SENATE BILL NO. 289 "An Act extending the termination date of the special education service agency; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken stated this bill, sponsored by Co-Chair Green, "extends the termination date of the Special Education Service Agency (SESA) until June of 2013, an additional nine years." JACQUELINE TUPOU, staff to Co-Chair Green, testified as follows. The Alaska Legislature had established the Special Education Service Agency in '86. And the purpose of it was to help schools and infant learning programs that had children with severe disabilities where they had no local expertise to provide that for them. They make it possible for those districts that either a low or remote attendance or, for instance if you were in a school district that had one blind child, or one disabled child. It enables those students to receive those services in their community. Those students would otherwise have to leave their families and communities and go into costly residential treatment programs, which would be at a huge cost to the State. So as intended by the Legislature, they deliver student-specific services specifically to small school districts, but they have lots of programs that are available statewide, such as workshops, courses, library, newsletter, and a website, that all schools have available to them. We recognize at this time that the availability of the personnel that have specialization in student disabilities has really decreased. At the same time, the incidences of students that have these severe disabilities has really increased, causing a lot of problems in different states. We have this bill before you that will extend the SESA education service agency for another nine years until June 30, 2013. CHRIS ROBINSON, Executive Director, Special Education Service Agency, testified that he was available to respond to questions. PAT DAVIDSON, Director, Division of Legislative Audit testified to the report published December 18, 2003 auditing the Agency [copy on file]. She relayed that during the course of conducting this audit the Division found that almost all school districts gave statements in support of SESA operations and the continuation of the Agency, as well as requests for increased funding of the Agency. She stated that based on the findings of the audit, the Division issued a recommendation to extend the termination date for four years to the year 2008. Ms. Davidson spoke to recommendations included in the report, mostly to address efficiency issues; primarily a recommendation to expand the use of teleconferencing "between the SESA expertise and the school districts". She noted this would result not only in cost savings, but would also provide more services to school districts, a request expressed by the districts. She suggested that through the utilization of teleconferencing services, the Agency would have increased contact with school districts. She predicted that over the next four to six years, the Agency would substantially change its delivery of services, which could be assessed at the time the recommended four-year extension neared completion. Ms. Davidson characterized efficiency issues identified in the audit as "minor", including a recommendation that managers pursue the availability of the "e-government discount" for telecommunications expenses. She said the report also encourages SESA to stress its status as a State agency rather than a not-for- profit organization in securing lower prices with vendors as well as in filing paperwork with the federal Internal Revenue Service. Ms. Davidson said the Audit found that representatives of the Department of Education and Early Development and the Governor's Council on Disabilities and Special Education were not attending SESA meetings. She stressed this is a crucial element of State oversight of SESAs operations. Senator Olson asked what specific changes were necessary to measure the delivery of services. Ms. Davidson replied that pilot programs must be implemented to start delivering those services. She explained that specialists were helping onsite instructors and teachers. Senator Olson asked if the current activities are ineffective. Ms. Davidson corrected they are very effective; however the audit suggests that the contact could be increased. She noted the availability of video conferencing equipment currently used for telemedicine. Senator Olson noted the legislation provides a nine-year extension and asked the consequences of the longer extension. Ms. Davidson gave two reasons for a shorter extension. She admitted that the existence of a federally mandated program is an argument for a longer extension, although a four-year extension allows the legislature to review SESA operations. She qualified that the longer extension could be granted and the legislature could request periodic audits in addition to the automatic audits conducted when an entity reaches completion of its current term. She stated, however, that statutory changes to programs are usually offered in conjunction with extensions under the theory that legislation would pass easier to avoid sun-setting the entity. Co-Chair Green noted she was troubled by the amount of time taken and required of SESA to receive extensions. She remarked that a nine-year extension would provide the organization stability in the knowledge that it would continue. Co-Chair