HB 471-INCREASE AMT OF BASE STUDENT ALLOCATION [Contains discussion of HB 477] CHAIR GATTO announced that the committee would return to discussions about HB 471. He told the members that Representative Gara would provide a minority report on the subcommittee on education funding. Number 1907 REPRESENTATIVE GARA asked if the chair wishes to take up Amendment 3 today. CHAIR GATTO responded that he would like to hold off on Amendment 3 until Thursday. Number 1977 REPRESENTATIVE GARA said that he appreciates all the efforts of the subcommittee members and those who took the time to testify. The bill before the members goes a long way to repair the damage to the schools over the last many years, he said. Comments that were heard today from the Matanuska-Susitna Borough School District and testimony heard in subcommittee actually went further than what the bill offers. For example, Kenai Peninsula School District indicated that it would need a base student allocation of $4,570, if the PER and TRS was rolled into the [base student allocation], just to be held harmless to last year's level, he said. Matanuska-Susitna Borough School District needed the same amount of money to be at the same level as last year, he added. Representative Gara reminded the members that the school districts were very clear that last year education funding was cut and the funding fell behind on inflation [proofing]. These actions caused severe impacts which required the districts to layoff substantial numbers of teachers. Representative Gara pointed out that HB 471 only mitigates this year's damage and does nothing to repair the damage from last year's [budget cuts]. Number 2010 REPRESENTATIVE GARA told the members that he and Representative Kapsner have filed HB 477 in an attempt to go the second step in repairing some of last year's damage. As the members will recall, he said, last year the legislature eliminated community schools funding, cut what goes into pupil transportation, cut the program that helped school districts pay for the extra costs of educating foster children, and cut the kindergarten program for four-year olds. Representative Gara said he believes it is time to start repairing the damage. He explained that his plan would include an increase in the base student allocation to $4,600 per student, which would include rolling the PERS and TRS amount [into the bill]. The reason that is important is that the amount then becomes part of the base student allocation and it will not be necessary to go over the PERS and TRS issue again next year. The numbers are not that far off, he commented, the number in HB 477 recommends is $4,600, while the number the subcommittee is recommending is the equivalent of $4,557 per student. Representative Gara pointed out that the difference is $8 million and 160 teachers. He summarized that for not a lot more money [the legislature] could go a long way to solve this problem. Representative Gara applauded the subcommittee's action in addressing inflation by increasing the base student allocation into the future by 2 percent annually. He pointed out that inflation may exceed 2 percent so a better way of addressing this issue would be to acknowledge the damage that has taken place over the last decade, and to repair that damage into the future by increases to the base student allocation with inflation [proofing], plus another 2 percent until class sizes come down to a level that is acceptable. Representative Gara reiterated his appreciation for the work the committee did and acknowledged that [HB 471] is a good bill, but noted that there is much to be done to repair past damage [to public education]. Number 2162 CHAIR GATTO commented that Representative Gara's reference to the funding being "not that far off" is music to his ears, because there have been many times that the members have been very far apart. [HB 471 was held in committee.]