ALASKA STATE LEGISLATURE
HOUSE EDUCATION STANDING COMMITTEE
February 14, 2022
8:07 a.m.
MEMBERS PRESENT
Representative Harriet Drummond, Co-Chair
Representative Andi Story, Co-Chair
Representative Tiffany Zulkosky
Representative Grier Hopkins
Representative Mike Prax
Representative Mike Cronk
Representative Ronald Gillham
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 10(FIN) AM
"An Act establishing a grant program to provide to essential
workers and laid-off workers the tuition and fees to attend
certain postsecondary institutions."
- HEARD & HELD
HOUSE BILL NO. 259
"An Act relating to use of income of the Alaska permanent fund;
relating to the amount of the permanent fund dividend; relating
to the duties of the commissioner of revenue; relating to
funding for state aid for school districts, the state boarding
school, centralized correspondence study, and transportation of
pupils; and providing for an effective date."
- MOVED HB 259 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 10
SHORT TITLE: FREE/REDUCED TUITION FOR ESSENTIAL WORKER
SPONSOR(s): SENATOR(s) BEGICH
01/22/21 (S) PREFILE RELEASED 1/8/21
01/22/21 (S) READ THE FIRST TIME - REFERRALS
01/22/21 (S) L&C, EDC, FIN
02/08/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/08/21 (S) Moved SB 10 Out of Committee
02/08/21 (S) MINUTE(L&C)
02/10/21 (S) L&C RPT 4DP 1NR
02/10/21 (S) NR: COSTELLO
02/10/21 (S) DP: GRAY-JACKSON, STEVENS, HOLLAND,
REVAK
03/17/21 (S) EDC AT 9:00 AM BUTROVICH 205
03/17/21 (S) Heard & Held
03/17/21 (S) MINUTE(EDC)
03/22/21 (S) EDC AT 9:00 AM BUTROVICH 205
03/22/21 (S) Moved CSSB 10(EDC) Out of Committee
03/22/21 (S) MINUTE(EDC)
03/24/21 (S) EDC RPT CS 1DP 2AM SAME TITLE
03/24/21 (S) AM: HOLLAND, HUGHES
03/24/21 (S) DP: BEGICH
04/08/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/08/21 (S) -- Invited & Public Testimony --
04/16/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/16/21 (S) Heard & Held
04/16/21 (S) MINUTE(FIN)
04/20/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/20/21 (S) <Bill Hearing Rescheduled to
04/21/2021>
04/21/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/21/21 (S) Heard & Held
04/21/21 (S) MINUTE(FIN)
04/27/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/27/21 (S) Moved CSSB 10(FIN) Out of Committee
04/27/21 (S) MINUTE(FIN)
04/28/21 (S) FIN RPT CS 4DP 2DNP SAME TITLE
04/28/21 (S) DP: BISHOP, HOFFMAN, WIELECHOWSKI,
OLSON
04/28/21 (S) DNP: WILSON, VON IMHOF
05/17/21 (S) TRANSMITTED TO (H)
05/17/21 (S) VERSION: CSSB 10(FIN) AM
05/18/21 (H) READ THE FIRST TIME - REFERRALS
05/18/21 (H) EDC, FIN
02/09/22 (H) EDC AT 9:00 AM DAVIS 106
02/09/22 (H) Heard & Held
02/09/22 (H) MINUTE(EDC)
02/14/22 (H) EDC AT 8:00 AM DAVIS 106
BILL: HB 259
SHORT TITLE: PERMANENT FUND DIVIDEND; 25/75 POMV SPLIT
SPONSOR(s): REPRESENTATIVE(s) SPOHNHOLZ
01/18/22 (H) PREFILE RELEASED 1/7/22
01/18/22 (H) READ THE FIRST TIME - REFERRALS
01/18/22 (H) EDC, W&M, FIN
02/04/22 (H) EDC AT 8:00 AM DAVIS 106
02/04/22 (H) Heard & Held
02/04/22 (H) MINUTE(EDC)
02/14/22 (H) EDC AT 8:00 AM DAVIS 106
WITNESS REGISTER
SENATOR TOM BEGICH
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, offered a brief
introduction to CSSB 10(FIN) am.
