HB 147 STATE BOARDING SCHOOLS/CHARTER SCHOOLS  CHAIRMAN WILKEN announced that CSHB 147(HES) am was the next order of business before the committee. REPRESENTATIVE CON BUNDE , Prime Sponsor, informed the committee that Mt. Edgecombe is Alaska's only authorized boarding school which has earned an excellent academic reputation. Representative Bunde explained that CSHB 147(HES) am proposes to increase opportunities for state boarding schools in order to increase the quality of education, especially in rural Alaska. The boarding function of the boarding schools under this bill would not be funded by the state. He had heard from some communities, rural centers, that are interested in a boarding school program. There are a number of small schools in rural Alaska and as the foundation formulas move forward, the small schools will be encouraged to consolidate. The option of a boarding school should be available. CHAIRMAN WILKEN noted that the Superintendent of Galena had visited him and discussed the facility there. REPRESENTATIVE BUNDE explained that the entire Air Force facility located in Galena is being kept in warm storage. The entire capital investment would be available for a school program. Representative Bunde noted that the Air Force is paying the water and sewage. Also a contractor with some 40 employees provides food service which would also be available to the students. Of course, Galena would like some additional state money to begin, but Representative Bunde believed that there are other sources. Number 135 JOHN CYR , President of NEA-AK, was concerned with the finances. If school districts decide to build boarding schools in rural Alaska, that is an expensive proposition. Someone will have to pay for the boarding of those students. Mr. Cyr stated that financing boarding schools are too expensive unless the money is taken from regular programs. Mr. Cyr suggested that this bill is similar to an unfunded non-mandate. Mr. Cyr also expressed concern with a statewide program being administered by a local school district. Currently, statewide programs such as Mt. Edgecombe are administered by the state, under the department and the State School Board. Mr. Cyr believed that process to be appropriate because the program is offered to all children of Alaska not just those in a local district. As written, CSHB 147(HES) am does not have a provision for that. Mr. Cyr expressed the need for state oversight in these programs. With regard to the concern over the lack of state oversight, REPRESENTATIVE BUNDE explained that if a boarding school were to be a charter school, that must be approved by the local school district and the state school board. In that event, there would be a level of state approval. BARBARA KANGAS , testifying from Kenai, was concerned with the language in Section 1 stating, "may not be paid for with state money but may be paid for with funds contributed by sources other than the state." Ms. Kangas informed the committee that her local school budget was cut by $2.2 million. The Kenai has a number of charter schools on line for next year. Ms. Kangas did not understand how funding for another program could be mandated when current programs cannot be funded. REPRESENTATIVE BUNDE said that CSHB 147(HES) am was permissive and did not mandate anything. SENATOR WARD noted that Galena has 180 days evacuation procedure. Senator Ward hoped that Galena would become a vocational training program for the rural Native population. Senator Ward identified the regional corporations and the Bureau of Indian Affairs for Native students which would offset some of the costs as in Wildwood. Senator Ward believed that this was an excellent concept and such should be provided as options for the local districts. SENATOR WARD moved to report CSHB 147(HES) am out of committee with individual recommendations and accompanying fiscal notes. Without objection, it was so ordered.