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." 11:10:58 AM Co-Chair Hoffman MOVED to ADOPT the committee substitute for HB 287(brf sup maj fld), Work Draft 30-LS1229\T (Wallace, 4/13/18). Co-Chair MacKinnon OBJECTED for discussion. Co-Chair MacKinnon announced that the committee had been working on a proposal to forward-fund education. She stated that the Work Draft had a funding source. 11:12:04 AM PETE ECKLUND, STAFF, SENATOR LYMAN HOFFMAN, wondered whether he should walk through the bill, or only highlight the change in the committee substitute. Co-Chair MacKinnon felt that there should be a walk through of the bill, and then an explanation of the changes. She remarked that there was work to ensure forward funding of education, but she wanted the information delivered as quickly as possible. Mr. Ecklund noted that on page 2 was the numbers section. The items was K-12 aid and support to school districts and Mt. Edgecumbe. He stated that those items did not fund Department of Education and Early Development (DEED) programs, but rather went directly to the schools and school districts. He noted the change from the previous version, which was the update on Mt. Edgecumbe. He stated that there was an increase requested by the administration after the other body had moved the legislation. It was a $250,000 general fund program receipt for Mt. Edgecumbe. He noted that page 3 had the different funding sources from Section 1 of the bill. He stated that the same structure was on page 4. He looked at page 5, Section 4, which was a $30 million grant that would become effective in FY 20. He stated that the grant would be run through adjusted average daily membership, so the grant would be distributed to school districts as if it were run through the foundation formula. He stated that a $30 million was equivalent to a $117 Base Student Allocation (BSA) increase, which would become effective in FY 20. He noted that Section 5 was FY 19 fund capitalization for the FY 19 Education Foundation Program, and fully funding the BSA at $1.89 billion. It also fully funded the people transportation formula for FY 19 at $78.1 million effective in FY 19. He stated that Section 5 also fully funded the BSA formula in FY 20 with an FY 20 effective date. He stated that it also funds the student transportation formula in FY 20, with an FY 20 effective date. He noted that all the funding in Sections 4 and 5 was from the general fund. He remarked that Section 6 was standard lapse language. He shared that Section 7 was a contingency that stated that the FY 20 funding of the $30 million; FY 20 forward and early funding of K-12 and people transportation formulas would only become effective upon the passage of a version of SB 26. The other sections were effective dates. Co-Chair Hoffman noted that once the bill passed the Senate, early funding for FY 19 would only require the House to concur. Mr. Ecklund agreed. 11:16:57 AM AT EASE 11:17:32 AM RECONVENED 11:17:38 AM Senator Micciche wondered whether Section 5(a) was the same amount of the BSA that was in the past, and only required concurrence. Mr. Ecklund replied in the affirmative. Senator Micciche noted that the FY 20 funding required passage of SB 26. Mr. Ecklund agreed. Co-Chair MacKinnon noted that the issue was that the budget would draw from the earnings reserve account (ERA), and she explained the ERA. Co-Chair Hoffman stressed that the Senate was not demanding any version of SB 26. He noted that page 5, lines 22 and 23 stated that those provisions, if passed, would be enacted with a version of SB 26. He remarked that the burden was placed on the legislature to come to an agreement on SB 26. Co-Chair MacKinnon WITHDREW the OBJECTION. There being NO further OBJECTION, the proposed committee substitute was adopted. Co-Chair MacKinnon discussed the bill history. 11:22:35 AM AT EASE 11:22:47 AM RECONVENED 11:22:49 AM Co-Chair MacKinnon OPENED public testimony. Co-Chair MacKinnon CLOSED public testimony. Co-Chair Hoffman noted that the operating budget had been passed the day prior. He stressed that education was a priority, and did not want to lay off teachers. Co-Chair MacKinnon announced that there was a regular public hearing. Senator Micciche stressed that education was a priority in the Senate. He understood that there was talent lost in education, because districts were not aware of the amount of money that would be available. He stressed that forward funding education would help districts to understand their funding. He appreciated the section that would help the public recognized the importance of a structured draw. Vice-Chair Bishop thanked those who worked on the bill. 11:29:01 AM Senator Olson felt that a structured draw was important with the option to draw from the ERA. Co-Chair MacKinnon stressed that there were "no strings attached" to FY 19's funding. Co-Chair Hoffman stressed that the previous version had a 2018 draw form the ERA. The current bill did not have a draw out of the ERA. Co-Chair MacKinnon remarked that it would focus the attention on the steps that would be taken to further efforts. Co-Chair Hoffman MOVED to REPORT SCS HB 287(FIN) from committee with individual recommendations. There being NO OBJECTION, it was so ordered. 11:31:48 AM AT EASE 11:34:21 AM RECONVENED SCS HB 287(FIN) was REPORTED out of committee with a "do pass" recommendation. Co-Chair MacKinnon discussed the following meeting's agenda. Co-Chair MacKinnon ADJOURNED the meeting. 11:35:43 AM Co-Chair MacKinnon RECINDED THE ACTION TO ADJOURN. There being NO OBJECTION, it was so ordered. 11:35:55 AM RECESSED 1:17:28 PM RECONVENED Senator Olson OBJECTED to adjourning the meeting. Co-Chair MacKinnon stated that Senate Finance stayed active during the last few days of session. She remarked that the meeting could be adjourned for a few minutes. Senator Olson WITHDREW his objection. There being NO OBJECTION, it was so ordered.