L?KI TOBIN, Staff
Senator Tom Begich
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed the fiscal note for CSSB 10(FIN)
am on behalf of Senator Begich, prime sponsor.
SANA EFIRD, Executive Director
Alaska Commission on Postsecondary Education
Department of Education and Early Development
Juneau, Alaska
POSITION STATEMENT: Addressed the fiscal note for CSSB 10(FIN)
am.
REPRESENTATIVE IVY SPOHNHOLZ
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, offered a brief overview
of HB 259.
ACTION NARRATIVE
8:07:28 AM
CO-CHAIR ANDI STORY called the House Education Standing
Committee meeting to order at 8:07 a.m. Representatives
Drummond, Zulkosky, Hopkins, and Story were present at the call
to order. Representatives Gillham, Cronk, and Prax arrived as
the meeting was in progress.
SB 10-FREE/REDUCED TUITION FOR ESSENTIAL WORKER
8:08:53 AM
CO-CHAIR STORY announced that the first order of business would
be CS FOR SENATE BILL NO. 10(FIN) am, "An Act establishing a
grant program to provide to essential workers and laid-off
workers the tuition and fees to attend certain postsecondary
institutions."
8:09:32 AM
SENATOR TOM BEGICH, Alaska State Legislature, as prime sponsor,
offered a brief introduction to CSSB 10(FIN) am.
8:10:35 AM
L?KI TOBIN, Staff, Senator Tom Begich, Alaska State Legislature,
staff for Senator Begich, prime sponsor, reviewed the fiscal
note for CSSB 10(FIN) am and noted the program's operating
budget will be attributed to the federal COVID relief funds.
8:12:13 AM
SANA EFIRD, Executive Director, Alaska Commission on
Postsecondary Education, Department of Education and Early
Development, observed the original fiscal note pointed to
general funds but this would change. To administer the grant
program, Alaska Commission on Postsecondary Education (ACPE)
assumed it would need one and a half full-time equivalent
financial aid operations analysts to oversee and process the
awards, at $187,500 for the first year. After initial set-up,
for the next two years, only one half-time position is needed at
$63,200. This cost does not represent new positions, but a
realignment of duties to administer the program. She pointed
out the attached companion fiscal note addresses funding for the
Alaska Student Loan Corporation. The corporation's positions
are currently funded by loan corporation receipts, but if the
positions assume new duties associated with the grant program,
the funding source switches to the funds supporting the grant
program. Ms. Efird said the start-up of the grant program would
use the current student aid application portal, needing a one-
time cost to retool the portal, plus an additional annual
maintenance cost for the next two years, of $10,000.
Additionally, the fiscal note adds $6,000 for legal costs and
$2,500,000 per fiscal year for grants.
8:16:54 AM
CO-CHAIR DRUMMOND moved to adopt Amendment 1 to CSSB 10(FIN)am,
labeled 32-LS0127\N.A.1, Marx, 2/10/22, which read as follows:
Page 1, line 10:
Delete "2021"
Insert "2022"
Page 4, line 11:
Delete "2025"
Insert "2026"
Page 4, line 12:
Delete "2026"
Insert "2027"
8:17:09 AM
REPRESENTATIVE HOPKINS objected for the purpose of discussion.
CO-CHAIR DRUMMOND explained the amendment updates the deadlines
contained in CSSB 10(FIN)am, as the original dates in the
legislation had passed.
8:18:00 AM
REPRESENTATIVE HOPKINS withdrew his objection. There being no
further objection, Amendment 1 was adopted.
8:18:35 AM
CO-CHAIR STORY announced that CSSB 10(FIN), as amended, was held
over.
HB 259-PERMANENT FUND DIVIDEND; 25/75 POMV SPLIT
8:19:03 AM
CO-CHAIR STORY announced that the final order of business would
be HOUSE BILL NO. 259, "An Act relating to use of income of the
Alaska permanent fund; relating to the amount of the permanent
fund dividend; relating to the duties of the commissioner of
revenue; relating to funding for state aid for school districts,
the state boarding school, centralized correspondence study, and
transportation of pupils; and providing for an effective date."
