SB 3-FUNDING FOR SCHOOL MEALS    8:03:24 AM CO-CHAIR MEYER announced the consideration of SB 3. He reminded committee members that [CSSB 3( ), version B was before the committee.] 8:04:59 AM CHRISTY HARVEY, Staff to Senator Bill Wielechowski, sponsor of SB 3, said this is an important bill and a great investment both for the short and long term effects for Alaska and Alaska students. CO-CHAIR MEYER asked what the federal match currently is. MS. HARVEY answered that currently there is a federal match of about $32 million and the school outlay is about $58 million. The remainder of that is partially made up by students who pay for their meals. There is only about a $2.1 million shortfall that the schools take out of their operating budgets, she explained. CO-CHAIR MEYER asked if there are any concerns about the federal match going away. MS. HARVEY answered no; not in the recent past. She explained that this program usually seems to always have a fairly solid federal base. At ease from 8:07 a.m. to 8:09 a.m. 8:09:35 AM CO-CHAIR MEYER asked Ms. Harvey if she could explain the difference between the original bill and version B. MS. HARVEY answered that the original bill states that the department would provide a base amount of 15 cents for lunch or 35 cents for breakfast. This language, she explained, implied that a school did not have to do both. However, there was concerned that this could be challenged or confused by some of the different school departments. For this reason the language was changed from "or" to "and" in the CS [page 1, line 8]. This makes it clearer that schools can apply for both a lunch and breakfast program. CO-CHAIR THOMAS asked for confirmation that this is version B. MS. HARVEY replied yes. At ease from 8:11 a.m. to 8:14 a.m. 8:14:22 AM CO-CHAIR MEYER clarified with Ms. Harvey that the committee is working with CSSB 3( ), version B. MS. HARVEY replied yes. She reiterated that it was important for schools to know that both funds could be received. For this reason the current committee substitute reads: "15 cents for lunch and 35 cents for breakfast" [page 1, line 8]. Whereas version M reads: "15 cents for lunch or 35 cents for breakfast". CO-CHAIR THOMAS asked if that was the way the fiscal note was prepared. MS. HARVEY answered yes. 8:15:46 AM SENATOR STEVENS said that he understands some parents may not have the financial stability to feed their children before school and that the state must step in to take on that responsibility. The problem, however, with regard to the success of K-12 education in Alaska, is that many students arrive at college unready to compete. He asked when breakfast is being served and if it is affecting the educational day. MS. HARVEY answered that it is her understanding that breakfast is served before the school day begins. She added that she believes this program is an enhancement to the education process and not a distraction. SENATOR STEVENS asked who supports this bill. MS. HARVEY answered that all of the school boards, nurses, and teachers that she has spoken to are in support of SB 3. SENATOR STEVENS asked what Department of Education and Early Development's (DEED) stance is. MS. HARVEY replied that the department has taken a neutral stance on the bill. SENATOR STEVENS said he thinks DEED needs to comment. He said he wants to know why the department is not taking a position on this bill. CO-CHAIR THOMAS agreed. He said that if this is such an important issue, as people have been indicating, it seems the department would take that position. DEED should at least give an explanation as to why it has taken a neutral stance. CO-CHAIR MEYER said that the state currently has a good federal match if the state contributes the amount laid out in SB 3. His explained that his concern is if that federal match is taken away then the duty falls on the state. 8:20:25 AM SENATOR STEVENS asked why DEED is unwilling to take a stance on the bill. ELIZABETH NUDELMAN, Director, Division of School Finance, Department of Education and Early Development (DEED), answered that DEED does not have a position on the bill and are here for technical assistance. SENATOR STEVENS said this causes him concern and seems to imply that if DEED is not supporting the bill then it is opposed to it. MS. NUDELMAN replied that she does not want the committee to pick between the two stances for the department's position. She reiterated that DEED can provide technical assistance and answer any questions but the department does not have a position on the bill. SENATOR STEVENS said that he understands that DEED currently does not have a commissioner; however, in order to deal with many of these issues one is needed. He continued that it seems unacceptable that DEED is unwilling to testify for or against a bill that affects education so much. MS. NUDELMAN replied that the department's commissioner will be on staff this week and she hopes he will be able to speak with the committee soon. She repeated that she can only give technical assistance on the bill. SENATOR STEVENS suggested that, if this is the case, the committee should hold any issues on education until there is a commissioner who is ready to speak on the issues that need to be addressed. SENATOR DAVIS asked what kind of technical assistance Ms. Nudelman could provide to the committee. MS. NUDELMAN answered that DEED prepared the fiscal note for SB 3 and she would be happy to go through it if the committee is interested. SENATOR DAVIS replied that this was not necessary. She suggested that the acting commissioner testify before the committee. CO-CHAIR MEYER agreed. He suggested that the acting commissioner speak to the policy side of the bill. 8:25:48 AM LES MORSE, Acting Commissioner, Department of Education and Early Development (DEED), said he can only add that this bill is not in the governor's budget and is a policy decision left in the hands of the legislature. He stressed that the argument is not about whether food and nutrition is important or not, the department is only staying neutral to how the means of that food is provided. 8:27:39 AM CO-CHAIR THOMAS moved to report CSSB 3( ), version B from the committee with individual recommendations and attached fiscal note(s). There being no objection, CSSB 3(EDC) moved from the Senate Education Standing Committee.