SB 102-UNFUNDED ED. MANDATES; TRAINING; TEACHERS  CHAIR DUNLEAVY reconvened the meeting and announced the consideration of SB 102. 4:50:08 PM SHEILA PETERSON, Staff, Senator Mike Dunleavy, introduced SB 102 on behalf of the sponsor. She said it is a collaborative effort between many people and a response to school districts' pleas for relief from unfunded mandates. She provided the following sectional analysis: Section 1. Limits AS 14.03.073, which allows students to challenge courses for credit, to apply only to students in grades nine through 12. Section 2. Clarifies that school districts do not have to establish assessment tools for all courses offered in grades nine through 12. Section 3. Requires the state Board of Education and Early Development (the board) to adopt regulations that include a list of approved organizations that offer assessment tools meeting the requirements of AS 14.03.075(b). SENATOR GARDNER suggested only providing a list of approved assessment tools because an organization might provide both good and poor assessments. MS. PETERSON said they may want to look at that to see if there might be a better term to use. The intent is that school districts would not need to do independent research to find the best assessment tools, nor create their own assessment tool. Section 4. Requires the Department of Education and Early Development (the department) to provide an annual report that includes a summary of school district revenues and estimated funding for each school district. The intent is to put the "five-pager" information on the web. SENATOR GARDNER asked if this document already exists and the bill would require it to be published on the web. MS. PETERSON said yes. Section 5. Requires the board, before adopting, amending, or repealing a regulation, to prepare a fiscal note estimating the effect of the action on school district budgets for the next fiscal year. Section 6. Requires regional school boards to establish procedures to provide required training for school employees. Section 7. Requires borough and city school boards to establish procedures to provide required training for school employees. Section 8. Requires the board to establish procedures for training employees of state boarding schools. SENATOR HUGGINS asked which training programs are not included. MS. PETERSON said the intent was to include all training programs, however, suicide training wasn't included because it sunsets in 2016; it may be put back in. SENATOR HUGGINS said he was asking whether some school districts weren't included. MS. PETERSON replied she didn't believe so. SENATOR GARDNER asked for the reason behind the five-year cycle. 4:59:11 PM MS. PETERSON said the five-year cycle was recommended by a variety of organizations and it seemed reasonable. SENATOR STEVENS added that a district could include additional training programs if they wished to. MS. PETERSON agreed. It allows for flexibility within the school districts. Section 9. Allows school districts to determine how frequently to provide training related to selection of nondiscriminatory textbook and educational materials. Section 10. Allows school districts to determine how frequently to provide employee evaluation training for certificated school employees. Section 11. Allows a school district to implement a layoff plan for tenured teachers without a decrease in school attendance or a decrease in the school district's basic need. SENATOR GARDNER asked if the layoff plan is needed because there isn't enough funding to retain the tenured teachers. MS. PETERSON said this idea came from one school district that was unable to implement the layoff plan. Responding to a further question, she said it was the Mat-Su School District. Section 12. Allows a school district to determine how frequently to provide alcohol and drug related disabilities training for school teachers, administrators, counselors, and specialists. Section 13. Allows school districts to determine how frequently to provide school crisis response training. Section 14. Requires continuing education related to domestic violence and sexual assault to be provided once every five years for state or local public employees. Section 15. Requires the department to prepare a fiscal note describing the effect of a bill or resolution on each school district in the state, if the bill or resolution would affect schools. Section 16. Requires agencies to describe the effect of a proposed action on each school district in the state, if the proposed action will affect schools. Section 17. Modifies state agency training intervals for recognition and reporting of child abuse for mandatory reporters of child abuse and neglect and allows school districts to determine how frequently to provide the training. Section 18. Repeals AS 14.17.520, relating to the minimum expenditure for instruction required for school districts. 5:06:42 PM SENATOR STEVENS expressed concern with the clause in Section 18. He thought it was reasonable that 70 percent of school funds go to instruction and 30 percent to administration. It is saying the established educational goals aren't valuable. MS. PETERSON said the waiver request is mostly due to fuel and maintenance costs. 5:08:57 PM ELIZABETH NUDELMAN, Director, School Finance and Facilities Section, Department of Education and Early Development (DEED), answered questions related to SB 102. CHAIR DUNLEAVY asked if the superintendent's salary is included in the 70 percent. MS. NUDELMAN answered no. Included in the 70 percent calculation are five categories of instruction. There are three categories of non-instruction. CHAIR DUNLEAVY asked if most schools that apply for a waiver are rural schools. MS. NUDELMAN replied that many are rural. Responding to a further question, she explained that some have a road system and are categorized as rural. CHAIR DUNLEAVY said the concern was that 70/30 should be a tool for funneling money to instruction. He asked for the department's opinion on the 70/30 and whether a waiver has ever been denied. MS. NUDELMAN explained that the waivers go to the State Board of Education and zero waivers have been denied over the years. Sometimes districts have been asked to explain expenditures outside of instruction. SENATOR STEVENS asked what controls there would be if the 70/30 split is removed. MS. NUDELMAN replied that those decisions are made at the local level. The split provides an opportunity for the Board to hear from districts that are not able to meet those percentages. 5:13:57 PM SENATOR HUGGINS recalled that in the five largest school districts about 90 percent is spent on salary and benefits. MS. NUDELMAN agreed that has been a reference number. SENATOR HUGGINS recalled that the superintendent at Adak was paid for several years after the school shut down. CHAIR DUNLEAVY noted that in rural Alaska instructional dollars had to be used for teacher housing. He asked if they have to prove why they're asking for a waiver. MS. NUDELMAN said even without the requirement for the waiver, the department has a statutory requirement to review the operating budgets for reasonableness. Additionally, if a waiver is requested they look at the reasons to see if they're supported by facts. 5:17:56 PM SENATOR STEVENS suggested taking fuel oil out of the equation if it's the biggest problem and the goal is to ease the pressure on small school districts. CHAIR DUNLEAVY asked if the department has taken a position on this section addressing the 70/30 rule. LES MORRIS, Deputy Commissioner, Department of Education and Early Development (DEED), answered questions related to SB 102. He said several years ago the Board asked that the 70/30 rule be repealed, and then changed their minds after learning more about it. There have been varying positions over time, but the department hasn't taken a position on this recently. CHAIR DUNLEAVY concluded that SB 102 is a result of discussions with school districts and he views it as a tool to help give school districts breathing room so they can teach kids. He used several analogies to make his point. SENATOR GARDNER asked, in the 70/30 rule, what part of the application process would go away if schools still have to do the accounting. MS. NUDELMAN said they would no longer need to write a letter to the Board explaining why they're below the 70 percent. SENATOR GARDNER countered that the bookkeeping would remain the same. MS. NUDELMAN said correct. CHAIR DUNLEAVY noted the $1.2 million fiscal note. He asked if there was a fiscal note to implement the mandates discussed in the bill. MS. NUDELMAN explained that the fiscal note is related to the language in Section 4 and applies to the department, not the unfunded mandates. It relates to the department providing a tool on the website with raw data and formulas to manipulate and estimate the foundation program funding. There is a difference between providing a detailed report (the five-pager), and a calculating tool, which is not currently available. MR. MORRIS noted there are two fiscal notes. CHAIR DUNLEAVY said this bill will require ongoing conversations and meetings on unfunded mandates throughout the Interim. CHAIR DUNLEAVY held SB 102 in committee.