HB 317-EDUC. FUNDING: BASIC/SPEC NEEDS/TRANSPORT  8:07:10 AM CHAIR SEATON announced that the first order of business would be HOUSE BILL NO. 317, "An Act increasing the special needs funding and base student allocation for public schools, and extending the adjustment for student transportation funding; and providing for an effective date." 8:08:16 AM CARL ROSE, Executive Director, Association of Alaska School Boards (AASB), stated support for HB 317, and said that the bill represented an extension of the effort toward forward funding. The other aspects of the bill are also widely supported. 8:09:33 AM JOHN ALCANTRA, Government Relations Director, National Education Association of Alaska (NEAA), stated support for HB 317, and said forward funding is welcomed by teacher and education support members. He suggested that the state consider expediting the area cost differentials, due to the lengthy wait period many teachers face. Further, he reported that, with only a $100 base student allocation (BSA) increase, for fiscal year (FY) ll, schools are preparing to eliminate dozens of teaching positions. The bill may help alleviate this type of situation in the future. 8:12:33 AM LaDAWN DRUCE, President, Kenai Peninsula Education Association, stated support for HB 317, and suggested an effective date of July 2010, for the BSA rate increased being made to Sections 2 and 3. She said that maintaining a reasonable student to teacher ratio is important, and explained what can happen when one full time teaching position is removed from a school. 8:16:31 AM CHAIR SEATON closed public testimony. 8:16:45 AM REPRESENTATIVE P. WILSON agreed with the comments brought forward by the witnesses, and was sympathetic for the immediate need for a BSA increase, citing legislative restraints. 8:17:43 AM REPRESENTATIVE GARDNER disagreed that this committee would be unable to change recommendations previously established. She said it is the responsibility of the current committee to take action that is deemed appropriate at this time. Further, she asked about the letter of intent that is accompanying the bill. She questioned how it will be overseen by EED, and enforced, even though it does not carry the weight of a statute. 8:18:46 AM CHAIR SEATON paraphrased the letter of intent, which read as follows [original punctuation provided]: It is the intent of the legislature that the increases in block funding for education in AS.14.17.420(a)(1) as amended by HB 317 are meant to enhance a district's ability to offer career technical/vocational education as an addition to other funds a district applies to career technical/vocational education. The increase is not to be interpreted as the only funds a district can designate for career technical/vocational education. 8:19:32 AM CHAIR SEATON expressed confidence that the letter of intent will provide the districts with appropriate guidelines for implementing the funding increase. The bill language does not specify how districts are to spend the increased funds; hence the letter of intent versus legal constraints. The block grant funding was incorporated, in response to multiple statewide comments, indicating that career and technical/vocational education programs are being constrained due to lack of funding. 8:22:12 AM REPRESENTATIVE BUCH expressed concern, and anticipation, for the funding to be used as directed in the letter of intent, and said the committee members will be watchful that appropriate action is taken by the districts. 8:23:05 AM REPRESENTATIVE MUNOZ recalled that a 1.50 percent increase was being considered for the career/technical add-on, and asked how it was settled at the current 1.215 percent. CHAIR SEATON explained that Amendment 1 [labeled 26-LS1378\E.2, Mischel, 2/4/10, passed at the 2/5/10 meeting] was the vehicle for the change. 8:24:02 AM REPRESENTATIVE P. WILSON commented that some school boards have indicated that the increase may end up being directed to special education support. She agreed that the letter of intent will help schools to implement the programs that the committee expects to have benefit by this action. 8:25:25 AM CHAIR SEATON pointed out that today, with the inception of virtual classes, community internships, and other possibilities, the funding will help provide opportunities that are more economical than building/staffing a lab style classroom. The benefits can be as great for less cost, he opined, and stressed the importance for thinking outside the box. 8:27:22 AM CHAIR EDGMON referred to the letter of intent and suggested inserting a second "that" to the first line, to read in part: "... other funds that a district applies ...". He received agreement from the committee that the language would be included in the final letter. 8:28:31 AM REPRESENTATIVE GARDNER recalled the adage, "Those that don't ask, don't get." She stated her belief that the committee has the responsibility to ask for what is really needed [for education], however, having no amendment to offer, she said she would not delay movement of the bill. 8:29:24 AM CHAIR SEATON agreed with the expressed concern, and suggested the finance subcommittee could provide a forum to continue the discussion. 8:29:55 AM REPRESENTATIVE P. WILSON moved to report HB 317, 26-LS1378\S, Mischel, 2/5/10, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 317(EDC) was reported from the House Education Standing Committee. 8:30:25 AM The committee took an at-ease from 8:30 a.m. to 8:32 a.m.