SENATE BILL NO. 174 "An Act relating to education funding; and providing for an effective date." Co-Chair Kelly requested a reconsideration motion be taken on SB 174 so that the Committee could consider a technical amendment. Senator Wilken moved to rescind action taken on moving SB 174 out of Committee. Co-Chair Kelly noted that the version of the bill before the Committee was version "C". There being no objection, action was RESCINDED. Senator Wilken moved to adopt Amendment #6. [Copy on File]. He stated that the amendment would clarify the intent of the change in the local requirement for organized Alaska. The affect of the amendment would pass on half of the amount, in order that the taxpayer and the general fund would each carry half the funding load. He pointed out that on Page 2, Line 30, the word "annual" would be inserted, which would clarify that it would affect the prior year and would be an annual calculation. Also, it would establish a local assessed value calculation. Senator Hoffman objected for the purpose of discussion. He asked if there had been a comparison for the 1999 date. Senator Wilken noted that he did not have that information. He believed that would be included in the fiscal note received from the Department. He added that the 1999 were the figures which had been used. Co-Chair Kelly asked if the objection was maintained. There being no further objection, Amendment #6 was ADOPTED. Senator Olson moved to rescind action taken on failure to adopt Amendment #4 which would delete Section #1. [Copy on File]. He advised that none of the school districts in his area or rural Alaska were in support of the bill. Co-Chair Kelly objected. He argued that the bill would provide more money to his district and also the North Slope Borough District. CARL ROSE, Executive Director, Association of the Alaska School Boards, Juneau, voiced concern with passage of the bill because of issues with fairness and district redistribution. Mr. Rose commented that the Association is concerned about the future of education in the State of Alaska. He asked what will happen to children moving forward and their success with the high school qualifying exams. He requested that members take a long-term view and create a real fiscal plan. Mr. Rose stressed that SB 174 was a "regressive" approach in addressing the future. The issue of adequacy is not being addressed. He added that the Association is in favor of an increase in the foundation formula and redistributing money in an adjusted method. He claimed that there should not be any changes made to SB 36 until there is further and more appropriate information available. He voiced strong objection to the proposed legislation. AT EASE 10:19 AM/10:21 AM A roll call was taken on the motion to rescind action taken on Amendment #4. IN FAVOR: Austerman, Hoffman, Olson OPPOSED: Wilken, Green, Leman, Donley, Kelly Senator Ward was not present for the vote. The MOTION FAILED (3-5). Senator Wilken moved to report the amended CS SB 174 (FIN) out of Committee with individual recommendations and the accompanying fiscal notes. Senator Hoffman asked if the title would change. Co-Chair Kelly replied it would not. Senator Olson objected to moving the bill from Committee. He explained that the bill will have a dramatic affect on the North Slope Borough. FREIDA ARNHEIGHT, Superintendent, North Slope Borough School District, stated that SB 174 would be devastating to the North Slope Borough School District. It will remove State funding which amounts to $9 million dollars. Taking away the State funding also removes the effort to have grants, which accounts to a little over $10 million dollars. She urged reconsideration of the implementation of the legislation. Senator Olson maintained his objection. A roll call was taken on the motion to move the bill. IN FAVOR: Green, Leman, Wilken, Donley, Kelly OPPOSED: Austerman, Hoffman, Olson Senator Ward was not present for the vote. The motion PASSED (5-3). CS SB 174 (FIN) MOVED from Committee with "individual recommendations" and with a new fiscal note by the Department of Education & Early Development.