SB 95-SCHOOL GRADE LEVELS VICE-CHAIRMAN KELLY brought up SB 95. SENATOR RANDY PHILLIPS, sponsor of SB 95, asked if Larry Wiget was on line. Mr. Wiget responded that he was, as well as school board members Debbie Ossiander and Kathi Gillespie who wish to testify. Number 437 SENATOR PHILLIPS discussed the school overcrowding problem facing Anchorage. Currently Chugiak High School is badly overcrowded, with space for 1750 students and attendance at 2100 students. The dilemma is whether to add more rooms or build a new high school. The wish of the community is to have a second high school, but DOE's regulations don't allow for that. There are two middle schools, Gruening at capacity, and Mirror Lake under capacity. This bill was recommended by the Anchorage School District in order to adjust the overcrowding situation with the middle/junior high school, but more importantly, with the high school. SENATOR PHILLIPS pointed out that the three committee members present are experiencing expanding high school populations. He stated this legislation is one option to maintain student levels and still deliver a quality high school. MS. DEBBIE OSSIANDER, Anchorage School Board member, testified in support of SB 95. It would allow school districts necessary flexibility in order to maximize student achievement. National research shows that grouping the middle school configuration of 6th, 7th and 8th grades has academic and social benefits by promoting achievement and dealing more effectively with student discipline matters. This configuration of grades is a trend in urban districts in Alaska. Right now regulations penalize school districts if they decide to house 6th-7th and 8th grades in middle schools, by considering 6th graders as elementary students who qualify for a smaller square footage. MS. OSSIANDER said the logic of housing these grades in one building and saying one group of kids needs less room than another totally escapes her. The DOE fiscal note appears to assume that all 6th graders will be moved into the middle school model, but that's not the Anchorage school board's expectation. The fiscal note also appears to assume the state will reimburse all school construction. The regulations penalize districts if they have housed 6th-7th and 8th grades together in the past by not qualifying for the additional school construction they will need in the future. The school district believes SB 95 would be very helpful. Number 489 MS. KATHI GILLESPIE, Anchorage School Board member, repeated that instructionally school districts in Kenai, Juneau, Anchorage and Mat-Su are moving toward the 6th-7th-8th middle school model. Last year in the Foundation Formula re-write, the per-pupil allocation did away with the designation between elementary and secondary students. Operating cost is not the problem; it is the amount of square footage these kids have when they are still designated as elementary or secondary students. The school board wants flexibility to decide if 6th graders are more appropriately put in an elementary or a secondary school, and to be allowed by the state to deliver a secondary program with more square footage, several teachers, and more music and P.E. MS. GILLESPIE concluded that the issue is statewide in scope and there are schools out of compliance with DOE regulations. Number 510 MR. CARL ROSE, Executive Director, Alaska Association of School Boards, stated the association supports SB 95 and feels the flexibility and provision of local control in determining if a school district wants to use a 6-7-8 model is appropriate. SENATOR ELTON asked Mr. Rose if the schools now having the 6-7-8 model are illegal, and if they aren't, why the bill is needed. Is it just an issue of square footage for students? MR. ROSE replied that clarification may give school districts the opportunity to exercise a choice that may be restricted right now. School districts may be hindered in moving in this direction, and those already employing these strategies may be in noncompliance. The association would like assurance that the square foot advantage for the 6-7-8 model would be recognized. Currently if a new school is being built including a 6-7-8 model, the district does not receive credit for those 6th grade students because they're not included in the secondary classification. Number 531 MR. MICHAEL MORGAN, Facilities Manager for the Department of Education, responded to a couple earlier comments. Currently the school districts have the choice to combine grades almost any way they choose. From the department's perspective it's strictly a square footage issue. If they do a combination of 6th-7th and 8th graders, they get credit for the 6th graders, but not at the same rate as the 7th and 8th graders. There is a differential on the amount of square footage between the two. The fiscal note is the most conservative estimate and does not assume that all square footage will immediately become eligible for replacement for 6th graders; if that were the case, the fiscal note would double. VICE-CHAIRMAN KELLY asked if the fiscal note is $126 million dollars. MR. MORGAN replied it is. The fiscal note doesn't take into account the on-going future increases, only the immediate need based on district populations. It doesn't consider the increase in future maintenance costs at the larger facilities, or the increase in maintenance and operation costs that will accrue to districts. Last year the department gave the Anchorage School District more flexibility through a regulation change passed by the State Board of Education allowing communities the choice to 100% fund facilities. There is a provision to not have that square footage counted against them as the department looks at eligibility for additional state-funded square footage. Number 554 SENATOR WILKEN asked if Mr. Morgan is saying 6th graders are counted as one head each, but only get 106 square feet instead of 150 square feet. MR. MORGAN answered yes. VICE-CHAIRMAN KELLY asked if the fiscal note refers to $126 million extra dollars for the new schools that would be built under the new scenario in the next fiscal year. MR. MORGAN replied yes, if the projects were funded. MS. OSSIANDER admitted she did not clearly understand Mr. Morgan's comments. In reference to the chart, she asked if he said the state would 100% fund all projects submitted to it. MR. MORGAN responded that the chart assumes the state would fund these projects at the 70% level. SENATOR PHILLIPS added that it assumes the local government votes for the bonds, as well. MR. MORGAN clarified it looks at either of two programs: funding local bonds, or grants to municipalities which are funded at the 70% level. Chugiak needs to put the proposed new high school on the ballot in the Anchorage area with a 70%-30% funding split. The community cannot support a super large high school, because the 600 extra students now overcrowding the Chugiak H.S. are not enough to warrant another high school. Consequently, he is looking for another configuration, which DOE's regulations prohibit. The intent is to let the local voters vote on the bond package. VICE-CHAIRMAN KELLY asked how many schools the $126 million fiscal note assumes would be going to bond election next year. MR. MORGAN said they only looked at the number of students that would qualify for the square footage. TAPE 99-13, SIDE B Number 583 MS. GILLESPIE repeated the school district needs flexibility in how it applies the dollars funded by the Legislature to a local project. MR. MORGAN explained the department looks at the total area in evaluating square footage. The Eagle River-Chugiak area has elementary school capacity for about 600 students. The Mirror Lake middle school has capacity for 400 students. The high school has an overcapacity of 100 students. He asserted they have an overcrowding problem because they put the 6th graders in the middle school. SENATOR PHILLIPS disagreed with Mr. Morgan, stating the high school is way overcapacity and it's more than 100 students. MS. OSSIANDER said the focus should be that the Legislature has control over funding, and the school district believes instructionally a middle school program is better for the 6th graders than a traditional elementary program. In other words, build to meet the instructional needs of the kids. SENATOR WILKEN asked why the fiscal note refers to 150 square feet while the others list 43.75 square feet. Mr. Morgan replied that currently they show no eligibility for additional square footage for 6th graders. If 6th graders are to be secondary students, none of the elementary space would be counted that is currently counted. If no elementary space is counted, these 6th graders would qualify for the full 150 square feet. SENATOR ELTON asked if Juneau, which has the 6-7-8 configuration was built under the existing square footage rules. MR. MORGAN said he didn't know. The current regulations came into effect in early 1996. Prior to that time, the space guidelines were not in regulation. The department took the existing guidelines for elementary, secondary, and K-12 schools for different sized schools with a high, medium and low range. The medium guidelines were put into regulation. VICE-CHAIRMAN KELLY stated the committee would hold SB 95 until Senator Miller returns.