CS FOR HOUSE BILL NO. 332(FIN)(title am)                                                                                      
                                                                                                                                
     "An  Act  defining  an  elementary   school  to  include                                                                   
     certain   pre-elementary   programs  and   relating   to                                                                   
     counting pre-elementary  students in a  school's average                                                                   
     daily membership."                                                                                                         
                                                                                                                                
REPRESENTATIVE  BRYCE  EDGMON,  Sponsor, explained  that  the                                                                   
bill would allow pre-elementary  school programs such as Head                                                                   
Start  to be  eligible for  federal E-Rates,  a subsidy  that                                                                   
flows  from  the  Universal  Service  Administrative  Company                                                                   
(USAC)  funds.    It  would  not  impact  the  average  daily                                                                   
membership.   It  would  transfer about  $14  million to  $20                                                                   
million a  year in federal funds  to Alaska.  It  would allow                                                                   
Head Start  to receive  federal funds  unencumbered  by state                                                                   
matching funds.   He gave the  Bristol Bay Native  Head Start                                                                   
program as an example.                                                                                                          
                                                                                                                                
Senator Olson  asked where  the $15 -  $20 million  goes now.                                                                   
Representative Edgmon  said it goes to K-12  facilities which                                                                   
must qualify  to receive the funds.   Senator Olson  asked if                                                                   
the  department is  in  favor of  the  bill.   Representative                                                                   
Edgmon said they were.                                                                                                          
                                                                                                                                
10:52:38 AM                                                                                                                   
                                                                                                                                
EDDY JEANS, DIRECTOR, EDUCATION  SUPPORT SERVICES, DEPARTMENT                                                                   
OF EDUCATION AND  EARLY DEVELOPMENT, testified  in support of                                                                   
the bill.   He noted  previous efforts  to get this  approach                                                                   
reauthorized in legislation.                                                                                                    
                                                                                                                                
10:53:17 AM                                                                                                                   
                                                                                                                                
Senator Huggins asked if there was a preference for pre-                                                                        
elementary programs  over elementary programs  regarding this                                                                   
federal  funding.   Mr.  Jeans explained  that  there was  no                                                                   
competition  because  it  is a  national  program.    Senator                                                                   
Huggins asked if the pre-school  program has to be on-site at                                                                   
an elementary school.   Mr. Jeans did not think  so.  Senator                                                                   
Huggins  asked   for  a  definition  of  a   recognized  pre-                                                                   
elementary program.  Mr. Jeans did not know.                                                                                    
                                                                                                                                
Senator Thomas clarified  that the bill does  not change what                                                                   
exists  today regarding  student  count numbers.   Mr.  Jeans                                                                   
agreed.                                                                                                                         
                                                                                                                                
10:55:27 AM                                                                                                                   
                                                                                                                                
Senator Elton MOVED to REPORT  CSHB 332(FIN)(title am) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB 332(FIN)(title am) was REPORTED  out of Committee with a                                                                   
"do  pass" recommendation  and with  zero fiscal  note #1  by                                                                   
Department of Education and Early Development.                                                                                  
                                                                                                                                
AT-EASE:       10:55:58 AM                                                                                                    
                                                                                                                                
RECONVENED:    3:43:37 PM