CS FOR HOUSE BILL NO. 273(FIN) "An Act relating to school funding, funding for student transportation services, the base student allocation, district cost factors, and the adjustments for intensive services and average daily membership calculations; and providing for an effective date." Representative Hawker explained that CSHB 273(FIN) is the result of a work product from the Joint Legislative Education Funding Task Force (JLTF). He thanked all those who worked on and with the JLTF and noted the collaborative efforts from all parties involved. The provision is identical to the companion legislation, SB 178. He explained that the questions raised in Committee regarding the pupil transportation recalibration had been addressed in CSHB 273. The question regarding the recalibration of the pupil transportation for Matsu has been resolved to the satisfaction of Senator Huggins. The components of the bill include: a declining enrollment cushion, an increase in funding for intensive needs students, the phase in of the Institute of Social & Economic Research (ISER) cost factors, and an adjustment of the Base Student Allocation (BSA) with an increase of $100 a year for the next 3 years. He underlined that this provides for a 3 year stable platform from which schools have predictable funding. He noted the final fiscal note from House Finance recognizes FY 09 funding but includes the forward funding for FY 10. 9:15:18 AM Co-Chair Hoffman asked Representative Hawker about a combined fiscal note from the CS regarding all district impacts. Representative Hawker said the pupil transportation recalibration is reflected in fiscal note three. EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, responded to the fiscal note question. He confirmed that fiscal note three reflects the recalibration for student transportation. He explained the two fiscal notes represent two different components in Department of Education and Early Development (DEED) budget. Co-Chair Hoffman requested the total increase in funds for education over the next five years, including pupil transportation. Mr. Jeans said the increase in the foundation program for a five year period totals slightly over $2.5 million. The increase for the pupil transportation would be $10 million. 9:18:52 AM Co-Chair Hoffman quoted the total costs at $260 million for the full implementation of the provision. Mr. Jeans said the calculation was correct, but pointed out that school districts currently receive $70 million in a one time funding for FY 08. The $70 million is not included in the fiscal note as an offset. Representative Hawker said the provision is one leg of a three legged stool. Other parts of the "stool" include some form of community revenue sharing which would represent a significant amount of cost sharing related to the unfunded pension liabilities. CARL ROSE, ASSOCIATION OF ALASKA SCHOOL BOARDS (AASB), testified in support of HB 273. He said AASB supports an increase of the BSA to $200. He cited his history in the education field and the numerous changes to the foundation formula and the discussions on forward funding of education. He reiterated the request for the increase to the BSA to $200. He acknowledged the monumental accomplishments and significant increase of funds outlined in HB 273. Co-Chair Hoffman commented that the BSA is not stagnant, this year there is a $100 increase and there will be additional increases for 2010 and for 2011, totaling $46.6 million. He maintained that the increase is a substantial move forward. 9:25:21 AM MARY FRANCIS, EXECUTIVE DIRECTOR, ALASKA COUNCIL OF SCHOOL ADMINISTRATORS, (ACSA) testified in support of HB 273. She said that the work of the JLTF was a great effort. She pointed out that ACSA had a resolution that request forwarded funding of education for three years. She said her organization is pleased the provision will be in statute. ANN GIFFORD, JUNEAU, testified in support of HB 273. She is a parent of three students that have been through the Alaska school system. She pointed out how school districts have been flat funded for some time. She supported the Governor's proposal of a $200 increase to the BSA. She maintained that there is a surplus of oil revenues and education is the appropriate place to invest those funds. MARY HAKALA, GREAT ALASKA SCHOOLS, JUNEAU, testified in support of HB 273. She explained that her organization is made up of volunteers that provide time and energy to schools. She thanked those involved with the JLTF and emphasized the hard work in addressing the needs of education. She urged the committee to increase the BSA to $200. She maintained that with funding at that level, the money will reach the classroom. 9:33:08 AM JOHN ALCANTRA, GOVERNMENT RELATIONS, NEA-ALASKA, testified in support of HB 273. He thanked those who served on the JLFT. He noted the difficulty of expressing sincere appreciation for the work done and making additional requests. NEA does support the Governor's proposed $200 increase to the BSA. He reiterated Mr. Jeans's comments; the $70 million are duplicative funds from FY 08, not new money. He referenced the Southwest region in the fiscal note quoting the $934,000 that is duplicative funds from FY 08. The increase in funds is actually $340,000. The efforts and the bill are considered a great product. He referenced other funding amounts to provide an example of actual increases versus duplicative funds. He underlined the support of NEA and that the organization recognizes the accomplishment and collaborative efforts in producing the legislation. He said that many employees he represents question, with the surplus oil and gas revenue, why the BSA is not increased. 9:37:26 AM LADAWN DRUCE, PRESIDENT, KENAI PENINSULA EDUCATION ASSOCIATION, SOLDOTNA (Testified via teleconference), testified in support of HB 273. She thanked the JLTF for their hard work. She supported the positive results of their efforts specifically the pupil transportation adjustment, the increase in funds for intensive needs students, and the decline in enrollment cushion. She further commented on the importance of placing the recommendations regarding area cost differential, from the ISER study, into statute. She said the report illustrates how much the Kenai School District has been underfunded. Additionally, the Kenai School District had to adjust its budget back to accommodate the $100 BSA rather than the Governor's proposed $200 a day. She listed specific areas the district would like to improve on through additional programs. She reiterated comments from previous speakers regarding surplus oil revenue and recommended the fund be put towards education funding. DAVE JONES, ASSISTANT SUPERINTENDENT, KENAI PENININSULA SCHOOL DISTRICT, SOLDOTNA/KENAI (Testified via teleconference), in support of HB 273. He thanked the Committee and the JLFT for their hard work in addressing the needs of education. He commented on the importance of several of the recommendations from JLFT in the provision: · He said intensive needs funding represents new money. He maintained that districts have been underfunded for some time. · He supported the placing of the District Cost factor recommendations from ISER, in statute. · He supported the Pupil Transportation Calculation recalibration noting that Kenai has been losing money through transportation costs. · He said the BSA amount of $100 is approximately the amount received through school improvement grants and was glad to see this in statute. He was appreciative of all efforts.   9:45:37 AM Co-Chair Hoffman MOVED CSHB 273(FIN) to REPORT out of Committee with individual recommendations and the accompanying fiscal notes. CSHB 273(FIN) was REPORTED out of Committee with a "do pass" recommendation and with fiscal note #1 by the Department of Education and Early Development, fiscal note #3 by the Department of Education and Early Development, fiscal note #4 by the House Finance Committee, and a new zero fiscal note by the Department of Health and Social Services.