SB 84-MILITARY YOUTH ACADEMY  8:00:03 AM CHAIR STEVENS announced that the first order of business would be SB 84. SENATOR CATHY GIESSEL, sponsor of SB 84, related that the bill does three things: it amends the state statute to change the funding mechanism for the Alaska Military Youth Academy (AMYA), it establishes the program in the Department of Military and Veterans Affairs (DMVA), and it updates the program name from Alaska Challenge Youth Academy to the Alaska Military Youth Academy. She explained the reason she was carrying the bill. She related how impressed she was with AMYA when she first encountered it. She said the program consists of kids who otherwise would "fall through the cracks." She shared a personal story about John Lopetrone, the carpentry teacher at AMYA. She stressed that the Academy makes a tremendous difference in kids' lives. She noted that the Academy has rigorous standards, which is what the kids need. 8:02:16 AM SENATOR GIESSEL explained that the Academy targets students between 16 and 18 that have dropped out of high school. It is a 22-week residential school program. It has graduated over 4,000 cadets. She noted that out of 27 states with similar programs, Alaska's program is ranked in the top five. 8:03:03 AM LINDSAY WILLIAMS, Staff, Senator Cathy Giessel, explained that currently under AS 14.37.40, about one-third of the program funding comes from a space/student calculation. The formula is equal to the Base Student Allocation (BSA), multiplied by 7 for each residential student, added to the BSA, multiplied by .6 for each non-residential student, and then any amount received by the program and by federal matching grants is subtracted. The formula was created in 2002 to protect a young and fledging program. Over the past decade the Academy has grown and proven to be very successful. It is time to move the program funding to a direct appropriation so that the Academy can budget and focus on results and graduation rates. SENATOR DUNLEAVY joined the committee meeting. MS. WILLIAMS pointed out that the Academy has been operating since 1993. It was never formally established in statute under the direction of DMVA. This bill helps to correct this oversight. She explained that in 1999, Senator Stevens, along with the legislature, encouraged changing the name of the program to the Alaska Military Youth Academy. 8:04:34 AM CHAIR STEVENS asked for an explanation of the funding mechanism and the impact of the fiscal note on the budget in the future. MS. WILLIAMS replied that the bill repeals the current BSA calculation and changes it to a direct appropriation from DMVA. CHAIR STEVENS asked how many students receive a GED versus a high school diploma and how many enter the military after graduation. SENATOR GIESSEL deferred to the Academy's staff to answer. SENATOR GARDNER asked about Section 2 of the bill, which makes the Academy a part of the National Guard Youth Challenge program. MS. WILLIAMS explained that it is simply a formality. By repealing the BSA, the reference to the Academy is removed; therefore, it needs to be formally established under DMVA. CHAIR STEVENS noted the letter previously referenced has not been sent to the committee. He requested the spelling of the person who sent the letter. SENATOR GIESSEL said it was John Lopetrone. 8:07:15 AM MCHUGH PIERRE, Deputy Commissioner, Alaska Department of Military & Veterans Affairs (DMVA), noted there were two fiscal notes; one from DMVA and one from the Department of Education and Early Development. He addressed the fiscal note from DMVA, which he said is a "zero change" and is a formality. The current operating budget is the vehicle that will fund the program. The effective date of the bill is for next fiscal year, which means there will be a direct appropriation from DMVA at that time. There is a total of $9.5 million operating dollars in FY 14, which includes $1.5 million in access authority. The Academy will not come from the Department of Education, but rather from a National Guard program in DMVA. CHAIR STEVENS asked how that will impact the state. MR. PIERRE said there is no fiscal impact to the state. The goal is to focus on graduating students. 8:09:33 AM SENATOR GARDNER asked about any expected changes to the funding of the matching grant program from the Department of Defense. She requested more information about not using the BSA with an October student count. MR. PIERRE addressed the first question by saying that DMVA has been given commitments from the National Guard Bureau that the funding will remain the same. In answer to the second question, he explained that DMVA's funding formula is a multiplier of the BSA which was needed in 2002 when the BSA was $3,000 per student. The needs of the program have changed and that funding does not fit. He said he does not have the expertise to say if it is relevant to a K-12 school. 