SB 147-BASE STUDENT ALLOCATION  9:30:41 AM CHAIR STEVENS announced the consideration of SB 147. He noted Version U committee substitute (CS) was before the committee. 9:31:09 AM THOMAS PRESLEY, Staff, Senator Berta Gardner, Alaska State Legislature, Juneau, Alaska, presented information related to SB 147 on behalf of the sponsor. He said there were no changes to Version U since the first hearing of it. He explained that the bill changes the formula foundation to say that the BSA is increased by $404 on a per student basis. It ties future increases to the Anchorage Consumer Price Index. CHAIR STEVENS requested comments from the Department of Education and Early Development (DEED). MICHAEL HANLEY, Commissioner, Department of Education and Early Development (DEED), Juneau, Alaska, presented information related to SB 147. He said the Governor has put three years of modest increments in SB 139, which recognizes Alaska's current fiscal situation. He said the department supports the Governor's bill. CHAIR STEVENS opened public testimony. 9:33:16 AM KATIE OLIVER, President, Kodiak Island School Board, Kodiak, Alaska, testified in support of SB 147. She described the Kodiak district and the results of four years of flat funding of the BSA. She detailed the successes of the school district. She said the $404 increase would eliminate the deficit and prevent cuts in staff and programs. She opined that the $85 BSA increase, as seen in SB 139, would not accomplish those things. The annual adjustment for inflation included in SB 147 would bring a much needed level of predictability for the budget development process. 9:36:11 AM MIKE COONS, representing himself, Palmer, Alaska, testified in opposition to SB 147. He questioned where the monies would come from. He agreed with Senator Dunleavy that funds should not be spent on adult education. He agreed with Senator Stedman's comment that inflation proofing violates the constitution. He applauded the cuts the Anchorage District is making. He addressed teacher/student ratio. He testified in support of the BSA increase in SB 139. 9:40:01 AM DEBBIE EDWARDSON, President, North Slope Borough School District Board, Barrow, Alaska, testified in support of SB 147. She described the effects of flat funding on the district. She talked about rising costs of living and the costs of education in Barrow. She shared a personal perspective. She related the successes and needs of the district. She projected a $622,000 deficit for the upcoming fiscal year. She requested that the legislature increase the BSA by a minimum of $250 per student in order to continue to provide a high quality of education for children. 9:44:42 AM CHAIR STEVENS closed public testimony and held SB 147 in committee.