SSHB 148 - SCHOOL FUNDING ETC./ CHILD CARE GRANTS Number 543 CHAIRMAN BUNDE announced the next bill to be discussed was SSHB 148 "An Act relating to the public school funding program; relating to the definition of a school district, to the transportation of students, to school district layoff plans, to the special education service agency, to the child care grant program, and to compulsory attendance in public schools; and providing for an effective date." He said the committee had adopted a proposed committee substitute at the last meeting. It was not his intention to move the bill out of committee today as they are still awaiting the cost differential study, which will be incorporated into the bill. He announced that Jack Sherman was standing by to testify via teleconference from Barrow. Number 0591 JACK SHERMAN, Director, Business Affairs, North Slope School District, testified via teleconference from Barrow in opposition to the proposed CSSSHB 148 because of the escalation clause. He stated a tax rate of 7 mills would be devastating to the North Slope Borough. CHAIRMAN BUNDE asked Mr. Sherman if he knew if the North Slope Borough, Valdez, and Dutch Harbor were still the three wealthiest communities in the state? MR. SHERMAN believed that was correct. CHAIRMAN BUNDE announced that Eddy Jeans from the Department of Education was available to address the proposed CSSSHB 148 which changed the foundation formula from a per unit to a per student. He anticipated the cost differential study would point out some interesting changes relating to how money is distributed throughout Alaska. He referred to the concerns of the North Slope Borough regarding their local contribution of up to 7 mills and asked Mr. Jeans if he knew what the millage rate was in Juneau for education support. Number 0678 EDDY JEANS, Manager, School Finance Section, Education Support Services, Department of Education, said he didn't have that information with him. CHAIRMAN BUNDE asked if anyone was aware of what the millage rate was in Fairbanks? REPRESENTATIVE AL VEZEY believed it was 9 mills. Number 0724 CHAIRMAN BUNDE asked Mr. Jeans for his comments on the proposed CSSSHB 148 and the cost differential study. MR. JEANS indicated he would refrain from commenting until the cost differential study was released. He informed the committee that contrary to what he had indicated at the previous meeting, the side-by-side comparison of funding formulas would not be completed until the cost differential study has been released. CHAIRMAN BUNDE encouraged committee members to solicit comments on the proposed CSSSHB 148 from their local school board, particularly once the cost differential study is available. Number 0819 REPRESENTATIVE PORTER expressed interest in receiving a written summary of the proposed CSSSHB 148, including the cost differential study. Number 0847 REPRESENTATIVE BRICE commented that it was his understanding the Department of Education, through the judicial process and after much expense, had reached a settlement with Mr. Gilley, Superintendent of the Adak School. In light of that situation, he questioned whether the language on page 8, line 24 and page 9, line 4, needed to be strengthened. MR. JEANS said the proposed language actually strengthens the department's position. He noted the current statute basically refers to "shall maintain the monies and complete financial records in the disbursement of those funds." REPRESENTATIVE BRICE inquired if the committee should consider adding language that would provide direction to the department in the event a problem does arise. CHAIRMAN BUNDE indicated he would entertain an amendment if Representative Brice thought the additional language was necessary. He noted, however, the Department of Education had not indicated that additional language was necessary, but asked Mr. Jeans to verify that. CHAIRMAN BUNDE pointed out for the information of committee members, the counting period for funding is currently in October with a second counting period in February which has never been enforced. Schools who thought they would get additional students and consequently more money, would count in February. Conversely, schools that thought they had lost students, wouldn't count. He pointed out that double counting is an expense to the districts and may not be supported by the school districts. He encouraged committee members to get feedback from their local school districts because double counting is required under the proposed CSSSHB 148. Number 1060 REPRESENTATIVE BRICE referred to page 9, line 20 - 21, and asked for Chairman Bunde's thoughts on expanding local contribution to include a Native corporation for example, that might provide training on certain academic issues to a school district or a single site school. CHAIRMAN BUNDE conjectured that question should be directed to the Department of Education and/or the Department of Law. REPRESENTATIVE PORTER asked if in-kind services were defined? MR. JEANS stated currently, there is no specific definition. He added that in-kind services include janitorial, accounting, and other services; normally, services that a district would have to purchase. For example, much of the maintenance in the Kenai School District is provided by the borough. He noted that in-kind services are subject to an annual review by the independent audit firms. Number 1174 REPRESENTATIVE BRICE referred to page 10, lines 22 - 25, and expressed concern that, by omission, wage and hour considerations for school bus drivers who have a higher minimum wage are not being overlooked. MR. JEANS pointed out the wages are set in statute, so the department did not feel it was necessary to readdress it. Number 1242 CHAIRMAN BUNDE announced the proposed CSSSHB 148 would be heard again on Thursday, February 5.