SENATE BILL NO. 216                                                                                                           
                                                                                                                                
     "An Act  relating to the  calculation of state  aid for                                                                    
     schools    that    consolidate;   relating    to    the                                                                    
     determination of  the number of schools  in a district;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
9:15:41 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon recalled a  question from Senator Stevens                                                                    
regarding the cost to the state.                                                                                                
                                                                                                                                
9:16:04 AM                                                                                                                    
                                                                                                                                
JONATHAN KING, STAFF, SENATOR  NATASHA VON IMHOFF, discussed                                                                    
a  brief  history of  the  reason  for the  legislation.  He                                                                    
stated  that the  purpose of  the  bill was  to promote  the                                                                    
efficient   use   of   Alaska's  existing   K-12   education                                                                    
infrastructure. He highlighted the sections of the bill.                                                                        
                                                                                                                                
Co-Chair MacKinnon wondered whether  the state would pick up                                                                    
the cost for transportation.                                                                                                    
                                                                                                                                
9:18:57 AM                                                                                                                    
                                                                                                                                
HEIDI  TESHNER,  DIRECTOR,  FINANCE  AND  SUPPORT  SERVICES,                                                                    
DEPARTMENT OF EDUCATION  AND EARLY DEVELOPMENT, (DEED)stated                                                                    
that the formula  program in statute was a  block grant. She                                                                    
stated  that there  would be  no increase  to the  state, as                                                                    
long as the  per pupil student amounts  currently in statute                                                                    
remained  unchanged. She  noted  that districts  may see  an                                                                    
increase in transportation costs.                                                                                               
                                                                                                                                
Co-Chair MacKinnon queried additional comments.                                                                                 
                                                                                                                                
ELWIN BLACKWELL, SCHOOL FINANCE  MANAGER, SCHOOL AND FINANCE                                                                    
FACILITIES  SECTION,  DEPARTMENT   OF  EDUCATION  AND  EARLY                                                                    
DEVELOPMENT, replied in the negative.                                                                                           
                                                                                                                                
Co-Chair    MacKinnon    wondered    whether    the    total                                                                    
transportation  program  would  not  increase.  Ms.  Teshner                                                                    
replied in the affirmative                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon surmised  that  the state  would not  be                                                                    
responsible  for any  decisions  or  financing required  for                                                                    
increased transportation  costs for individual  schools. Ms.                                                                    
Teshner agreed.                                                                                                                 
                                                                                                                                
Senator Micciche wondered why the  bill would save the state                                                                    
some  level  of  funding  after   year  four,  but  was  not                                                                    
adequately  reflected  in  the   fiscal  note.  Ms.  Teshner                                                                    
agreed.  She looked  at page  3  of the  fiscal note,  which                                                                    
explained the reason for the  lack of reflection. She stated                                                                    
that  it was  because  it was  unknown  which schools  would                                                                    
consolidate, in order to determine the state savings.                                                                           
                                                                                                                                
Co-Chair  MacKinnon agreed  that  the fiscal  note had  some                                                                    
cost,  but  another  that  did   not  reflect  the  intended                                                                    
savings. She  stressed that there  was no  increased funding                                                                    
from the state level.                                                                                                           
                                                                                                                                
Vice-Chair  Bishop  MOVED to  REPORT  CSSB  216(FIN) out  of                                                                    
committee with  individual recommendations  and accompanying                                                                    
fiscal notes. There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
CSSB  216(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation and  with one  new fiscal  impact note                                                                    
from the  Department of Education and  Early Development and                                                                    
one new  zero fiscal note  from the Department  of Education                                                                    
and Early Development.                                                                                                          
                                                                                                                                
9:23:45 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:26:15 AM                                                                                                                    
RECONVENED