SENATE BILL NO. 152 "An Act relating to charter school funding." Co-Chair Hoffman MOVED to ADOPT a new CS for SB 152, labeled 25-LS0754\K, Mischel, 3/17/08. Co-Chair Stedman OBJECTED for discussion purposes. DARWIN PETERSON, STAFF, CO-CHAIR STEDMAN explained the changes in the new CS. If the average daily membership (ADM) in a charter school is less than 150, the adjusted student count will be calculated by multiplying the ADM by 1.08 instead of by 1.27 as in the original bill. 9:11:07 AM Co-Chair Stedman WITHDREW his OBJECTION. Senator Dyson OBJECTED. He questioned why the funding level was changed. Mr. Peterson explained that it was at the request of Senator Stevens and the Senate Special Committee on Education. Mr. Peterson said it was considered to be a more reasonable funding level for charter schools. Senator Dyson requested an explanation from the bill sponsor. Senator Dyson MAINTAINED his OBJECTION. 9:13:28 AM Senator Thomas, sponsor, explained that the 1.08 level was more palatable and better than nothing. 9:13:59 AM TIM LAMKIN, STAFF, SENATOR GARY STEVENS, explained the increase in funding was a compromise and would represent a modest increase, but not one as substantial as in the original bill. Co-Chair Hoffman asked how the new number would affect Bethel's Yup'ik Immersion Charter School and Fairbanks' Effie Kokrine School. Senator Thomas explained that Effie Kokrine School is above 150 now and will have no problem. He did not have the status of the Yup'ik Immersion School. 9:15:51 AM EDDY JEANS, DIRECTOR, EDUCATION SUPPORT SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, reported that the Yup'ik Immersion program in Bethel has over 150 students and is funded as a separate site. Senator Olson asked about Nome's school. Mr. Jeans related that the Nome school has remained at about 44 students each year and receives supplemental grants outside of the foundation formula. The Juneau Charter School and the Fireweed Charter School in Homer also fall into this category. Senator Olson asked about a comparison of the multipliers, as found in the two fiscal notes, resulting in different funding levels. Mr. Jeans explained that the fiscal note for SB 152 for $648.8 reflects 1.27. Another fiscal note to CSSB 152(FIN) reflects the 1.08 level. 9:17:58 AM Senator Dyson requested a copy of the new fiscal note accompanying the new CS. He voiced appreciation for the intent of the bill and for Senator Davis' work on charter school legislation. He spoke of the financial burden on charter schools. Senator Dyson maintained his objection to the adoption of the new CS. He stated support for the original version. Senator Elton asked for the rational behind the 1.08 number. Mr. Lamkin explained that the numbers for school size come from statute. The number 1.27 is reflective of a school that is between 75-150 students. The number 1.08 represents a modest increase from what the schools are currently getting. Senator Elton said he is trying to figure out the 1.08 figure as it relates to school size. 9:22:41 AM Mr. Jeans said the 1.08 is in statute and is part of the school size adjustment table for schools. It is the adjustment factor for schools from 150-250 students. If a school is under 150, it is funded with the largest school in the district. For example, the charter school in Juneau is funded with the high school at a .84. In Kenai the charter school is funded with the high school at .92, and in Nome the charter school is funded with the elementary school at .97. The three schools below 150 all have a different adjustment factor. This proposal will set one adjustment factor for all charter schools below 150. It is a policy call on the Committee's part if it is 1.27 or 1.08. This applies in the formula to the school size adjustment for ADM. Then there are cost factor adjustments. It will establish a uniform application. At 1.08, it provides an additional $338,922. He explained that the highest supplemental in the past was $250,000 for charter schools below 150. He related that during the hearing, Senator Stevens asked each charter school if they would support the 1.08 and all replied in the affirmative. Senator Elton noted the pending two-high-school situation in Juneau and wondered how that would affect charter school funding. Mr. Jeans related that the charter school would not receive close to the 1.08 funding level because each high school would be over 750 students, which is at the top of the school size adjustment level, and charter school funding would remain at .84. 9:25:28 AM Senator Dyson said 1.27 does have a rational base for schools under 275. He noted that the Winterberry School had 143 students in 2006 and received $400,000. That created a significant financial crisis. Senator Dyson opined that charter schools have historically been very successful. He stated support for such schools and wished to provide an extra boost in the form of higher funding. 9:27:09 AM Senator Thomas referred to a chart in the members' packets regarding school size and eligibility. He reiterated that the 1.08 level was acceptable to the charter schools. Co-Chair Hoffman inquired if the Anvil City Science Academy would get funded at 1.97 under the new CS. Mr. Jeans responded that they would be funded at 1.08. They are currently funded at .97. Senator Olson clarified that Anvil City Science Academy would be funded at 1.08 under the new CS instead of 1.27 under the original bill. Mr. Jeans said that was correct. Senator Dyson thought the real issue was an attempt to keep spending down. He agreed that 1.08 was better than nothing. He thought the original bill was better. A roll call vote was taken on the motion. IN FAVOR: Stedman, Hoffman OPPOSED: Elton, Olson, Thomas, Dyson The motion FAILED (2-4). SB 152 was heard and HELD in Committee for further consideration. 9:30:41 AM