10:12:35 AM CS FOR HOUSE BILL NO. 1(HES) "An Act relating to the base student allocation used in the formula for state funding of public education; and providing for an effective date." This was the second hearing for this bill in the Senate Finance Committee. Co-Chair Wilken moved for adoption of SCS CS HB 1, 24-LS0001\S as a working document. Senator Hoffman objected for an explanation of the changes. Co-Chair Wilken explained that the total effect of the committee substitute adds $70 million to the education foundation funding formula. This amount is divided into $32 million for the classroom and $38 million for Public Employees Retirement System (PERS) and Teachers Retirement System (TRS) expenses. The $32 million is contingent on the passage of HB 1. The $38 million provision is contingent upon passage of a retirement reform bill, perhaps in the form of SB 141. Co-Chair Wilken calculated passage of this legislation would result in a funding increase of $343 per student. Co-Chair Green remarked on the need to reform the PERS and TRS, which is a priority. This is part of the effort to assist school districts, boroughs, etc. in funding education. Senator Hoffman asked the consequences for this legislation if SB 141 does not pass. Senator Hoffman pointed out that the fiscal note amount is different that that stated by Co-Chair Wilken. The fiscal note indicates the total funding per student would be $4,733 rather than $4,919. 10:15:00 AM Co-Chair Wilken clarified that the increase of $32 million would increase the per student allocation by $157 totaling $4,733. If PERS and TRS reform is passed the per student allocation would be increased an additional $186 to be $4,919. The total of the committee substitute is the same as the bill passed by the House of Representatives. Senator Hoffman removed his objection and the committee substitute was ADOPTED as a working document. Co-Chair Wilken offered a motion to report SCS CS HB 1, 24-LS0001\S from Committee with individual recommendations and a new fiscal note. There was no objection and SCS CS HB 1 (FIN) MOVED from Committee with a fiscal note prepared by the Senate Finance Committee dated 3/16/05 for the Department of Education and Early Development in the amount of $32,018,600. ADJOURNMENT  Co-Chair Green adjourned the meeting at 10:16 AM