CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 47(FIN) "An Act relating to boarding schools operated by school districts; and providing for an effective date." 3:14:56 PM RYNNIEVA MOSS, STAFF, SENATOR JOHN COGHILL, explained that the bill expanded on a concept included in past legislation introduced by the sponsor (HB 16 in 2005); prior to the bill's passage, students had been paid a stipend to attend a school in another area when a village school was closed. The capability had been expanded to allow students in grades 9 through 12 to receive a stipend while attending boarding school facilities. The current legislation eliminated a restriction limiting eligibility only to schools that had been in operation prior to January 2005 (Section 1). The bill would expand to include magnet schools, which would enable them to qualify for stipends. Section 2 increased the stipend paid to the schools. Section 3 provided a provision to allow school districts to contract for room and board services. Section 4 would repeal a provision that would limit the Department of Education and Early Development (DEED) to approving only three additional schools. Additionally, the bill would repeal the definition of district operated statewide residential education programs (the definition had been moved to Section 1 of the bill). Ms. Moss communicated that the bill expanded the opportunity to magnet schools and allowed for DEED to add additional boarding schools. She stated that the bill would allow for magnet schools with variable terms to accommodate some exciting things underway in rural Alaska including schools in Kotzebue to train high school students for jobs at Red Dog Mine; and Bethel had a program that it wanted to expand into to airline freight industry, which would provide an opportunity to many rural students. She commented on the challenge facing children in rural Alaska who wanted to go to college, but did not have the adequate education resources to get into college. She likened the situation to a quote by Vance Law "when you're in a slump it's almost as if you look at a field and it's one big glove." The goal was to "close the glove" and provide the children with an opportunity. 3:18:00 PM Co-Chair Stoltze recognized Senator John Coghill in the audience. LISA RIEGER, COOK INLET TRIBAL COUNCIL (via teleconference), spoke in support of the legislation. She noted that support existed statewide. 3:19:46 PM JERRY COVEY, EDUCATION CONSULTANT, CITIZENS FOR THE EDUCATIONAL ADVANCEMENT OF ALASKAN'S CHILDREN AND COOK INLET TRIBAL COUNCIL (via teleconference), spoke in support of the legislation. He believed the increased stipend was justified based on the delivery cost of education. He stated that the district variable length programs were favorable and would improve the quality of rural education. He believed that the partnership between school districts, non-profits, and Native organizations in relation to residential services for students was also positive. Co-Chair Stoltze asked whether the bill provided support for children in public K-12 education. Mr. Covey replied that the bill would provide residential stipend funding for students in grades 9 through 12. Co-Chair Stoltze asked whether the bill would provide additional support within the public education system. Mr. Covey replied in the affirmative. Ms. Moss clarified that the bill covered grades 9 through 12. Co-Chair Stoltze understood that the bill related to a subset within the grades K-12. 3:22:57 PM Representative Wilson asked whether there was concern about students left behind when others were taken out of public schools and put in boarding schools. Mr. Covey replied that when students were taken out of school districts to attend statewide residential schools the funding traveled with them. Under the variable length programs the students stayed within their school districts; therefore, the district did not lose funding. Co-Chair Stoltze noted that the department could speak to the question as well. Representative Wilson was concerned that removing students from smaller districts put the districts at risk. Co-Chair Stoltze commented on the potential of being put in a position to make a value judgment on whether a student should be held back from higher or different aspirations. 3:24:59 PM Co-Chair Stoltze asked DEED to comment on Representative Wilson's question. Representative Wilson noted that the bill applied to grades 9 through 12 and that no program existed for K-8 if school districts closed. She wondered whether the department had looked at how taking numerous students from a district impacted the district. LES MORSE, DEPUTY DIRECTOR, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, replied that the issue had occurred with Mt. Edgecumbe for years and had occurred since 2005 with the additional boarding schools. He stressed that the administration strongly supported families and children having the choices and options. He stated that there was definitely an impact on school districts; however, he did not believe the impact overrode the opportunity to choose a boarding school route. Co-Chair Stoltze asked for clarification on the funding trail. Mr. Morse replied that for the legislation's variable length programs the Base Student Allocation (BSA) would remain in the school district. He communicated that the only [funding] item the bill addressed was a stipend. However, when students attended boarding schools for a full school year the BSA and stipend went to that school. Representative Wilson asked for verification that Mr. Morse believed that a family's ability to choose where a child went to school was positive. Mr. Morse replied that the choice provided by the bill was a good thing. Representative Wilson remarked that choice was good. Representative Holmes wondered if the variable length programs would be greater or less than nine months and whether the stipend would be paid for the same number of months. She noted that the bill referred to the payment of a stipend for nine months and included variable length and 180-day school terms. Mr. Morse answered that the intent was for the variable length programs to be offered within the full nine-month scope. He used the example of multiple six-week terms and stated that even though there would be several students experiencing the terms they would receive one full-year stipend. For example, it would come out to look like there were 30 students experiencing the program in terms of the amount of money dedicated; but, in reality it would be many more students because there would be 30 students per variable length term. 3:29:22 PM Representative Kawasaki asked whether the cities where the three boarding schools were located (Nenana, Galena, and [Bethel]) had property taxes or another local tax base that helped pay for the schools. Ms. Moss was not certain, but believed that Galena had a tax. Mr. Morse stated that the Lower Kuskokwim Learning Academy in Bethel was in the midst of a Regional Educational Attendance Area (REAA) and would not have a tax base. Co-Chair Stoltze replied that the City of Galena had a total of 487 residents with a 3 percent sales tax; he surmised the city could not be supporting a school system on a 3 percent sales tax and no other taxes. Ms. Moss believed Nenana also believed that Nenana had a tax. Co-Chair Stoltze relayed that the City of Nenana had a 12 mil property tax. Representative Munoz asked whether the bill applied to Mt. Edgecumbe. Ms. Moss replied in the negative. She stated that Mt. Edgecumbe was a state operated school that was fully funded through the legislature by appropriation. She noted that the cost per student of a boarding school education was approximately half of the Mt. Edgecumbe cost. 3:32:54 PM Vice-Chair Neuman shared that he had spent time in Galena and had stayed at the school with the students. He recalled that the students voiced that they were at the school because they wanted to improve their lives. He referred to the cost of education and stated that 80 percent to 90 percent of the students were at risk for drug or alcohol abuse. The schools provided students with an education to help improve students' lives. He realized the cost of the schools, but stressed the importance of turning lives around. He spoke to students' energy to learn different trades. He noted that the regional learning centers each offered different programs in order to increase options for students. He spoke in strong support for the program. He added that it would have a positive impact on the cost of education in the end. SB 47 was HEARD and HELD in committee for further consideration. 3:35:18 PM RECESSED 3:58:25 PM RECONVENED