CHAIRMAN RIEGER called the Senate Health, Education and Social Services (HESS) Committee to order at 1:50 p.m. and introduced SB 65 (CENTRALIZED CORRESPONDENCE STUDY) as the only order of business. DONNA EMERSON, a 13-year resident of Funter Bay, said her two children have been educated exclusively through the Alaska Centralized Correspondence School, and they have found it to be both an excellent and very supportive school curriculum. Ms. Emerson said she is aware of the budget cuts CCS is facing and her concern is that they be able to maintain their excellent educational opportunities to students throughout the state, for both students who have no alternative schooling available and students who choose this form of education. She pointed out that the average cost per student on CCS is $2,600 as opposed to the average cost per student attending regular schools is $7,335. Number 090 SENATOR DUNCAN, prime sponsor of SB 65, explained that the Alaska Centralized Correspondence School receives its funding through AS 14.17.022, which allows counting of only elementary students and not secondary students, and is prorated at 65 percent of the unit value. This funding scenario has created an inequity because the centralized correspondence unit provides services to over 1,160 students, half of those students being in high school. The result is that the correspondence study program is grossly underfunded to continue the valuable service it provides throughout the state. Current year proposed cuts to the summer school program causes further difficulties. SB 65 allows the school to count enrollment of both elementary and secondary students for funding purposes. The bill also amends the centralized correspondence study statutes to recognize the correspondence study program as a public school of the state with a term of 180 days. With the bill, the State Board of Education serves as the school board for correspondence study teachers, and these teachers will be fully recognized as public school teachers rather than state employees. Senator Duncan said he thinks the bill acknowledges the contributions made to education in this state by the centralized correspondence program and will enable it to continue. Senator Duncan directed attention to a proposed committee substitute which was drafted at the request of the Centralized Correspondence School Association, based on the Department of Education's objections to some of the provisions that were contained in the original bill. Number 150 SENATOR SALO asked if the bill addresses the problem of the elimination of the summer school program. SENATOR DUNCAN answered that this would give a stable funding source to the correspondence study program and allow them to get funding for not only elementary students, but for secondary students as well, so it should help solve that problem. Number 160 BILL ELKINTON, a Centralized Correspondence School teacher representing the membership of the Central Correspondence School Education Association (CCSEA), presented a review of his teaching experience and educational courses he has taken over the years, as well as the education received by two of his children who participated in the Central Correspondence School. Mr. Elkinton said correspondence is a valid type of delivery. They are an accredited K-12 school as evaluated by the Northwest Accreditation Association. Mr. Elkinton said through the years, CCS has sought to meet the need of those students who seek their services or whose district refers them to the program. The most recent growth in service was generated in the late eighties by the mandate to provide summer school by mail to those youth endorsed by their local school. The revenues generated by this service obscured for awhile the desperate need for equity in funding. This resulted from the sharing of some facilities, staff and equipment with their regular school. With the virtual decease of summer school due to the $2 million cutback last session, CCS has been confronted with a dismal scene. Mr. Elkinton said SB 65 seeks equity in school and teacher status. CCS's standing as an accredited public school of Alaska demands equity of funding, and as certified, well trained and experienced teachers, they deserve equity of treatment under Title 14. Mr. Elkinton related that after receiving the Department of Education's response in February to the original bill, the membership of CCSEA voted to seek the committee substitute which deletes tenure and the individual contract provisions. He said this reflects an honest attempt to expedite this legislation and counter some anticipated resistance on those items by the administration. He urged the prompt consideration and passage of the committee substitute. Number 275 GAIL HAYNES, a counselor with the Centralized Correspondence School and representing CCSEA, distributed pictures of a group of academic decathlon students and discussed their academic achievements. These five students were able to bring home three gold medals and one silver this year. She noted that four senior students all scored above the 90th percentile in their SAT's and ACT's. Ms. Haynes also discussed the importance of CCS to at-risk students who sometimes will be in the program just a short while and then they will choose to go back to the regular schools, which is a positive thing that CCS strives for. Ms. Haynes said CCS also serves a diverse body of people such as people who are traveling around the world and are Alaska residents; seasonal and transient people who are Alaska residents, but spend only part of the year in the state; missionaries in Africa and South America who are Alaska residents; and Alaska exchange students who are supplementing their education in other countries. Ms. Haynes also emphasized the importance of family participation and support to the schools in order for them to do their job. Ms. Haynes urged the committee's favorable consideration and passage of the committee substitute. Number 410 DAVE STEWART, Human Resources Manager, Department of Education, outlined the following four items in the committee substitute that the department believes are unnecessary: (1) AS 14.14.105 & .107 relating to the sick leave bank. The department believes that