HB 174- CORRESPONDENCE STUDY CHAIR GATTO announced that the next order of business would be HOUSE BILL NO. 174, "An Act relating to the state centralized correspondence study program, to funding for educational programs that occur primarily outside school facilities, and to the duties of school boards of borough and city school districts and regional educational attendance areas; and providing for an effective date." Number 0727 EDDY JEANS, Manager, School Finance and Facilities Section, Education Support Services, Department of Education and Early Development, testified in support of HB 174. He told the committee Alyeska Central School (ACS) was once the state's only correspondence program offering educational services to students statewide. The school began operation in 1939, offering programs to students who lived in remote areas of the state with no local schools. MR. JEANS explained that currently there are 12 school districts offering statewide correspondence programs to Alaska school age residents. The district-operated statewide correspondence programs have been in operation since approximately 1997 and offer a variety of operational delivery methods. Education delivery models include U.S. Postal Service, Internet, and family-developed programs with support from district staff. Eliminating ACS will be eliminating duplicate services currently being offered by school districts enrolling students on a statewide basis. Number 0662 MR. JEANS told the committee the department has two fiscal notes. Fiscal note 1 eliminates the ACS budget component within the Department of Education and Early Development and shows a reduction of $5.5 million. The second fiscal note shows a reduction in the foundation-funding program of $1.17 million or almost $1.2 million. This reflects the elimination of the summer school funding that ACS currently enjoys. Number 0555 MR. JEANS told the committee the reason for two fiscal notes is that in this proposal ACS will no longer exist in the department's budget, so it is necessary to remove that budget component. MR. JEANS addressed the second piece to this, which is allocated through the foundation-funding program. He said the department believes the students who are currently served through the Alyeska Central School will be served through other statewide education programs, so the only real savings in the foundation program is that money which is associated with the summer school program. Currently, Alyeska Central School is the only school that is eligible to claim summer school funding. That summer school funding represents about [$1.17 million]. Of the approximately 1,200 students that the state funds ACS for, 835 of those are enrolled in its regular program. Number 0436 MR. JEANS told the committee the department has been contacted by other statewide correspondence programs that have indicated that if their schools are not providing what ACS is currently providing, they would be prepared to develop such programs and offer those services to the students currently enrolled in ACS. The department will work with those families [whose children attend ACS] to identify programs that will fit their needs. MR. JEANS reviewed the bill by section. Section 1 under AS 14.07.020(a)(9) eliminates language that the department offers a statewide correspondence program. Section 2 under AS 14.14.090(2) amends the duties of a school board and allows for school districts to enroll students in a statewide correspondence program. Section 3 under AS 14.14.120(c) requires an inoperative school district, in other words, a school district that is getting ready to close, to provide the families with information on correspondence programs available to them throughout the state. Section 4 under AS 14.17.300 removes the word ["centralized"] from the funding account. In this section of statute, central correspondence study referred to the state-run program, so by eliminating ["centralized"] it just refers to correspondence programs. Section 5 under AS 14.17.400(b) removes the word ["centralized"] and leaves the language open to all correspondence programs. MR. JEANS stated that Section 6 is an important change that he wants to bring to the committee's attention. It read: Sec. 14.17.430. State funding for correspondence  study and similar programs. Except as provided in AS 14.17.400(b), funding for [THE STATE CENTRALIZED CORRESPONDENCE STUDY PROGRAM OR] a district correspondence program, including a district that offers a statewide correspondence study program, or a  study program that occurs primarily outside a school  facility, includes an allocation from the public school account in an amount calculated by multiplying the ADM of the correspondence or study program by 80 percent. MR. JEANS told the committee this section says that if a correspondence study program in the district or on a statewide level or if it is a similar type of program, that would mean it is through [the state's] charter school legislation. The state does have charter schools that provide educational programs, mainly in the home. In other words, state-supported homeschooling will be funded at 80 percent. He said this is very important because the state does have some charter schools that offer that type of program, and nowhere in the statute does the law specify what their funding level will be. This language brings clarity to that issue. Number 0067 CHAIR GATTO asked if the funding has always been 80 percent. MR. JEANS responded that it has been 80 percent all along. The department's regulatory process has defined correspondence study programs to include those programs that are offered by school districts that provide support for home-based programs. What this does is develop clarity in the statute. TAPE 03-10, SIDE A Number 0001 REPRESENTATIVE KAPSNER asked Mr. Jeans about a clear distinction between charter schools and correspondence schools. MR. JEANS told the committee one example of this is the Family Partnership Charter School ("Family Partnership") in Anchorage. It is operated as a charter school under the Anchorage School District. It is a home-based educational program. Family Partnership will tell the legislature that it is not a correspondence program, but a home-support program. What it does not have that community schools has is a facility, the staff, and operational and maintenance costs to operate a facility. So under the foundation program there are two sets of funding: that set of funding that is provided for the operation of a facility to staff, maintain, and heat it, and correspondence funding, which is for all those programs that are