SENATE BILL NO. 95 "An Act relating to the combination of grades that constitute junior high, middle, or secondary school." Senator Phillips explained that this legislation would provide a mechanism to alleviate an overcrowding situation in an Anchorage high school. DEBBIE OSSIANDER, Anchorage School Board testified via teleconference from Eagle River. She stated that this legislation addresses a specific problem in the Anchorage school district. She noted that those schools, which are more geographically isolated than the ones in the Anchorage bowl, are being unfairly impacted by current regulations. She explained that Chugiak High School is the most overcrowded in the Anchorage School District, but under current regulations it is impossible to qualify for state reimbursement to address the problem. She pointed out that this current legislation would make less stringent the requirements to qualify for relief. She then gave specific characteristics of Chugiak High School's overcrowding situation. EDDY JEANS, Manager, School Finance and Facilities Section, Department of Education and Early Development stated that this legislation's related fiscal note reflects the increased eligibility for districts to qualify for additional monies for major maintenance or construction. He added that this legislation allows the allocation of secondary square footage for six graders who are located in middle schools. He noted that overall the system implemented by this legislation would allow reimbursement under the debt retirement program or the school construction grant program as appropriated by the legislature. He then outlined the fiscal note figures more specifically. He explained that these figures would not be retroactive. Senator Phillips explained that the figures referenced in the fiscal note would be the maximum potential of monies necessary to rectify this overcrowding problem. He then gave a general overview of other school districts statewide that are also nearing saturation. Mr. Jeans outlined the reasons behind a reduction of funds from $26 million to $18 million related to this legislation's fiscal note. He explained that the fiscal note was originally prepared under the assumption that all six-grade students would move to a middle school concept, reflecting the maximum possible increase in eligibility if this concept was initiated. Senator Wilken referred to page three, lines 15 - 23, and asked for an explanation for the proposed language addition. This section reads: (A) projected long-term student enrollment that indicates the district has inadequate facilities to meet present or projected enrollment or has unhoused students; for purposes of this subparagraph, (i) students are considered unhoused if the students attend school in temporary facilities; and (ii) sixth grade students shall receive the space allocation given to secondary students when the sixth grade students are housed in a middle school, junior high school, or high school that includes the sixth grade; Mr. Jeans explained that this language would give districts secondary space allocation if the students are housed in a middle school. He noted that students are considered unhoused under section (i) if the students are in portable or temporary facilities. He then explained the square foot ramifications of this language. Senator Wilken asked if this section would change the global definition of "unhoused" students in Alaska. Mr. Jeans responded that he would do additional research to answer this question. Ms. Ossiander confirmed that students in portable facilities in Anchorage have been considered "unhoused." Senator Phillips advised that the Anchorage School District, along the Department of Education and Early Development will work with demographers in order to further refine this fiscal note. He then gave examples of overcrowding and growth of community sectors, both of which reflect a need for this legislation. Mr. Jeans clarified that the numbers outlined in the fiscal note reflected the additional amount of money allowed for eligible reimbursement. He continued that the level of reimbursement would depend on the funding mechanism that the legislature passes. He added that this legislation would change entitlement for school districts, affecting the related project priority process. NANCY DAVIS, Eagle River PTA (Parent Teacher Association) spoke to the fiscal note and noted that this district's highest priority was to secure funding for a second high school in North Anchorage. She noted that the district currently has nine portable facilities at this high school. Co-Chair Torgerson ordered the bill HELD in committee.