teachers in Centralized Correspondence Study are covered by collective bargaining on this issue. (2) AS 14.20.220 relating to school experience for salary scales. The CCS teachers' salaries are currently collectively bargained. The current collective bargaining agreement does not call for bringing in experience outside of the Centralized Correspondence Study school. (3) AS 14.20.280 - .350 dealing with sabbatical are unnecessary as CCS teachers have negotiated contract language allowing professional development. There are currently no state supported sabbaticals. Sabbaticals outside of school districts are either at the employee's expense or subsidized by the school district. Language in the current collective bargaining agreement would allow that same relationship between teachers in the Centralized Correspondence Study school. (4) AS 23.40.070 - .260 relating to the Public Employees Relations Act. The department believes that the Centralized Correspondence Study teachers are currently covered by that Act. Number 435 SENATOR SALO said over the years the Centralized Correspondence Study teachers have been a group of teachers who basically are treated as state employees and that has caused problems from their perspective. She asked if the committee substitute addresses those problems. DAVE STEWART replied that it is difficult for him to understand what it is they want that they don't already have. Number 453 SENATOR SHARP commented that the fiscal note shows an increase in the source of funding for the foundation of $351,400, and asked if that is attributable to picking up 65 percent of the secondary students. DAVE STEWART responded that the change in the foundation funding is a result of the change in the elementary to secondary funding levels. In the formula, the secondary level students are being funded at an elementary level rather a secondary level, and the number of secondary level students in the school has increased. Number 485 MARYLOU PURVIS, Coordinator of Student Services, Centralized Correspondence School, said she was present to represent the Department of Education's position on Section 2 of SB 65. The department supports Section 2 as an equitable way of funding the secondary students that are currently served by Centralized Correspondence School. At present, CCS operates primarily on foundation funds, based on the number of students served. The school is allowed to use 65 percent of the elementary level. Their student population has changed over the years and, now, approximately 50 percent of the students served by CCS are secondary students. She said allowing secondary funding for secondary students is critical to maintaining a quality program as there are greater costs associated with educating secondary students. Ms. Purvis said overall enrollment in CCS has increased by 70 percent since 1979, thus, their enrollment of over 1,100 students places CCS as the 15th largest school district in the state if they were to be compared to the other 54 school districts. CCS teachers have developed secondary courses to meet the needs of secondary students. The costs associated with preparing the courses, publishing the materials, ordering the text books, distributing materials and teaching the courses have increased. The department requests that the Senate consider passing Section 2 of SB 65 to help maintain the quality of their education, Ms. Purvis said. Number 506 SENATOR DUNCAN asked Mr. Stewart if the Department of Education supports Section 1 of the committee substitute. DAVE STEWART answered that with the deletion of paragraphs 1, 6 and 7 in Section 1, the department would support that section. BILL ELKINTON said he could find no objections to having these provisions in the standard statutory language as it is for other teachers. CCS teachers are certified, experienced, quality teachers, and they need equity with other teachers across the State of Alaska. Number 550 SENATOR SALO noted her district eliminated its correspondence programs during the last five years when they have been under a financial crunch, and she asked Ms. Purvis if other districts have done the same. MARYLOU PURVIS answered that some districts have pared their programs down, but several districts have very active correspondence programs. Number 563 WILLIE ANDERSON, representing NEA-Alaska, noted that Senator Rieger had, in looking at the fiscal note, asked if there should be an offset because the students would be leaving the public school setting. Mr. Anderson said a student in the CCS program is not counted in a regular school program. Currently, they are counted as correspondence students and funded at an elementary level. All of the students in Centralized Correspondence Study are funded at 65 percent of the elementary level. The fiscal note reflects an increased cost for secondary students, so that is an accurate reflection of the cost. TAPE 93-33, SIDE B Number 030 CHAIRMAN RIEGER said he thought there were two issues in the bill: one is of trying to resolve some kind of a labor issue between CCS teachers and the Department of Education; and the other is trying to make correspondence study monies available. SENATOR DUNCAN agreed, saying there were two distinct sections of the bill. DAVE STEWART reiterated that the department supports Section 1 with the deletion of paragraphs 1, 6 and 7. Number 070 SENATOR SALO stated that CCS teachers are certified and experienced teachers, and she believes that they should be able to include that experience. DAVE STEWART explained it is not that the department objects to the inclusion of experience outside of CCS, rather the department maintains that the inclusion of that experience is a matter of collective bargaining and should be discussed and that determination be made at the bargaining table. Number 100 SENATOR DUNCAN said he had hesitation about removing the provisions in Section 1, but he also thinks it is important for Section 2 to move forward. Number 115 SENATOR DUNCAN moved to delete lines 3, 10, 11 and 12 on page 2 of the draft CSSB 65(HES) and to adopt the revised committee substitute. Hearing no objection, the motion carried. Number 145 SENATOR DUNCAN moved that CSSB 65(HES) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.