Wilken asked if other entities have been given nine-year extensions. Ms. Davidson responded that the previous extension of SESA was ten years. Co-Chair Wilken shared that he was intrigued by Commissioner Sampson's assertion that SESA was unable to conclude that video conferencing would become "the norm" at this time, given the over 80 sites with this capacity. Ms. Davidson relayed that it would require a substantial change in the method in which SESA delivers services. She furthered that without "history" in the process, the Commissioner was unwilling to "recognize that as the new norm for service delivery without more experience." DUANE GUILEY, Finance Officer, Special Education Service Agency, testified via teleconference from Anchorage that he was available to answer questions. Mr. Robinson expressed that an extension of only four years would have a negative impact on recruitment of staff. He told of the several specialists vacancies, with up to six more anticipated, based on the average tenure of 9.8 years. He detailed his 20 years in this field and 14 years recruiting specialists for SERA. He informed of the national shortage of qualified specialists, cautioning, "it is not a seller's market". He remarked on the difficulty in convincing specialists to relocate to Alaska without certainty that the program would continue. He indicated that if the agency were understaffed, financial consequences would occur. Mr. Robinson also pointed out that other recommendations contained in the audit appear to be long term and in conflict with a short- term sunset date on the Agency. Co-Chair Wilken asked the witness to address the reluctance to commit to a videoconference process. Mr. Robinson responded that only a minority of schools in the State has videoconference capability. He speculated that focus on utilizing these could result in an uneven distribution of services. He also reminded that many efforts to implement a videoconferencing system have been unsuccessful and stressed that SESAs capacity to utilize the systems relies on "end user capacity". He was uncertain whether schools in some villages could comply. He qualified, however, that the Board of SESA has indicated intent to utilize teleconferencing systems, especially for training purposes. He was skeptical that videoconferencing could ever replace all onsite visits. He explained the need for the specialists to understand not only the student, but also the environment surrounding the student. Mr. Robinson spoke to the benefits of allowing students to remain in their homes and attend their local schools, rather than be moved, as is done in other states. Co-Chair Wilken pointed out that the first videoconferencing systems were installed ten years prior, and agreed that many were disappointed in its performance. However, he noted that the original technology did not involve fiber optic cables, as are currently available and significantly improved performance. Co-Chair Wilken noted a spreadsheet titled, "SESA Outreach Methods by School District" [copy on file] that listed each school district and asked if any of the sites have been identified for videoconferencing programs. Mr. Robinson answered yes and referenced a spreadsheet titled, "Student-Specific Consultations Caseload Count, FY 2004 2nd Quarter" [copy on file]. He told of a competitive grant awarded to SESA to develop an Alaska Autism Resource Center. He stressed that this contract was "highly technology intensive" and specifically proposed the use of videoconferencing to maximize an "under-funded contract given the State need for information and assistance in autism." He told of contracts with General Communications Incorporated (GCI) to implement videoconferencing services in the Bering Strait, Chugiak, Lower Kuskokwim, Lower Yukon, Northwest Arctic, and Southwest Region school districts. Co-Chair Wilken knew of a demand for autism spectrum disorders services in Fairbanks, although no services were available. He expressed intent to discuss the matter further at a later date. Mr. Robinson informed that the Center is a resource to Fairbanks and other communities. He told of the high attendance at a recent two-day course and seven conferences. Co-Chair Wilken asked whether the Legislature should mandate attendance of Department of Education and Early Development and Governor's Council on Disabilities and Special Education representatives at SESA board meetings. Mr. Robinson detailed the collaboration and working relationship between SESA, the Department and the Council. He attributed the lack of attendance to the multiple competing responsibilities and high turnover rates of the particular staff. He surmised that because SESA functions successfully, it is not a "problem area" and therefore not of concern for the Department or the Council. Co-Chair Wilken again asked whether attendance should be mandatory. Mr. Robinson responded it should not, noting that "the point has been made" and that both agencies were represented at the SESA meeting held in February. He predicted the board would become more assertive in its response to any future nonattendance. Co-Chair Green offered a motion to report the bill from Committee with individual recommendations and accompanying fiscal note. There was no objection and SB 289 MOVED from Committee with zero fiscal note #1 from the Department of Education and Early Development.