8:19:44 AM
REPRESENTATIVE IVY SPOHNHOLZ, Alaska State Legislature, as prime
sponsor, offered a brief overview of the two problems HB 259
seeks to solve: underfunding of education and the fiscal
instability of the state.
8:20:50 AM
CO-CHAIR STORY requested any further comments on HB 259 before
going forward with a motion to move the bill from committee.
8:21:03 AM
REPRESENTATIVE CRONK said he is not sure the legislation belongs
in the House Education Standing Committee, as this is a "huge
budget bill" to determine how to spend the percent of market
value (POMV) draw. He went on to say there is a continual
request for funding for education, but no one has an answer why
more money is needed. He asked the question, "How does more
money relate to better education?" He would like to see
everyone join the discussion, namely the teacher's union and the
school districts. Representative Cronk argued that "until we are
ready to have the hard conversations together," he is not ready
to support increased spending for education. Plus, he said this
legislation is bigger than just funding for education, as it
determines whether a permanent fund dividend (PFD) will be paid.
8:22:52 AM
REPRESENTATIVE ZULKOSKY opined the legislation would be a good
conversation starter aimed at efforts to find a nexus between
Alaska's fiscal issues and how those fiscal issues impact
various essential services, notably education.
8:23:33 AM
CO-CHAIR STORY agreed that with another POMV split, these are
very important conversations to have going to the House Finance
Committee. She said a critical piece of the proposed
legislation frees fixed expenses to pay for gaps in public
services. She said she was pleased with the priority of
essential services to education proposed under HB 259. In
example, she mentioned pupil transportation has not had an
increase in funding to districts in many years, instead, it
takes from the general fund. As inflation was up 10 percent
over the last decade, she said a 4 percent increase in funding
for education in the first year was realistic. She added that
other essential public services would still be covered along
with, in her estimation, a substantial PFD.
8:25:52 AM
CO-CHAIR DRUMMOND noted a large percentage of schoolboard
experience among members of the committee, and with this
experience comes the knowledge that schoolboards struggle every
year with cuts to their budgets. She sees nothing wrong with
the House Education Standing Committee dealing with a funding
bill. She stated her support of HB 259.
8:26:55 AM
REPRESENTATIVE GILLHAM agreed with Representative Cronk. He
said that his biggest issue is any change to the PFD should be
put to a public vote.
8:27:26 AM
REPRESENTATIVE SPOHNHOLZ explained HB 259 was referred to the
House Education Standing Committee because it creates an
education funding stream for public education. She said while
costs have gone up, Alaska now spends $500 less per child on
education than in fiscal year 2008. Nationwide, students in
Alaska show a lower ranking, but comparing student performance
metrics, she observed Alaska's ranking has not fallen, but other
states' rankings have risen due to strategic investment and
innovations those states have made in educational programs. If
Alaska creates "stable and growing funding for education," she
said the state could start making investments and innovations in
proven programs.
REPRESENTATIVE SPOHNHOLZ said HB 259 will be forwarded to the
House Special Committee on Ways and Means and to the House
Finance Committee to look at the fiscal impacts, including
discussion of the PFD formula.
8:29:41 AM
CO-CHAIR DRUMMOND moved to report HB 259 out of committee with
individual recommendations and the accompanying fiscal notes.
8:29:54 AM
REPRESENTATIVE CRONK objected.
8:29:54 AM
A roll call vote was taken. Representatives Zulkosky, Hopkins,
Drummond, and Story voted in favor of the motion to report HB
259 out of committee with individual recommendations and the
accompanying fiscal notes. Representatives Cronk, Gillham, and
Prax voted against it. Therefore, HB 259 was reported out of
the House Education Standing Committee by a vote of 4-3.
8:30:58 AM
The committee took an at-ease from 8:31 a.m. to 8:35 a.m.
8:35:05 AM
CO-CHAIR STORY announced the amendment deadline for upcoming
bills.
8:36:07 AM
ADJOURNMENT
There being no further business before the committee, the House
Education Standing Committee meeting was adjourned at 8:36 a.m.