HOUSE BILL NO. 287(brf sup maj fld) "An Act making appropriations for public education and transportation of students; and providing for an effective date." 9:13:21 AM REPRESENTATIVE PAUL SEATON, SPONSOR, offered a brief history on the genesis of the legislation. 9:15:54 AM Representative Seaton discussed the presentation, "HB 287 Pupil Transportation and Education: An Early and Stand- alone Appropriation Bill" (copy on file). Representative Seaton highlighted Slide 2, "HB 287- Comparison": HB 287 - As Introduced  Section 1 - Appropriates $50,853,100 for Foundation Program, Boarding Home Grans, Youth in Detention, Special Schools, and Mt. Edgecumbe Boarding school. Section 2 - Sets out funding by agency. Section 3 - Sets out funding for appropriations in Section 1. Section 4 - Appropriates $1.2 billion of CBR to the public education fund. Appropriates an estimated $67.8 million from the SBR for student transportation. HB 287 - As passed by the house  Section 1 - Unchanged Section 2 - Unchanged Section 3 - Unchanged Section 4 - $1.2 billion of CBR funding is removed from the bill. Without the CBR funding, the "estimated to be" of SBR funding now needed for student transportation is $78.2 million. 9:17:07 AM Representative Seaton displayed Slide 3, "HB 287 - Intent of the bill": • Stand-alone education appropriations bill. • Allow school districts to know their level of state aid in advance of passage of the state operating budget. • Avoid unnecessary teacher layoff notices. • Same level of funding as the Governor's request. • Use $1.2 billion from CBR and about $67.8 million from SBR. 9:17:52 AM Representative Seaton addressed Slide 4, "K-12 Funding History - All Funds (FY15-19). The slide depicted a bar graph that listed the funding for K-12, broken down by Mount Edgecumbe Boarding School Facilities Maintenance, Mt. Edgecumbe Boarding School, Special Schools, Youth in Detention, Boarding Home Grants, Additional Foundation Funding, Pupil Transportation, and Foundation Program. 9:18:49 AM Co-Chair MacKinnon noted that the green chunk on the first bar for the FY 15 final budget was not additional funding but was one-time money that had been distributed through the formula to create an equitable spread. Representative Seaton agreed. 9:19:57 AM Representative Seaton highlighted Slide 5, "End-of-Year Savings Balances - FY 15-19. The slide showed a bar graph that end-of-year savings balances for the Statutory Budget Reserve and the Constitutional Budget Reserve (CBR). 9:20:45 AM Representative Seaton addressed Slide 6, "Earnings Comparisons - CBR and Permanent Fund." The slide offered earnings comparisons of the FY 17 earning of the CBR and the 10-year earning projection of the Permanent Fund. 9:21:27 AM Representative Seaton discussed Slide 7, "Effect of Earnings Rate on $1.2 Billion." The slide reflected a difference of $632 million in 10 years between the CBR and the Permanent Fund. 9:21:58 AM Representative Seaton looked at Slide 8: Education is one of the highest priority programs for the state and educators are shaping future generations. HB 287 reflects the importance of education to our state. 9:22:22 AM Co-Chair Hoffman said that discussions about education were always heated and that every legislator claimed that education was a top priority. He said that the bill would be discussed during caucus. 9:22:54 AM Senator Stevens queried the dangers of a live appropriation bill between the House and the Senate. Representative Seaton said that it would take agreement by both bodies to pass something. 9:24:09 AM Senator Micciche hoped that the legislature could work to make Alaskans feel more secure in the financial health of the state. 9:25:11 AM Representative Seaton stated that he was willing to work with other funding sources for the bill and was eager to work with the Senate on a successful piece of legislation. 9:26:08 AM Co-Chair MacKinnon noted that there was an assertion that $1 billion in the CBR was adequate, which she believed was debatable. She hoped that a funding source could be agreed upon by both bodies. She believed that a draw from the earnings account should not happen without a structured draw. 9:28:39 AM Vice-Chair Bishop expressed appreciation for the legislation. 9:28:56 AM Co-Chair Hoffman discussed housekeeping. HB 287(brf sup maj fld) was HEARD and HELD in committee for further consideration.