not housed in a facility. What this amendment does is make that very clear. There are two different adjustments within the foundation formula. Number 0151 CHAIR GATTO said that last year the Mat-Su [Matanuska-Susitna] school board received an application from Horizon Charter School, which identified itself as a group of homeschoolers who wanted to be included in this new charter school. He said he believed the board approved its application after a year, or in the normal timeframe. MR. JEANS said the Horizon Charter School is on the agenda for the state board of education's meeting next week for state approval. Clarity in this area is very important. MR. JEANS said under Section 7, AS 14.17.600(a) amends the foundation account statute, which repeals the section that deals with ACS, including the provision that allows that program to count summer school students. Under Section 8, AS 14.30.010(b)(10) amends the compulsory education law to eliminate ACS and simply refers to a child that is enrolled in a state correspondence study program. Under Section 9, AS 14.30.350(8) eliminates the reference to the ACS under the definition of school district. Under Section 10, AS 39.25.110(7) removes ACS teachers from this statute. This provision currently exempts teachers from the personnel rules that apply for people that are employed as classified employees. This is a cleanup in statutes. Under Section 11, AS 39.25.160(e)(7) removes the reference to the Department of Education and Early Development correspondence teachers. This statute prohibits these individuals from being in a management position of a political party. It is statutory cleanup. Under Section 12 is the effective date. Number 0359 DEANNA PATZ testified in opposition to HB 174. She addressed Representative Kapsner's comment about homeschool and correspondence school and said there is a large difference between the two. A lot of families homeschool without district input. She said she would like to reread an item from Governor Murkowski's letter that was read by Mr. Jeans. In it the governor says: "However, there are 12 school districts currently offering statewide correspondence services to Alaska's school age residents." Ms. Patz said in reality those 12 or more districts are not correspondence schools in the same way that ACS is. They do not provide schoolteachers. They do not provide their own curriculum. They provide money. In large areas like Anchorage, Fairbanks, and Juneau, they provide support groups. Number 0557 MS. PATZ told the committee that ACS is unique. She told the committee that she has used ACS for 17 years and has six children who have been successful with this program. The school provides individual care and consideration for the students' needs and teachers who are there. They provide a library, supplies, and curriculum. Other schools such as Nenana and Galena only provide funding; they are not duplicates. She told the committee she is very opposed to having it eliminated. She said ACS fulfilled all of the needs her family had. CHAIR GATTO announce that there would be another meeting on Thursday and he will make a special effort to hear those who have been waiting to testify today. Number 0728 HAYLIE RUDDELL testified via teleconference from Anchorage in opposition to HB 174. She told the committee she is a junior at ACS and found the ability to totally focus on studying important. She said in public schools students are subjected to peer pressure and violence. Ms. Ruddell pointed out that there was just a shooting at East High School [in Anchorage] on Friday. She said ACS has allowed her to focus on her education. She said she just participated in the academic decathlon and her team placed 10th overall out of 30 schools. She said her team only had two months to study for it, and one student was the second highest scorer in the decathlon. The fact that ACS had two months preparation time when all the other schools had six months, and that they were able to do so well, really shows how successful ACS is, she suggested. She said it would be awful for this to be eliminated, especially in rural areas. Number 0915 CHAIR GATTO asked if this program disappeared, what she and her brother would do. MS. RIDDELL said she does not know. They would have to look for another program. CHAIR GATTO asked if she has looked at other schools. MS. RIDDELL said she looked at taking a course at University of Alaska Anchorage (UAA) or possibly going back to public school, such as West High, and is still looking for another correspondence program. The other correspondence programs are not like ACS, which has been far better than she ever imagined. Number 1085 JOHN PADEN, Counselor, Alyeska Central School; Representative, Alyeska Central School Association, testified in opposition to HB 174. He told the committee there is a big difference between ACS and other distance programs available in the state. He shared an experience he recently encountered when a family had to move from Southeast Alaska to the Interior of Alaska, and the problem facing their child was that there still was a little more schooling to be done for that school year. The parents wanted to know if ACS could help. The answer was yes, because at this time of year the program is able to take in kids. That child's semester began when the child received the materials, and the schooling can be completed, even though it will go into the summer. This particular student will finish her high school career in mid-July and be able to continue on with her plans without having to wait another half a school year in order to finish up. MR. PADEN shared another example of a parent from rural Western Alaska, who called because his daughter was ill, and had been ill quite a bit in the past year and missed a lot of school. He wanted to know if it would be possible for his daughter to come into ACS in February and finish her eighth-grade year. The answer is yes. She can finish up by August and be able to go back to her local school if that is what the father chooses. She would not have lost a full year. He told the committee that he gets calls daily, not just during open enrollment, from parents who want to school their children, and this program does exactly that. It is not relegated to the September-to-May period of time. Number 1313 MR. PADEN said two days ago a father called from Western Alaska asking about his eighth-grade daughter. In this case, the answer was no, ACS could not take his child in. He said the question is where these kids are going to go, especially with the question of No Child Left Behind. [HB 174 was held over.]