CS FOR HOUSE BILL NO. 165(HES)(efd fld) "An Act relating to community schools." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken explained this bill, sponsored by the House Rules Committee at the request of the Governor, "eliminates the community schools grant program. The $500,000 for this program has been deleted in both the House and Senate operating budgets. In addition, HB 165 places in the uncodified law, a findings and intent section regarding community schools." KEVIN SWEENEY, Special Assistant, Office of the Commissioner, Department of Education and Early Development testified that this bill addresses the statutes relating to the community schools grant program. This grant program, he stated, began in 1975 and its purpose was to provide financial support to encourage and assist local school districts in the establishment of community schools. He emphasized the intent was to provide start-up funds. He expressed that the grant program has been "extremely successful" and that to date, the State has granted over $30 million to local school districts to assist in establishing community schools. Today, he noted 53 school districts operate community schools and added that the funds appropriated for community schools have helped the districts "grow their entire community education programs" to include activities such as "before and after child care" remedial programs for students and adult education. Mr. Sweeney stressed that the Administration is "by no means suggesting that we want to close and end the community schools program." He expressed the program provides "a very good service to students and adults alike," which should continue. However, he remarked that the Administration is reducing State spending and this program was identified as "a very reasonable cut" because start-up funds have been provided for 28 years. Mr. Sweeney informed that if fully funded, the program would cost the State approximately $3.3 million annually, although the program has not been fully funded since the middle 1980s and instead has been appropriated between $400,000 and $800,000. Currently, he furthered, the program is not funded at all and the Administration does not anticipate funding available for the coming years. Therefore, he remarked this legislation removes the grant program from statute. Mr. Sweeney assured this bill does not prevent local school districts from operating community schools. He asserted that the grant funds comprise a small percentage of the funds raised by local school districts for community schools activities. He spoke to the $2 million community services component of the Anchorage School District budget, of which the State provides $150,000. By removing the State's portion, he predicted the local districts could offset shortfalls with increased user fees, "help from the community", or other grants. Senator Taylor offered a motion to report the bill from Committee with individual recommendations and accompanying fiscal note. Senator Taylor then objected to the motion for purposes of further discussion. Senator Bunde supported the continuance of the community schools programs and asked the average tuition increase necessary to offset the loss of State funding. Mr. Sweeney responded that the amount would vary by community. He exampled Anchorage and the approximately 55,000 annual participants in community schools activities and the current revenue of $65,000 to $70,000 generated from user fees that is deposited into the school district's general fund. He predicted if those funds were invested into the community schools program and user fees were increased "a little over a dollar" the $150,000 formally appropriated by the State would be offset. Senator Olson expressed that in rural communities, schools tend to be the largest facility and subsequently the location for funerals and other community activities. He asked if education funds could be used to pay utilities expenses for these functions. Mr. Sweeney was unsure if community schools funds are currently used for these purposes, and pointed out the average appropriation for smaller schools is $4,000. He pointed out this amount is less than the amount a school district must absorb as a result of decreased enrollment. He stated that foundation formula funds are normally used for utility expenses, building maintenance, etc., and he surmised are therefore contributing significantly to the community schools expenses. EDDY JEANS, School Finance Manager, School Finance and Facilities Section, Education Support Services, Department of Education and Early Development spoke a spreadsheet titled, "Alaska Department of Education and Early Development, FY 02 Community schools expenditures and grants, Prepared 3/12/03, Updated 4/28/03" [copy on file]. This spreadsheet lists each school district and its community schools expenditures, the State allocation to each district, and the percentage of grant to expenditures for each district. He also referenced an audit report of the Anchorage School District FY 02 budget [copy on file], which provides a definition of "Community Services" as follows. COMMUNITY SERVICES - Activities provided by a school or school district for purposes of relating to the community as a whole or some segment of the community not directly related to providing education for students. Specifically, it is an additional responsibility delegated to the school district beyond its primary function of providing education. Included are community recreation programs, civic activities, public libraries, public radio programs, community welfare activities and care of children in residential day schools. Examples of the types of expenditures to include are salaries, employee benefits, travel, and supplies. Mr. Jeans pointed out that AS 14.17.300(b) relating to foundation formula funding, provides that funds in the public school account "may be used only in aid of public schools including community schools activities." He assured therefore that statute continues to "support" community schools programs. Senator Taylor withdrew his objection to the motion to report the bill from Committee. JOYCE KITKA, Volunteer, Alaska Association for Community Education, read a statement into the record as follows. …I am a volunteer with the Alaska Association for Community Education, a volunteer organization that promotes Community Education through out Alaska. Our membership consists of those individuals who support life long learning. Thank you for the opportunity to testify today about House Bill 165. I know that each and every one of you have heard from folks concerning this bill. Due to the change in schedule, I know we have lost community members who wanted to testify before you and ask you not to support HB 165. We realize that times are tough and funding may not be available at this time. However passing this bill will eliminate the possibility of funding Community Education in the future. In front of you, you have a sheet, which outlines the history of funding for community schools, the numbers of folks we serve and the astounding