CS FOR SENATE BILL NO. 216(FIN) "An Act relating to the calculation of state aid for schools that consolidate; relating to the determination of the number of schools in a district; and providing for an effective date." 1:35:31 PM Co-Chair Foster shared that the bill had been heard on Wednesday, April 18. He asked the sponsor to address the committee. SENATOR NATASHA VON IMHOF, SPONSOR, introduced herself and was available for questions. Representative Guttenberg had a question for the department. 1:37:27 PM Representative Guttenberg discussed that the Village of Rampart school had been shut down when enrollment fell below the minimum daily requirement. He detailed that a dynamic new leader had brought people back to the community and the school had been reopened. He noted that school attendance was based on October attendance data. He remarked that the Yukon Koyukuk School District was huge geographically. He asked what support had been provided to the school to help it reopen, hire teachers, and fill the fuel tank, prior to October. He observed that the situation was unique, and he hoped it did not happen again. ELWIN BLACKWELL, SCHOOL FINANCE MANAGE, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT (DEED), answered there were schools that closed from time to time that were later reopened. One of the larger issues with the Rampart school was that it had been closed for approximately 15 years. The department did not have any additional funding outside of the foundation formula to put towards opening up the school. When a district notified DEED of its plans to reopen a school, the district assured the department the school would have at least 10 ADM [average daily membership] for the count period. Once the department went through the count period if a school had 10 ADM, the school went through the school size adjustment and it received money through the foundation program. The district would have the opportunity to ask for an advance on its foundation funding in order to cover expenses while waiting. The department trued up the information in the last three months of the year based on the October counts. He reiterated that a school could ask for money upfront with the anticipation it would receive more money later in the school year. He noted it had happened one time that he could recall. Representative Guttenberg stated the bill dealt with a similar situation in Anchorage, the largest school district in Alaska. He referenced the smallest school districts without any resources. He was trying to understand it. He relayed he had represented numerous schools along the Yukon [River] down to the coast. He spoke to trying to figure out what was available for districts without any resources that had to start hiring in July and filled the fuel tank by barge once in the summer. 1:40:52 PM Representative Wilson asked for verification that the only single-school school district the bill pertained to was Hooper Bay. SANA EFIRD, DEPUTY COMMISSIONER, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, replied in the affirmative pertaining to Section 2. Representative Wilson referenced how division was done for [a community with an ADM of greater than] 425 students. She wondered if the division would be grades K-8 and 9-12. She asked how the division would be determined for Hooper Bay. Mr. Blackwell replied that under Section 2 the K-6 ADM and 7-12 ADM populations would each be run through the school size adjustment to end up with two adjustments for a single facility. Representative Wilson assumed it pertained to the $386,300 in Fiscal Note 3 [OMB Component Number 2804]. She wondered when a school was divided whether it was possible for one to fall under a smaller school category. She did not know how the 425 was divided. She explained there was a portion for smaller schools, but one school under discussion was not small. She remarked that the school was dinged because there were over 400 students. She thought it was positive that one school had been built instead of two, meaning the district could make more money. She asked if the size of the school went through the formula as if it was two. Mr. Blackwell answered in the affirmative. He explained that under the foundation formula, a community with a single facility housing 101 to 425 ADM ended up with two adjustments. He detailed the community received an adjustment on K-6 and 7-12. In the case of Hooper Bay, under the same statute if a community went above 425 ADM, each facility received a single adjustment. Once the 425 mark was exceeded, the community received one adjustment instead of two. The bill would help fix the problem. Representative Wilson asked for verification it [Hooper Bay] was the only school in the predicament. Mr. Blackwell answered in the affirmative. Currently it [Hooper Bay] was the only school with an ADM above 425, with a single school in a community. Co-Chair Seaton referenced testimony from the previous bill hearing. He detailed there was a provision under subsection (l) specifying that a district could not reopen and reconsolidate a school that had been consolidated within the past seven years. He asked for verification that it was not the bill's intention to have closed schools reopen and then close to count as reconsolidated numbers. Senator von Imhof answered in the affirmative. She detailed there was a provision specifying a school could not consolidate and reopen within a seven-year period. Under extenuating circumstances, a district may apply to DEED for approval to reopen a school. 1:45:05 PM Vice-Chair Gara did not see any negative attributes of the bill. He surmised that schools that could consolidate currently - it was mostly an issue impacting Anchorage - would receive a smaller penalty for consolidating and there would be no cost to other school districts. He asked for verification there would be no detriment to other school districts. Ms. Efird answered in the affirmative. She explained that the option was voluntary, and the department had no problem with the bill. Vice-Chair Gara reviewed the two fiscal notes from the Department of Education and Early Development. The first note from DEED showed no fiscal impact on the foundation program [OMB Component Number 141]. The second fiscal note (OMB Component Number 2804) from DEED included a fund capitalization of grants and benefits of $386,300 to the Public Education Fund. Co-Chair Seaton MOVED to REPORT CSSB 216(FIN) out of committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, CSSB 216(FIN) was REPORTED out of committee with a "no recommendation" recommendation and with one previously published fiscal impact note: FN3 (EED); and one previously published zero note: FN4 (EED). 1:47:29 PM AT EASE 1:49:34 PM RECONVENED