate Working Group Overview: Graduation Rate Working Group    9:58:18 AM BILL WATKINS, Principal, Kodiak High School, advised that facility conditions are a major push-out factor. Nationwide, 50 percent of the schools have been identified as having sick building syndrome. Health research indicates a direct correlating influence of these buildings on teenagers with existing conditions such as asthma. Sick building syndrome has been thoroughly researched and the impacts it has on student attendance, and achievement levels. He offered to provide additional information on this topic to the committee. The advisory program was implemented two years ago in the Kodiak schools, and this year students are meeting with their advisory teacher once a week. The expectation is to increase these contacts to a daily basis. Effectiveness data on the advisory program is being collected via student surveys, GPA comparisons, attendance records, drop-out rates, number of students taking college entry or work-force readiness exams, number of students graduating with an established plan, and the number of students entering high school with a class course and post graduate plan in place. He touted the importance of the middle school advisory program for helping the students make a smooth transition into high school, and to guide them to the necessary course work for meeting their goals. The advisor expects to remain with a student for the four year duration, building a meaningful relationship. He reported that Kodiak has a teacher retention rate averaging 95 percent. The new assessment tools, particularly Key Train and WorkKeys, are being utilized. The advantage of the WorkKeys program has been the flexibility for testing, and individual motivational benefits that come from the instant test results, allowing a student to target curriculum needs, and resulting in increased student retention. Another key has been providing each student with a lap top computer for ease of viewing the Alaska Career Information System (ACIS) website, where the students build their career portfolios. Regarding the question of whether to restrict activities, he stated opposition to the four strikes and you're out approach. Activities are sometimes the only carrot that can be used to engage a student and the possibility should not be taken away regardless of drug/alcohol/tobacco abuse. Also, activity involvement provides a student with an additional adult to help guide them and keep them engaged and connected. He said that the school believes in the power of five: a 5:1 ratio, adult/coach to student in need, for creating success. 10:06:03 AM CHAIR SEATON solicited further comments on the bills in question, and thanked the day's participants. 10:07:18 AM ADJOURNMENT  There being no further business before the committee, the Department of Education and Early Development meeting was adjourned at 10:07 a.m.