number of volunteers that we recruit, train and supervise. Today's testimony is to ask why there really is a need to eliminate the statute that says Community Schools is in existence in Alaska today. Through this process, we have only heard DEED argue that the intent of the Community Schools Statute was to only [facilitate the] start of the program and [that] all Community Schools does is provide open gyms, although more recently we have been upgraded to providing underwater basket weaving classes. We have counter[ed] those statements with attorney opinions that differ with the interpretation of the statute, provided folks with stacks of programs, flyers, etc. that indicate that we do much more than the previous mentioned programs. We have been told that there are corporate sponsors out there that can fund our programs, while other legislators swear and laugh at these comments (by that way that has been the response from both parties). We have been told that we need to raise our fees, yet we have not had full funding 17 years and are always asked to do more so we have already raised fees, been creative in establishing partnerships throughout the State and have exhausted a lot of our choices. We often serve the poor, single parent families and raising fees will eliminate those folks from our program. We have been told that schools will pick up these programs. We chuckle, as we know our districts are facing tremendous cost and little money to fund them. I know my district is starting to have problems in finding the resources to handle the wear and tear on our facilities by community usage. Our participants and staff are upset, and I apologize if you have been the recipient of their frustration. Over the past years, Community Educators have approached the Commissioner of Education and asked how Community Education could be a part of the team, they have had no response. Community Schools programs across the State have never been asked about their programs, only to have assumptions presented to the legislature. The task of reporting about how your money is being spent was deemed no needed by DEED. So the Alaska Association for Community Educations has utilized its volunteers to compile and provide you with participant numbers and programs. They feel that they have been fiscally responsible and are being punished for their efforts. That last thing I want to touch on is that of respect. As citizens of Alaska, we recognize and respect your efforts and why we may not always agree [with] your decisions we respect them. Unfortunately, many of our participants and staff feel that the respect has not been shown to them. DEED and the Governor have not thoroughly looked at the program they proposed eliminating, thus insulating the years of hard work and successful programs. We feel that it has been a game with DEED staff. Last Friday evening, as I exited the House Floor observing area, I witnessed a DEED person high-fiving another person and exclaiming the victory as HB 165 cleared the House Floor. It [became] apparent to me it isn't about what is good for kids, isn't about what is best for Alaska, it's a game about who can win. However, I can tell you, assure you, there are no winners as programs will be [lost], students and adults will suffer and buildings will go unused. You have already made the choice not to fund Community Schools. If you think the legislation is bad then let's spend the next year working on making it better, eliminating the program as outlined by HB 165 does nothing to making Alaska a better place to live or to utilize an incredible amount of resources available in Community Schools programs. Ms. Kitka spoke to the accounting of community services revenues in the Anchorage School Districts and warned that if State funding were not provided, programs would be eliminated. She disagreed that increasing user fees would offset the costs, pointing out that rural residents would be affected disproportionately. Senator Bunde agreed that community schools programs have the support of many people. He asserted that increased user fees, would secure more funding for community schools than a general tax administered by the State and distributed to each school district. Ms. Kitka stressed the issue is the proposal to eliminate the grant program from statute, regardless of whether funding is provided. She stated that if funds became available in the future, statute should allow for appropriation to the grant program. Senator Bunde noted appropriations to other programs have been suspended, although the programs have not been eliminated. He advocated "continuing in that mode" with respect to the community schools grant program. Co-Chair Wilken applauded the efforts of the witness on behalf of community schools and noted the bill reflects these efforts in the finding and intent language on page 1, lines 5 - 12, which reads as follows. FINDINGS AND INTENT. (a) The legislature finds that community schools (1) are an expression of the philosophy that the school, as the prime educational institution of the community, is the most responsive when it involves the people of that community in a program designed to fulfill their educational needs; and (2) promote the use of school facilities through the use of buildings and equipment beyond the normal school day. (b) It is the intent of this Act to encourage local school districts to maintain community schools. JULIE WILD-CURRY, Alaska Association for Community Education, testified via teleconference from Fairbanks, to encourage the Committee to not eliminate the enabling statutes for the community schools grant program. She stressed the laws supporting the community schools program must remain. She qualified that the community schools program in Anchorage is "strong", but pointed out this is only one of 53 school districts funded through the grant program. She furthered that over the past several years, school districts have been the recipients of "twenty-first century grant programs" that have generated $25 million to the State; however, the schools are currently only receiving $1.75 million. She cautioned that twenty-first century grants are contingent upon active community school programs and emphasized the subsequent importance that the State demonstrates support for the existence of these programs. ROGER SHANNON testified via teleconference from Kenai, in support of the general accomplishments of the Legislative session. SFC 03 # 99, Side B 09:33 AM Mr. Shannon continued by requesting the Committee not discontinue the existence of the community schools program, based on 18 years of "street level" experience. He warned that reductions to community school programs would increase social problems "on the streets" and would require additional public safety efforts and expenditures. Senator Bunde voiced objection to reporting this bill from Committee. He suggested the grant program should remain, although funding not appropriated. Co-Chair Wilken ordered the bill HELD in Committee. [The motion to report the bill from Committee was subsequently TABLED.]