SENATE BILL NO. 36 "An Act relating to transportation of public school students; relating to school construction grants; relating to the public school foundation program and to local aid for education; and providing for an effective date." Co-chair Sharp convened the meeting and asked Senator Phillips to make the necessary announcements regarding SB 36. Senator Phillips said the foundation formula bill was scheduled for public hearing tonight from 6:00 p.m. until 9:00 p.m. Co-chair Sharp confirmed that the first public hearing was scheduled for this evening and tomorrow evening from 4:30 p.m. until 6:30 p.m. and Saturday would continue from 10:00 a.m. until 3:00 p.m. or as needed. Senator Phillips advised there would be work draft form of the bill for the committee to consider with an attached proposed amendment on Tuesday. It was marked 0-LS0070\H.4, Ford, 2/25/98. For this evenings meeting the Department of Education would be present and distribute spread sheets based on the following assumption: one, FY '99 level of funding requested by the Governor; two, FY '99 ADM (average daily membership) of $130,800.55. The FY '99 foundation support includes $633,021,600 in general funds; $20,791,000 PL81874 funds and the public school trust funds of $7,118,700. This made for a grand total of $660,931,300 or $29,253.6 million more than the general fund only level of $631,677,700 as discussed earlier. Senator Adams asked if these numbers included new enrollees, single sites and other resources that perhaps are not included in this particular number. Co-chair Sharp said it included the Administration's student estimate. Senator Pearce referred to the projected FY '99 number of students from the Department of Education. The $633 million is the Governor's request for the foundation formula. The $3 million that was the next line down in the budget, the single site money, was not included in the run. Senator Phillips said further the amendment along with the spreadsheet from the Department would be distributed for Tuesday's meeting. The amendment corrected an error in the work draft, section twenty-six, which describes the funding for a two-year transition period. The spreadsheet, generated by the Department, would illustrate the per student funding formula using the new transition language. He said he felt everyone who was interested in the education of our children would appreciate the legislation allocating simply and equitably on a per student basis to individuals. He then asked the Co-chair to announce the schedule for public testimony this evening. Co-chair Sharp indicated that testimony would be limited to three minutes as customary this evening over a three-hour period. He wanted to work around the State giving everyone a chance to speak. He said the same guidelines would be followed Friday evening and Saturday. Senator Adams asked if it would be possible for the Department to come to the table and explain that with the given numbers how the single sites would be affected. Co- chair Sharp advised Senator Adams that the Department was given instructions to use assumptions and to do the spread sheets accordingly. When the bill comes back before the committee the department will provide a briefing. He cautioned that assumptions change and budgets are modified by the Administration and the Legislature. The starting point was the figures mentioned and the formula has some accommodations for single site allotments in the calculations. He hoped the spreadsheets would be available around noon today and they would be provided by wire service to all the LIO's along with the CS that has been made available electronically. Senator Phillips said he would provide any additional information Senator Adams required. Senator Adams expressed concern in no allocation being made to the North Slope and felt it was an error. He also said taxation of unincorporated areas was not simple and equitable. He again referred to the McDowell Study and said it was flawed and was done too quickly. Senator Phillips asked the Co-chair to allow time for Senator Adams to participate in a question and answer period with the McDowell group as he wasn't present at their original invitation before the committee. Co-chair Sharp advised he would try to get something set up again for next week. Senator Adams asked for approximately five minutes at this evening's meeting to show why the study was flawed and then he would also put his comments in writing. Co-chair Sharp said he would allow Senator Adams five minutes before the taking of public testimony this evening. Senator Phillips concurred. Senator Torgerson requested that the McDowell group be given adequate time to respond to Senator Adams' questions and Co-chair Sharp they could respond next week. Senator Adams asked if there was anything else the Department required. Richard Cross, Deputy Commissioner, Department of Education was invited to join the committee. He advised they had all the information needed to do runs. He hoped they would be completed and checked by noon or shortly thereafter. Co-chair Sharp reiterated that the numbers were to be based on assumptions and were subject to change as far as total dollars. He set aside SB 36 until this evening at 6:00 p.m. He explained the committee would take public testimony for the next three days and then on Tuesday morning start in working on the bill at committee level. The next bill the Co-chair called was SB 273.