SENATE BILL NO. 99 "An Act establishing a financial literacy education course for public schools; and providing for an effective date." 9:06:25 AM SENATOR BILL WIELECHOWSKI, SPONSOR, introduced himself and explained that SB 99 established a financial literacy education program for public schools, which required the offering of a half-credit course. The bill was based on statistics such as that 55 percent of Americans had less than $1,000 in savings. He opined that most Americans had nowhere the amount needed for retirement. He cited that the median average savings for American families was about $60,000. He cited that Alaska led the nation in credit card debt. He noted that 22 states had enacted financial literacy requirements in schools. Senator Wielechowski continued that after receiving feedback from school districts, he had crafted the bill to be as flexible as possible. He furthered that school districts could choose to incorporate various components of the information into different classes such as math or history. He referenced page two of the bill, and listed provisions such as the inclusion of topics on how to make a budget, basic money management principles, income taxes, and savings and retirement. 9:08:52 AM NICK MOE, STAFF, SENATOR BILL WIELECHOWSKI, addressed a Sectional Analysis (copy on file): Section 1. AS 14.30 relating to public schools, adds a new section a. directing school districts to establish and provide a financial literacy education program, equivalent to a half credit, for students in grades nine through 12 that will be approved by the Department of Education & Early Development. b. provides a list of topics to be covered in the course, to the maximum extent practicable. Section 2. Provides an applicability date of January 1, 2026, for the first graduating class that will need to meet this requirement. Section 3. Provides an effective date for the bill of July 1, 2025. Senator Bishop believed that there was staff from the Department of Education and Early Development (DEED) online and available for questions. 9:10:12 AM KELLY MANNING, DEPUTY DIRECTOR, DIVISION OF INNOVATION AND EDUCATION EXCELLENCE, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT (via teleconference), introduced herself. Senator Bishop was curious about how many districts already taught something like financial literacy. Ms. Manning did not have numbers to provide but agreed to bring the information to the committee at a later time. She knew that there were some components of financial literacy offered in math curriculum in some districts. Co-Chair Olson asked how the bill was not considered an unfunded mandate for school districts. Ms. Manning could not speak to whether school districts would perceive the bill as an unfunded mandate. She referenced fiscal notes that reflected resources needed to come up with curriculum to meet the bill requirements. She thought districts would need to weigh in on what the financial implications would be. Co-Chair Olson asked the bill sponsor to address Senator Bishop's question. Senator Wielechowski relayed that he was not aware of opposition to the bill, and that he had received a great deal of support from the Anchorage School District (ASD). He noted that school districts in Anchorage and Haines already had components of the curriculum. He had worked with the Association of Alaska School Boards (AASB) to try to make it so that bill was not an unfunded mandate. He noted that the department had a small fiscal note that would provide the curriculum from the bill. He noted that there was standardized curriculum available. He thought the flexibility in the bill would help to keep costs down. 9:13:34 AM Senator Merrick asked if the sponsor imagined that math teachers would be teaching the course. Senator Wielechowski thought school districts would be teaching the content differently. He pondered that some school districts would choose to have a specific financial literacy class, while others may have components taught via applied mathematics. He reiterated that the bill was written to be flexible. He thought it was important for kids to graduate knowing basic fundamental financial information. Mr. Moe discussed a presentation entitled "Financial Literacy - SB 99," (copy on file). Mr. Moe showed slide 2, "What is Financial Literacy?": ? Understand how much you earn and spend ? Repay and avoid debt ? Build assets and achieve personal goals ? Achieve financial security later in life Mr. Moe turned to slide 3, "Why do we need Financial Literacy?: ? Only 1/3 of Americans can comfortably cover a $400 emergency ? Average credit card debt in Alaska: $8,026 ? Average student loan debt in Alaska: $34,024 ? F rating for financial literacy education Mr. Moe noted that Alaska had the lowest at completion rate of the Free Application for Federal Aid (FAFSA), which he thought was a barrier to pursuing college and trade schools. Mr. Moe advanced to slide 4, "Senate Bill 99": ? Adds a 0.5 credit in financial literacy ? Course should cover topics including: ? Making a budget ? Avoiding fraud and financial deception ? Basic principles of retirement accounts ? Postsecondary financial aid and scholarships Mr. Moe considered slide 5, "Committee Substitute": ? Met with Stakeholders ? Flexibility ? Relevant Content Mr. Moe mentioned that there had been a few changes to the bill in the Senate Education Committee. Mr. Moe addressed slide 6, "Support for Senate Bill 99, which listed different stakeholders that including parents, teachers, students, school administrators, and school board members. 9:17:38 AM Co-Chair Olson OPENED public testimony. 9:17:50 AM Co-Chair Olson CLOSED public testimony. Senator Bishop thanked the sponsor for bringing the bill forward. He shared that he had taken a similar course in economics in high school. Co-Chair Olson thought it was concerning that the state was leading the nation in credit card debt, and residents had so little in savings for emergencies. SB 99 was HEARD and HELD in committee for further consideration.