SB 14-EDUCATION FUNDING INCREASE  SENATOR WAGONER, sponsor of SSSB 14, testified that he introduced this bill last year because over the past 12 years, the Kenai Peninsula Borough School District (KPBSD) has cut its budget every year. Without going into particulars, KPBSD determined $4,500 as the minimum amount needed to meet educational requirements. He read a letter from a constituent from his district regarding how badly things are going in his district: I believe it is time to increase school funding. At Kenai Middle School where both my sons will attend school next year, budget cuts have already exceeded acceptable levels. Anticipated cuts for next year will severely limit the ability of teachers and staff to educate our youth. Kenai Middle School administrators have already eliminated shop and art classes. The librarian only works half time. The school counselor spends two thirds of her day as a classroom teacher. There are some classes with 35 students and one teacher. This is at a time when the teachers are responsible for meeting the requirements of the No Child Left Behind (NCLB) act and I mean the teachers. Students and their parents are no longer held responsible for learning. Teachers in schools are now responsible. Next year's anticipated cuts include the loss of Quest, the loss of our librarian, a reduction in the hours worked by the school nurse, and the elimination of more teaching positions. The situation is abysmal. I currently spend 10.5 hours each week volunteering in the public schools. We're cutting school budgets when we need to be increasing them. SENATOR WAGONER continued reading: The current funding levels will destroy public education. I realize that my request will require taxation or at least a reduction of the Permanent Fund Dividend program. It is about time. I do not believe that it is realistic to expect the state of Alaska to pay for my family and me more in Permanent [Fund] Dividend checks than we pay in taxes. We are getting paid to receive state services. The situation is absurd. It is no wonder that we are having trouble with students in our schools. They are learning from the example of the permanent fund dividend program that you can get something for nothing, that life requires no effort. This is not true. This is a horrendous example of public policy gone berserk. Thank you for serving in our Legislature. I realize that this is a difficult time for our state; however, I'm tired of those people whose only request is to cut state spending while sparing their favorite program. I am not involved in most aspects of the state budget so I can't say if further cuts can still be made. But I know because of my involvement in public education that cuts here have been too deep. SENATOR GUESS acknowledged that the Kenai area expressed the needed amount of $4,500 and asked if Senator Wagoner had looked at other districts. SENATOR WAGONER replied that Kenai was probably as bad off if not worse off, than most districts in the state, and that $4,500 was just about a break-even number. SENATOR GUESS said from her analysis there are about four districts that wouldn't make the PERS/TRS cut-off at $4,500. She asked if it was the case in the Kenai that about half the cuts were from PERS/TRS. SENATOR WAGONER said this amount came in last year, prior to the PERS/TRS discussion. SENATOR GUESS asked if this meant that for the Kenai, an additional PERS/TRS amount of $2.2 million was needed. SENATOR WAGONER confirmed this was the case. SENATOR LYDA GREEN mentioned that the Kenai's problems are different from the Mat-Su or other growing districts, because of a declining enrollment. SENATOR WAGONER confirmed there was a declining enrollment and an inability to close or consolidate schools without a major penalty, saying that several things have gone "kinda sideways." [The following action was taken at the end of the meeting: SENATOR GUESS moved to report SSSB 14 out of committee with individual recommendations and attached fiscal note. CHAIR DYSON asked if there was any objection. Seeing none, it was so ordered.]