SB 103-RESIDENTIAL PSYCHIATRIC EDUCATION FUNDING  2:38:33 PM CHAIR MCGUIRE announced the consideration of SSSB 103. SENATOR CATHY GIESSEL, Alaska State Legislature, sponsor of SB 103 explained that the bill relates to the education of students in residential psychiatric treatment centers (RPTCs). She shared a story about a time she participated in a ride along with the Anchorage Police Department and came upon a young man in foster care who needed to be admitted to the NorthStar psychiatric treatment center. She did not know how long he was in treatment, but voiced concern about the time he would miss school and the stress kids experience when they miss school and fall behind. 2:40:30 PM SENATOR GIESSEL stated that the purpose of the bill is to require local school districts to partner with RPTCs to provide on-going education for students. Currently, many districts partner well with RPTCs, such as Fairbanks, however, other areas are lacking. The bill establishes a three-year pilot program that would require collaboration between the district and the treatment center. Senator Giessel referred to a letter of opposition in members' packets from the Anchorage School District. She explained that Senator Gardner had attempted to contact the district to get her questions answered, to no avail. However, shortly after, Senator Gardner received the information she requested. 2:42:11 PM CHAIR MCGUIRE said she liked the bill. She asked whether foundation formula dollars would follow the student to the psychiatric center's program. KARI NORE, Staff Senator Cathy Giessel, Alaska State Legislature, explained that version I provides that the RPTCs will contract with individual school districts to work out how the funding would be formulated. She referred to a copy of NorthStar's contract with the Anchorage School District, which was rejected, to show how a contract might look. MS. NORE said the program would also allow the RPTCs to contract with more than one school district to ensure that the program continually matched up with the neighborhood school. 2:43:57 PM CHAIR MCGUIRE expressed hope that the final report shows that RPTCs are adequately compensation for what they provided. MS. NORE deferred to Evelyn Alsup for more information on that topic. CHAIR MCGUIRE asked why the contract is for three years and why it is a pilot program. SENATOR GIESSEL replied that was part of a negotiation between the school districts and the treatment centers. The idea is that the pilot program will demonstrate success. CHAIR MCGUIRE noted that she is leery of pilot programs and suggested monitoring it annually. 2:46:17 PM SENATOR COGHILL voiced appreciation for the bill. He noted that Fairbanks' RPTC has worked collaboratively with their school district. SENATOR GIESSEL said Anchorage has not seen that level of success. She said there is a need to ensure uniformity in the state. SENATOR COGHILL noted the importance of a student's continuous education. 2:47:29 PM SENATOR MICCICHE thought that if a student were to be in treatment for only a couple of weeks, it would not be very expensive for the school district. SENATOR GIESSEL stated that the contract would address only the time a student is in residential treatment. CHAIR MCGUIRE appreciated the need to continue the connection to the neighborhood school in light of the high rate of mental health issues. 2:49:27 PM MIKE LYONS, Vice President, Specialty Education, Universal Health Services and NorthStar Behavioral Health, testified in support of SB 103. He opined that SB 103 will dramatically improve the educational and treatment services delivered to children residing in residential psychiatric treatment centers (RPTCs). He said RPTCs save lives. He reported that Universal Health Services has attempted to improve the educational service delivery system across Alaska without much progress for the past six years. Last year the House Education Committee appointed a subcommittee to study how educational services were being delivered at RPTCs across Alaska and how RPTCs and school districts could work more collaboratively. He said some progress has been made between the Anchorage School District and NorthStar, but there were many failures and more work needs to be done. He said SB 103 would allow a more seamless, transparent model between the two entities. 2:54:07 PM SENATOR WIELECHOWSKI asked if the employees are from the school districts or from NorthStar. MR. LYONS replied under the proposed model, teachers would work for NorthStar and be required to hold Alaska licenses. SENATOR WIELECHOWSKI asked if they would be entitled to the same benefits as district employees. MR. LYONS explained that employees who work for facilities would receive a compensation package through the facility. SENATOR WIELECHOWSKI inquired if NorthStar is for-profit or non- profit. MR. LYONS said NorthStar is a for-profit organization. SENATOR WIELECHOWSKI inquired if any other for-profit organizations receive funding to educate children in Anchorage or in Alaska. MR. LYONS said he didn't know of any others. He pointed out it is a common practice across the nation for school districts to contract with for-profit and non-profit organizations for educational services. Some examples are for psychiatric and disability needs. 2:56:35 PM SENATOR WIELECHOWSKI said Alaska's Constitution prohibits public money to be used for private education. He asked if this bill would violate the Alaska Constitution. MR. LYONS pointed out that under existing AS 14.03.083, there is a provision that allows contracting for services by a school district. CHAIR MCGUIRE thought the constitution prohibits public money for religious schools. 2:57:42 PM SENATOR MICCICHE clarified that Mr. Lyons is referring to a statute and not the constitution. He asked if the bill were to pass, whether school districts might work harder to deliver their own services. MR. LYONS said they have met numerous times over the past six years with the Anchorage School District and with the Commissioner, but did not meet with success. Even after a subcommittee was formed to study the issue, the problem was not solved. He opined that there needs to be another opportunity, such as this bill, to serve these children. 2:59:32 PM SENATOR MICCICHE thought the bill might be the hammer to get the school districts to take this seriously and serve those students. SENATOR COGHILL clarified that no money shall be paid from public funds for the direct benefit of a religious or other private educational institutions. 3:00:38 PM SENATOR WIELECHOWSKI asked whether any funds will go for profit or if all will go into the classroom. MR. LYONS explained that there are over 21 accountability measures in the bill. One is a transparent budget of revenue and expenses. He stated that 100 percent of the funds will go to educational resources. 3:01:22 PM EVELYN ALSUP, Director of Education, NorthStar Behavioral Health, clarified that version I provides that NorthStar will be open to a yearly audit of their books and funds will only be spent on educational purposes. She pointed out that NorthStar is not an "educational institution" but a "hospital" or "residential treatment facility." Students are patients placed in NorthStar under a doctor's orders and there is 24-hour nursing care. CHAIR MCGUIRE held SB 103 in committee and noted that public testimony would continue at the next hearing.