SENATE BILL NO. 198 "An Act increasing the base student allocation component of the public school funding formula; and providing for an effective date." Senator Wilken as sponsor gave an overview of this legislation. He noted that this bill simply provided that an additional fifty dollars be added to the student dollar for K-12 foundation formula. He pointed out that the foundation formula puts a demand on state resources in the amount of $19.96 million dollars less than the year before. He noted that this legislation recognizes that part of this money, if not all of it, is education. He continued that this $19.96 million is generated by three things: the first, Alaska has fewer students, federal monies have increased since last year, and through the efforts in the last decade of this legislature and others, the assessed value of Alaska continues to grow. He summarized that these three aspects contributed to a $20 million dollar reduction to the state's resources. He felt as though the increase in funding outlined in SB 198 would provide relief to various communities. MALCOLM FLEMING, Principal Seward High School testified via teleconference from Seward. He pointed out how this district is slated to loose three regular teachers and one special education teacher due to falling enrollments, along with the effects of budget cuts. He added that if they had been able to use the funding formula from 1996 - 1997, the district would presently have four more teachers on staff. He outlined the additional effects budget cuts would have on the Seward school district. ROYCE CHAPMAN, Fairbanks School Board testified via teleconference from Fairbanks. He noted that the Fairbanks district is faced with a $4 million-dollar gap in funding. He declared that the district made up $3 million of this deficit through cuts to administrative areas, which did not have a direct affect on student programs. He gave an overview of other such efforts, including shortfalls anticipated in the future. CYNTHIA HENRY, President, Fairbanks School Board testified via teleconference from Fairbanks. She stated that the board recently held two public hearings and heard from 80 citizens regarding the Fairbanks school budget. She noted that every participant requested the reinstatement of those programs already cut because of budget shortages. She explained that the district would eventually ease subsidies to their charter school contingents. She spoke to loosing children from the district due to program cuts. Tape: SFC - 00 #46, Side A, 10:36 AM CARTER CRAWFORD, testified via teleconference from Fairbanks. She stated her support for SB 198 and education generally as a high priority. She added that education should not be considered an expense just because it is a budget item. She countered that drops in enrollment should be an opportunity for districts to increase Alaska's commitment to existing students. PATRICK HICKEY testified via teleconference from Kenai. He noted that Kenai's property taxes have increased to the point where the state should realize a reduction of revenue at $781,000 next year. He stated his support for this legislation. Catherine DeLacee, President, Soldotna Elementary Sight Council, testified via teleconference from Kenai. She stated that the Council unanimously supports this legislation. She stated that the local school there had to "pink slip" four teachers recently and she noted that teachers have had to pay for supplies out of their pockets for the last three years. SCOT WHEAT testified via teleconference from Homer and voiced his support for this legislation. RICK HARNESS testified via teleconference from Homer. He stated his support of the previous testimony. DEBBIE COOK testified via teleconference from Fairbanks. She stated wholeheartedly her support for this legislation in face of budget shortfalls. She felt as though education of Alaskan children should be its highest priority. CARL ROSE, Executive Director, Association of Alaska School Boards stated that the state has been on the move to improve the quality of education in Alaska. He noted that the intent of previous legislation namely, SB 36 was to inject $26 million into the education system. He asserted that this legislation was to offset enrollment declines and increased property values as a local contribution to education. He stated that his organization supports this legislation because the weight of money generated by it will go towards the children directly. VERNON MARSHALL, Executive Director, NEA (National Education Association) Alaska stated that his organization supports the $50 increase as allowed for by this legislation. He added that the NEA would gladly support an amendment to raise the basic student allocation to $4,040 in an effort to restore the $19.17 million as recommended by the governor. He noted that this money would go a long way to preparing students for the 2002 exit exams. He also stated a concern with the quality schools initiative as presented in SB 244. He pointed out that this effort would require additional personnel, materials and training. He outlined the specific related cost ramifications of this initiative as well.