8:11:03 AM SENATOR HUGGINS recalled the demographics of the Academy and termed it "a school of choice." MR. PIERRE deferred to Mr. Burton to answer. SENATOR HUGGINS noted the first line of the Academy letter and corrected that 30 percent of high school freshmen fail to graduate. He asked if the Academy is open to all students in Alaska, who must apply to be accepted. MR. PIERRE said yes. 8:12:35 AM MAJOR GENERAL THOMAS H. KATKUS, Commissioner, Alaska Department of Military & Veterans Affairs, introduced himself. CLYDE T. BURTON, Director, Alaska Military and Youth Academy, Alaska Department of Military & Veterans Affairs, introduced himself. MAJOR GENERAL KATKUS provided an overview of how the Academy evolved. He explained that the need for a youth academy was first identified 20 years ago and was put under the National Guard and the Department of Defense (DOD) in order to help prevent the high national dropout rate. The program was to target high risk youth and was designed to use a military approach on discipline, organization, and instilling values. It was not for the purposes of recruitment. He noted the program has been very successful. He said he could not predict DOD's future funding in light of today's economy. The State of Alaska has provided the majority of the funding, rather than the federal government. He explained that SB 84 would facilitate a needed change to the funding formula. The goal is to get more students to graduate, not to get more students in the program at the beginning. A direct appropriation provides the commission the opportunity to identify the Academy's needs each year and make a funding request. 8:15:04 AM MR. BURTON agreed with Major General Katkus's statements. He called the Academy a customer-service-oriented and results-based organization. In the past, with 330 students, there was less than a 50 percent success rate. The current class had the highest retention rate so far. He agreed that the current funding formula creates a ceiling and limits efficiency. CHAIR STEVENS noted the Governor's goals to increase the graduation rate and to enhance digital learning. He inquired how the military deals with a GED or diploma when accepting new recruits. He also wanted to know the number of graduates who earn their GED, versus a diploma. MAJOR GENERAL KATKUS replied that the Academy provides dropouts the ability to get the remaining credits necessary to graduate or a GED, both of which are acceptable for entry into the military. 8:17:36 AM SENATOR HUGGINS noted that students with a GED can go back to school to earn a diploma. He characterized the program as allowing those who are close to graduating to get a diploma and those who are not to go back to their school to earn the credits needed to graduate. MAJOR GENERAL KATKUS said that is correct. The Academy also provides students the opportunity to experience military culture or work. MR. BURTON pointed out that the program is voluntary. The student must volunteer for the program, which increases retention. Half of the class is made up of sixteen-year-olds, which is a great advantage toward getting the students back on track in order to graduate from their high school. The number of high school diplomas the Academy awards is small. 8:20:17 AM SENATOR DUNLEAVY asked how many staff are at the Academy. MR. BURTON replied that there are 75 staff and some unfilled positions. SENATOR DUNLEAVY inquired how many are teachers. MR. BURTON said eight are teachers. SENATOR DUNLEAVY asked if they are certified teachers. MR. BURTON said they are not certified. SENATOR DUNLEAVY asked if there is a chaplain at the Academy. MR. BURTON said there are voluntary church services every Sunday and guest chaplains lead them. SENATOR STEDMAN asked about the advantages and disadvantages of certified versus non-certified teachers. MR. BURTON replied that the Academy has extremely good teachers. He did not see an advantage of certification in the Academy's program. He noted the reading/writing teacher is certified. He stressed the holistic approach of the Academy's curriculum, with a focus on academics, as well as life skills, job skills, and fitness. 8:22:29 AM SENATOR DUNLEAVY asked if Mr. Burton had considered expanding the Academy to being a full-fledged military academy. MR. BURTON said he personally thinks that is a good idea; however, the Academy is constrained from doing so by the cooperative agreement it operates under. The Academy is only allowed to take dropouts. He noted the Academy has a great teaming relationship with the Department of Education and with school districts and does not wish to take away from public school programs. MAJOR GENERAL KATKUS further explained that the cooperative agreement consists of rules and regulations from the National Guard Bureau, the national program. 8:24:13 AM SENATOR HUGGINS asked Mr. Burton to verify if an Academy graduate went on to the Naval Academy. MR. BURTON said that was correct. SENATOR HUGGINS asked what a graduation from the Academy is like. MR. BURTON replied that the most recent graduation was very emotional and patriotic. There were 144 graduates. MAJOR GENERAL KATKUS described the growth of confidence shown in graduates by their firm handshakes. MR. BURTON pointed out that the graduates are sincerely grateful for their Academy experience. He noted that the standards of the Academy are very high. 8:27:12 AM SENATOR HUGGINS opined that it does not matter if the graduates have the diploma or the GED, the program provides hope and the ability to move forward when many had given up. He asked for an explanation of how the Academy demonstrates when a student has challenges. MR. BURTON said Senator Huggins is referring to the Hard Core Program involving consequences for behavior. 8:30:00 AM CHAIR STEVENS noted his appreciation for military training and the Academy. CHAIR STEVENS announced that SB 84 would be held in committee.