SENATOR RANDY PHILLIPS introduced SB 65 (CENTRALIZED CORRESPONDENCE STUDY) as the first order of business. Number 025 SENATOR JIM DUNCAN, prime sponsor of SB 65, explained that the Centralized Correspondence Study program currently receives its funding under AS 14.17.022, which allows accounting only of elementary students and not secondary students. It is prorated at 65 percent of the unit value. Over the years, it has been obvious that that funding scenario has created an inequity since the centralized correspondence unit provides services to over 1,000 students, half of those students being in high school. The result is that the correspondence study program is grossly underfunded to continue the valuable service its provides throughout the state. Section 1 of SB 65 formally recognizes centralized correspondence study as a public school with a minimum 180 day term for students. Section 2 would allow the school to count the roll of both elementary and secondary students for funding purposes. Concluding, Senator Duncan said the Centralized Correspondence Study program makes a valuable contribution to education, and it needs to be properly recognized and have the adequate funding for the program to continue. Number 070 BILL ELKINTON, a Centralized Correspondence Study teacher, said the Centralized Correspondence Study program is a full- fledged school which provides its students top quality education. Mr. Elkinton presented a history of the CCS program which had its beginnings in territorial days, primarily providing a service to rural children of elementary age. The program has expanded throughout the years and now includes courses in Alaska studies and Alaska science. He shared postcards, letters and pictures provided by CCS counselor Gail Haynes attesting to the level of education received by students served at CCS and expressing their appreciation for that education. Mr. Elkinton noted that approximately five years ago CCS added a summer program which necessitated added materials, wharehouse space, personnel, etc. However, a large block of the funding for summer school was cut out of the budget, and it made very apparent the need for equitable funding. SB 65 seeks to move the CCS program towards equity in school and teacher status. Mr. Elkinton said the membership of CCSEA supports the HES committee substitute, and he urged its favorable and prompt passage out of committee. Number 225 SENATOR LEMAN noted that there was a state spelling bee in progress, and he asked if any CCS students were participating. BILL ELKINTON acknowledged that there were CCS students taking part in the spelling bee. He added that they seek to involve their students in math competitions, spelling bees, Battle of the Books, etc., but some of these activities have had to be curtailed because of funding cuts. number 263 JACK CADIGAN, a CCS teacher, stated he was representing CCSEA, the teachers' association for centralized correspondence schools. He said the CCS program can offer programs in such courses where the smaller districts individually cannot, and some of the smaller districts purchase their services in this regard. Mr. Cadigan said this is a real need as far as the equity in secondary funding goes, it is a real need for total equity towards being a school, and SB 65 will meet those needs. Number 290 SENATOR LEMAN asked if it was possible for students to use centralized correspondence to supplement their other schooling, and JACK CADIGAN responded that students do that in some cases. Number 316 DARBY ANDERSON, Superintendent, Centralized Correspondence School, Department of Education, stated the department's support for the legislation. Ms. Anderson clarified that when CCS provides services to students currently enrolled in other districts, those districts contract with and pay CCS for those services. Ms. Anderson said the CCS is extremely cost effective. Their cost per pupil is $2,600. She noted that it would cost the state an additional $1.2 million if secondary students that are currently enrolled in correspondence school were enrolled in a local school district. The primary change the legislation would make is to allow them to use a secondary formula and continue to offer a qualify secondary program. Ms. Anderson informed the committee that the fiscal note is based on FY 93 actual; secondary funding would generate an additional $351,400; the remaining figures project a 10 percent increase in enrollment each year. There being no other witnesses present to testify, SENATOR RANDY PHILLIPS asked for a motion to move SB 65 out of committee. SENATOR LEMAN moved that CSSB 65(HES) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.