SENATE BILL NO. 235 "An Act relating to charter school approval and funding." 9:44:27 AM SENATOR KEVIN MEYER requested his staff present the legislation. JOMO STUART, STAFF, SENATOR MEYER, Senate Bill 235 amends existing state statute to allow the Department of Education & Early Development to compete on behalf of Alaska charter schools for facility maintenance & start-up grant funds nationally available through the U.S. Department of Education. Alaska and its charter schools are currently ineligible. Senate Bill 235 addresses this inequity in two ways: First, Senate Bill 235 removes the statutory cap which limits the number of charter schools, on a statewide basis to sixty. As the only authorizer of charter schools, local school boards thoroughly examine and evaluate charter applications prior to agreeing to accept a charter for their district. In this way, local school boards act as a check on charter school over-proliferation and growth - today, there are only 26 charter schools in existence across Alaska - making a state mandated cap unnecessary. Second, Senate Bill 235 creates in statute the programmatically required state funding mechanism necessary to comply under the federal grant program. It amends current law to establish in Alaska the per- pupil facilities aid program required under the U.S. Department of Education's applicant eligibility requirements. Senate Bill 235 then seeds the in-state aid program with a nominal $1 dollar per pupil per year. However, it is communities and school districts which must arrange for themselves the means to provide the 10% local contribution necessary to achieve the initial 90% federal match and subsequent, escalating match proportions. With minimal State involvement, but maximized local initiative & control, Senate Bill 235: · Improves the State of Alaska's ability to secure the Federal Start Up Funds for Alaskan Charter Schools. · Makes charter schools eligible to compete for federal grants for facilities. · Is strongly supported statewide by school boards, school districts, and charter schools. · Reduces a major barrier to the development of charter schools. · Benefits Alaska's children. · Will increase educational choices for parents & opportunities for students. Co-Chair Stedman mentioned one fiscal note from DEED for $301 thousand in general funds of which $150 thousand is requested for adoption of the regulations and the remainder is for one and one half positions to administer the program. 9:48:12 AM LORETTA NARDI, PRESIDENT, PARTNERSHIP FOR ALASKA CHARTER SCHOOLS (via teleconference), testified in support of the legislation. She stressed the importance of charter schools as public schools. Alaska charter schools often lease facilities with funds slated for student use. 9:51:02 AM BARBARA GERARD, PRINCIPAL, ACADEMY CHARTER SCHOOL (via teleconference) testified in support of the legislation. She stressed her support for charter schools. SB 235 strengthens Alaska's charter school law. 9:53:52 AM KIKI ABRAHAMSON, FIREWEED ACADEMY, HOMER (via teleconference), testified in support of SB 235. She stated that the facility equity allows access. 9:55:31 AM SAM KITO, FACILITIES ENGINEER, ALASKA EDUCATION AND EARLY EDUCATION, stated that the administration does not have a position on the legislation. He reported that the fiscal note was prepared based on the best interpretation of the legislative language and intent. The fiscal note includes funding to implement regulations to administer the program. The program allows start up or enhancement funding for charter school facility programs. The grant funding is stepped so that the federal government receives larger amounts in the first year with declining amounts in subsequent years. The department believes that regulations are necessary for the implementation of a new facilities funding program. The department estimates the need for a single full time staff person dedicated to the management of the funding. 9:58:04 AM Senator Thomas commented that the bill addresses the long term problem of financing for charter school facilities. Senator Huggins noted that there are 26 charter schools in the state. He opined that SB 235 represents a solution to part of the problem. He expressed support of the legislation. Charter schools are part of the national strategy to move the education system forward. Senator Meyer explained that he and Senator Huggins met with a group of concerned parents who see SB 235 as a mechanism to help charter schools whose largest obstacle is facility funding. 10:01:29 AM SB 235 was HEARD and HELD in Committee for further consideration.