HB 106-TEACHER RECRUITMENT; LUMP SUM PAYMENT  9:16:56 AM CO-CHAIR ALLARD announced that the final order of business would be HOUSE BILL NO. 106, "An Act authorizing lump sum payments for certain teachers as retention and recruitment incentives; and providing for an effective date." 9:17:27 AM HEIDI TESHNER, Acting Commissioner, Department of Education and Early Development, presented HB 106 on behalf of the bill sponsor, House Rules by request of the governor. She explained that recruitment and retention of teachers has long been an issue in Alaska. She stated that teachers have a tremendous impact on student achievement. She stated that priority number four of Alaska's Education Challenge is to prepare, attract and retain effective education professionals, and that HB 106 supports Alaska's teachers. She gave statistics on the number of teachers in the state, including teachers recruited from outside Alaska, and of teacher turnover. She reminded the committee of a task force ordered by the governor in 2020 to examine teacher recruitment and retention, and of the six essential areas identified by the task force, salary was ranked number one. The bill would provide 3 tiers of incentive payments related to the type of district. 9:21:43 AM MS. TESHNER explained that "doing the same thing" is not working, and the incentive payments are just a single solution. She noted the proposed incentives would be a pilot to see if it would improve teacher recruitment and retention, and to analyze fluctuations per district. In summary, she explained, there are years of data and discussion about investing in Alaska's teachers, and through the introduction of HB 106, the governor is showing he is listening to stakeholders and directly incentivizing those who work in the classrooms. 9:23:25 AM MS. TESHNER, in response to a question from Representative Story regarding retention and recruitment incentives, replied that in the fiscal note, an additional $6.4 million has been added to provide the payment directly to districts, so it does not become an unfunded mandate to come up with the mandatory reduction. In response to a follow-up question, she suggested that DEED could determine incentive pay through its annual survey. 9:26:01 AM REPRESENTATIVE PRAX gave his understanding that the 3 tier payments are based on regions, but each teacher in a given region will get the same bonus, and asked for clarification that is correct. MS. TESHNER responded that DEED would put out an application, and teachers would have to apply and certify that they had worked for the year. The districts would then distribute the payments that DEED approved. REPRESENTATIVE PRAX expressed his concern that a [three-year] "state-wide experimental plan" is being proposed, and it has been stated that there is 20 percent turnover every year. He asked whether the other 80 percent who stay would get a cut in pay. MS. TESHNER replied it is subject to appropriation, and there are other teacher recruitment efforts that will be forthcoming, but it will not be determined until the end of the three years whether or not things truly work. 9:29:48 AM REPRESENTATIVE MCKAY commented that if [teacher recruitment efforts] work, "keep doing it." MS. TESHNER replied it is one mechanism; if there is success at the end of the three years, it would be determined how best to move forward. 9:30:51 AM CO-CHAIR ALLARD commented on recruitment and retention, and stated she was in favor of the bonus program. She reported hearing over and over that teacher salaries are not enough, and expressed her desire to "help that." She asked Ms. Teshner about rankings. MS. TESHNER replied she could not provide the information today but would follow up with the committee. 9:32:45 AM REPRESENTATIVE MCCORMICK asked Ms. Teshner to speak on how the lump sum payment compares to [a return to the] defined benefits system. MS. TESHNER replied she does not have an answer. She further stated that the bill is intended to determine whether the proposed incentives work. 9:33:43 AM REPRESENTATIVE STORY stressed the importance of having an annual evaluation or report back to the legislature imposed under HB 139, as it would help with accountability. MS. TESHNER replied that DEED would have to create regulations around HB 106. 9:35:57 AM REPRESENTATIVE HIMSCHOOT asked whether defined benefits would be addressed in the survey DEED is to provide. MS. TESHNER replied that retirement benefits is number four [in the survey]. REPRESENTATIVE HIMSCHOOT asked Ms. Tesher to read the top five. MS. TESHNER read the top five as follows: adequate compensation for assigned duties; positive workplace conditions; personal connections with students; retirement benefits; and good healthcare benefits. REPRESENTATIVE HIMSCHOOT commented that she appreciated the attention to the survey and trying to meet the needs of the practitioners. 9:37:42 AM CO-CHAIR ALLARD indicated she wants educators to know that the proposed incentives "stay in their pockets," stay in the classroom, and go towards their retirement. She encouraged educators to get on board; it is solely a benefit to them. 9:38:31 AM REPRESENTATIVE MCCORMICK asked for information on other states that may have implemented a similar program, and if the states also offer defined benefits on top of "these lump sums." MS. TESHNER explained she can follow up with more information, but the amounts in the tiered incentive align with what other states have done; she stated she will get back to the committee with a more solid answer. 9:39:24 AM CO-CHAIR ALLARD opined that the incentive would be great for families, those who are married to teachers, and in rural communities where she noted many times both spouses are teachers. Under HB 106, their income could be significantly increased. 9:39:59 AM REPRESENTATIVE HIMSCHOOT pointed out that the State of Washington did something similar in 2020, and the State of Massachusetts in 1998, and she asked Ms. Teshner to provide more information on the outcomes of those states thus far. 9:40:36 AM REPRESENTATIVE STORY provided her understanding that in Washington, there were parameters around lump sum payments, such as for teachers at high poverty schools. 9:42:08 AM CO-CHAIR ALLARD announced that HB 106 was held over.