HB 203-APPROP: STUDY OF SCHOOL COST FACTORS CHAIR BUNDE announced that the final order of business would be HOUSE BILL NO. 203, "An Act making an appropriation to the Legislative Council for a study of school district cost factors; and providing for an effective date." Number 0942 REPRESENTATIVE WILSON, as sponsor of HB 203, stated that this bill is an Act appropriating money for a school district cost- factor study. Those multipliers have not changed since 1986, and the Alaska constitution has an obligation to fully fund education for all students. Inherent in this mission, she said, is to account for the diverse geographical, ethnic, and economic changes in Alaska. She explained that this would study the school district cost differential to see what it costs to run a school in each district. CHAIR BUNDY asked if this bill would task the Legislative council to lead a contract to perform this study. REPRESENTATIVE WILSON stated that he was correct. REPRESENTATIVE GUESS stated that in her mind the methodology of the study that was done during SB 36 was extremely poor. She asked if [HB 203] addresses ensuring that this doesn't happen again or that every two years [the state] would have to pay $350,000 for a new formula instead of creating one that is updateable. REPRESENTATIVE WILSON answered that she thinks [the study needs] to be done correctly in order to see what it costs for fuel in each school district; what the property insurance is; or what it costs to get a fire inspector to the school and check the fire extinguishers. For example, with a small school like that in Tok, someone might have to fly in or take all day to drive there. All of these factors, she said, need to be thought about, checked, and done carefully. She added that she has an amendment that would add "housing," after "food," on page 1, line 10. Number 1137 REPRESENTATIVE PORTER made a motion to adopt Amendment 1, which would insert "housing," after "food," on page 1, line 10. REPRESENTATIVE GUESS objected for the purpose of discussion. She said she has talked to some of the top educational economists, and housing is very difficult to do from an economic standpoint in small areas, which is why there aren't any small area CPIs (consumer price indexes). She added that although she thinks it is a great intent, it might not be possible to do. She withdrew her objection. REPRESENTATIVE STEVENS asked Representative Wilson if she is talking about the housing costs for educators or for the districts in providing for housing for their employees. REPRESENTATIVE WILSON stated that she is talking about the housing cost to the districts. In some areas, she said, [the districts] have to provide housing for teachers in order to get them to come [to those areas]. REPRESENTATIVE PORTER stated that he agrees with Representative Guess that [the legislature] should try to do something to inspire the appropriate type of examination of the cost. He remarked that last time [the money] being spent was examined, as opposed to what the costs were. He added that the direction to the Legislative Council is to get somebody to study what it costs, not what is being spent. Number 1243 CHAIR BUNDE announced that there being no further objection, Amendment 1 was adopted. REPRESENTATIVE STEVENS remarked that he thinks it is a good idea to do a study like this. He stated that he is concerned that this is seen as being in place of an increase to a foundation formula. REPRESENTATIVE WILSON responded that there have been a lot of changes in the economic climate in many areas since 1986 and that this is just to make sure that everyone is "playing on an even playing board." She added that this has nothing to do with where the funding comes in the formula. She noted that there has been a lot of comment and work put into looking at funding for schools. When the Department of Education and Early Development [EED] had the last study done by the McDowell Group, it recommended that another study be done by reexamining the methodology. CHAIR BUNDE noted that this is a tool that the foundation formula thought to use and in no way mitigates the need for increasing the foundation formula. Number 1364 REPRESENTATIVE GUESS clarified that this legislative body, not the [EED], did the McDowell study. She stated that there are four other states that have cost factors; all are done in different ways. She remarked that every researcher she talks to says there is nothing in educational research right now that says it should be done a certain way; every system has a bias. From her research, she said, she believes this is the worst way to do it. She added that she would like every report that is created to discuss the bias because there is not going to be an unbiased study. Finally, she said she would like for any study or system that comes back to be updateable. Number 1460 REPRESENTATIVE PORTER made a motion to move HB 203, as amended, from committee with individual recommendations and attached fiscal notes. There being no objection, CSHB 203(HES) moved from the House Special Committee on Education.