SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 20 "An Act relating to a separate appropriation bill for operating expenses for primary and secondary public education and establishing a date by which the bill must be transmitted to the governor each year; relating to notice of nonretention for tenured teachers; and providing for an effective date." Representative Paul Seaton explained that SSHB 20 requires a separate appropriation bill for operating expenses for primary and secondary public education. The purpose of the bill is to get early funding for education. The governor would submit an education bill, which the legislature would pass out by March 5. This would improve teacher morale when pink slips have to be sent out because the school district does not know their budget ahead of time. It would be limited to the operating budget. Co-Chair Meyer noted that Amendment 1 has been withdrawn. 3:50:55 PM Representative Hawker indicated that the bill bifurcates the budget process and may violate a fundamental constitutional principle regarding dedicated funds. The bill creates a situation where education is funded first. Representative Seaton related that legislative legal found no constitutional problems with the bill. It only sets up a procedure and tries to do what the House did this year; get early funding. Representative Hawker maintained that it violates the constitution. He opined that the legislature has the option to deal with this issue in another way. He said he is looking for substance in the bill. Representative Seaton replied that the legislature does this quite a bit. He gave examples of the Alaska Seafood Marketing Association and Aquaculture Associations where taxes are collected with the intent to rebate. In those instances, a procedure is set up similar to that in the bill. 3:55:50 PM Representative Hawker agreed in principle. Representative Joule noted that each funding increase has come at the very end of the session. Representative Seaton stressed that the prevailing argument is adequate funding versus early funding. He emphasized that education has become a priority. He pointed out the number of letters from school districts in support of this legislation. 3:59:56 PM Representative Kelly acknowledged the importance of the issue and questioned if similar legislation has been discussed in previous legislatures. Representative Seaton recalled that HB 19 was discussed in rd the 23 Legislature. Previously, many school boards felt they had a better chance of receiving increased funding by coming before the legislature at the end of the session. Many school boards have concluded that early funding is preferred. Representative Kelly expressed concern that the Legislature's hands not be tied. 4:03:50 PM EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, testified in support of the legislation. Co-Chair Meyer wondered if education would receive more funding by holding out to the end of the legislative session. Mr. Jeans observed that the increase to the foundation formula must come through the student base allocation, which occurs through statute. He acknowledged the problems associated with notification of tenured teachers and the purchase of supplies. He cautioned school districts from building budgets beyond the amount allocated through statute. Local school districts are required by law to st submit their budgets to local municipalities by May 1. Representative Foster MOVED to report CSSSHB 20 (EDU) out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSSSHB 20 (EDU) was REPORTED out of Committee with a "no recommendation" recommendation. Co-Chair Meyer announced that HB 131 and HB 132 would be postponed until March 4.