SENATE CS FOR HOUSE BILL NO. 239(HES) "An Act establishing a pilot program for a regional learning center." This was the second hearing for this bill in the Senate Finance Committee. DR. LARRY LABOLLE, Staff to Representative Richard Foster, testified to a letter to the Committee dated May 10, 2002 co-signed by Dr. John A. Davis, Superintendent, Bering Strait School District and Dr. Stan Lujan, Superintendent, Nome City Schools [copy on file] which identifies various project funding sources such as training grants through Kawerak, Inc, a consortium of regional social services agencies. He noted that this letter does not provide a financial plan although other letters supporting this project have been received; including one from the City of Nome [copy not provided] that assures the City's support of the project and specifies that Kawerak, Inc. would commit up to $2,300,000 in State and federal training money to the project, and another letter addressed to the superintendents of the Bering Strait School District and Nome City Schools District from Kawerak, Inc. [copy not provided] that specifies that $2,300,000 in grant funding is available to support this program. He continued that the Norton Sound Development Corporation has additionally supplied a letter [copy not provided] citing their support of the program. Dr. LaBolle stressed the importance for project planning; however, he pointed out "nobody is able to put together a financial plan until they have some idea of what the program looks like." He continued that in order to "shape the program," it would be necessary for the Bering Straits School and Nome School Districts to work with other "major players," such as the Northwest Campus and Kawerak, Inc. "to meet and develop a consensus" as to how the program would operate. Senator Wilken attested that a business plan has been requested numerous times, and the fact that none of the recent correspondence addressed the issue "shocked" him. He reviewed the known elements of the project including the utilization of an existing building for which operational costs are available, and the identification of the number of students and corresponding staffing requirements. He surmised that the affected school districts' superintendents each manage large school district budgets and should be able to develop a business plan for this project. He stated that in return for the State, acting as "the project banker" by providing funding for the project, the districts should be able to provide a project business plan. He voiced two suggestions: one; "stop this bill right here" until a business plan is presented; or two; "zero out the fiscal note" which would allow the project to begin and develop a funding needs plan as it progresses. Senator Wilken opined that this bill should not be considered until a viable business plan is presented. JOHN HANDELAND, Employee, and former Mayor, City of Nome, informed the Committee that the City of Nome has been exploring methods to utilize the existing Nome Beltz School complex and to provide an innovation educational experience for both rural and urban students in the City of Nome and the Bering Straits School Districts. He stated that this project is the result of that endeavor. He informed the Committee that the City of Nome has approached Alaska US Senator Ted Stevens, who asked the City to identify local support for the project. Mr. Handeland confirmed that the City of Nome, Kawarek, Inc, and the Bering Straits and Nome School Districts are committed to supporting this project. He further expressed that the City of Nome has responsibly and continually demonstrated its support of education, and that there is widespread support in the region to support this bill as presented. Mr. Handeland avowed that the approval of the accompanying $150,000 Department Education and Early Development fiscal note would provide the project with the required State support necessary to further the opportunity to receive federal and other funding support. Senator Green asked why the two school districts could not provide the required support for this project, without the need for this legislation. Dr. LaBolle explained that US Senator Stevens has specifically requested a demonstration of support for this project from the State. He continued that as the concept of the project expanded, the Department of Education and Early Development became involved in the process of coordinating the two affected school districts. Senator Green questioned whether a letter of recommendation from the Department of Education and Early Development would be sufficient to demonstrate the State's support. She voiced that this appears to be a request for money, and that every school district would like to have a comparable amount of money to further the development of innovation teaching programs. She stated that she is very concerned about the long-term impact of this legislation. Senator Wilken asked the testifier whether a five-year business plan could be developed. Mr. Handeland responded that a business plan should be and could be developed, and he mentioned that US Senator Stevens has also requested a business plan to be developed by the two school districts. He contended that perhaps a business plan should have been established first; however, the emphasis was placed on cementing the necessary support and cooperation for the project from the various regional entities. Mr. Handeland responded to Senator Green's comment about providing innovative education funding to all districts, by qualifying that the City of Nome School District, unlike other State school districts, has an existing, but unused, teaching facility that would provide the required infrastructure for this project. Senator Olson reiterated that having an existing facility does make this project unique. Senator Olson offered a motion to move from Committee, "House Bill 239 with individual recommendations and accompanying fiscal note." Senator Wilken objected and asked that consideration be given to zero out the accompanying fiscal note. Vice Chair Ward inquired whether Senator Wilken would offer an amendment to that effect. Senator Wilken stated that if the fiscal note were zeroed out he could support the legislation; however, he did not offer a formal amendment. A roll call was taken on the motion to report the bill from Committee. IN FAVOR: Senator Hoffman, Senator Olson, Senator Ward, Senator Austerman OPPOSED: Senator Green, Senator Wilken ABSENT: Co-Chair Donley, Co-Chair Kelly, Senator Leman The motion PASSED(4-2-3) SCS CS HB 239(HES) was REPORTED from Committee with a previous $150,000 fiscal note, dated April 16, 2002 from the Department of Education and Early Development. RECESSED TO THE CALL OF THE CHAIR 8:40 PM / 9:11 PM