HB 69-RECLASSIFICATION OF FIRST CLASS CITIES  8:02:40 AM CO-CHAIR RUFFRIDGE announced that the first order of business would be HOUSE BILL NO. 69, "An Act relating to the reclassification of first class cities as second class cities; and providing for an effective date." 8:02:55 AM MIKE CRONK, Alaska State Legislature, as prime sponsor, explained HB 69 would allow a first class city to reclassify to a second class city if the community chooses so. The purpose would be to allow the transfer of Tanana into the Yukon-Koyukuk School District. 8:03:33 AM CO-CHAIR RUFFRIDGE opened public testimony on HB 69. After ascertaining there was no one who wished to testify, he closed public testimony. 8:04:01 AM REPRESENTATIVE STORY expressed appreciation for hearing from the superintendent "in that area," and knowing there have been thorough discussions on working around the parameters. She stated the bill is "the right thing to do." 8:04:27 AM REPRESENTATIVE PRAX pointed out that he did not see the fiscal note from the Department of Education. 8:05:03 AM DAVE STANCLIFF, Staff, Representative Mike Cronk, Alaska State Legislature, on behalf of Representative Cronk, prime sponsor of HB 69, responded to Representative Prax, and explained the sheet from the Yukon-Koyukuk School District notes the savings that would be achieved by combining the school districts; there would be a negative fiscal impact. 8:07:35 AM REPRESENTATIVE HIMSCHOOT commented she is troubled by the lack of input and would prefer to hear from more than just the superintendent, and since this is about "absorbing one district into another," she would like to hear from the local community. REPRESENTATIVE CRONK responded that two years ago, the community of Tanana reached out. He explained the majority of the people of Tanana feel that [combining the school districts] is the best path forward. He further explained the school boards have been working together on a contract, and the Yukon-Koyukuk School District had already been functioning as a lead the past few years. 8:09:21 AM CO-CHAIR ALLARD asked for clarification that this legislation is an option, and at the end of the day, the city gets to make the decision. REPRESENTATIVE CRONK confirmed that is correct, the people of Tanana decide whether they want to be reclassified. If that happened, then they would have the option through the Local Boundary Commission. MR. STANCLIFF noted there is a letter from the mayor and a resolution from the council in the committee packet. 8:10:24 AM REPRESENTATIVE HIMSCHOOT asked if reclassification may lead to future communities having the same pathway - and if so - which communities might be next. REPRESENTATIVE CRONK replied that the bill is specifically for Tanana. MR. STANCLIFF expanded on the answer and explained four other communities had been identified that are under the 400 limit, and if they got into "some sort of a bind," the option would be available for those communities. He noted they would also have to work with the Local Boundary Commission, as Tanana would do. 8:11:21 AM REPRESENTATIVE PRAX brought up the city of Nenana going through bankruptcy, which required other agencies to "pick up the tab." He reiterated we [the legislature] need to think about this very carefully. 8:12:20 AM CO-CHAIR ALLARD moved to report HB 69 out of committee with individual recommendations and the accompanying fiscal note. 8:12:56 AM The committee took an at-ease from 8:12 a.m. to 8:13 a.m. 8:13:59 AM CO-CHAIR RUFFRIDGE announced there being no objection, HB 69 was reported out of the House Education Standing Committee.