ALASKA STATE LEGISLATURE                                                                                  
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                        February 2, 2024                                                                                        
                           8:00 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Jamie Allard, Co-Chair                                                                                           
Representative Justin Ruffridge, Co-Chair                                                                                       
Representative Mike Prax                                                                                                        
Representative CJ McCormick                                                                                                     
Representative Tom McKay                                                                                                        
Representative Rebecca Himschoot                                                                                                
Representative Andi Story                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Dan Ortiz                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S): DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                  
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
SENATE BILL NO. 13                                                                                                              
"An Act relating to costs of and charges for textbooks and other                                                                
course materials required for University of Alaska courses; and                                                                 
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  13                                                                                                                  
SHORT TITLE: UNIVERSITY: TEXTBOOKS/MATERIALS COST                                                                               
SPONSOR(s): SENATOR(s) MYERS                                                                                                    
                                                                                                                                
01/18/23       (S)       PREFILE RELEASED 1/9/23                                                                                
01/18/23       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/23       (S)       EDC                                                                                                    
03/13/23       (S)       EDC AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
03/13/23       (S)       Heard & Held                                                                                           
03/13/23       (S)       MINUTE(EDC)                                                                                            
03/20/23       (S)       EDC AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
03/20/23       (S)       Moved SB 13 Out of Committee                                                                           
03/20/23       (S)       MINUTE(EDC)                                                                                            
03/22/23       (S)       EDC RPT 4DP                                                                                            
03/22/23       (S)       DP: TOBIN, GRAY-JACKSON, STEVENS, KIEHL                                                                
05/05/23       (S)       TRANSMITTED TO (H)                                                                                     
05/05/23       (S)       VERSION: SB  13                                                                                        
05/08/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/08/23       (H)       EDC                                                                                                    
02/02/24       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DEENA BISHOP, Commissioner                                                                                                      
Department of Education and Early Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Co-presented a PowerPoint, titled                                                                        
"Education Financial Deep Dive."                                                                                                
                                                                                                                                
KAREN MORRISON, Director                                                                                                        
School Finance and Support Services                                                                                             
Department of Education and Early Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Co-presented a PowerPoint, titled                                                                        
"Education Financial Deep Dive."                                                                                                
                                                                                                                                
SENATOR ROBERT MYERS                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, presented SB 13.                                                                       
                                                                                                                                
DAWSON MANN, Staff                                                                                                              
Senator Robert Myers                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Gave the sectional analysis for SB 13, on                                                                
behalf of Senator Myers, prime sponsor.                                                                                         
                                                                                                                                
SARA PERMAN, State Relations Manager                                                                                            
Office of Government Relations                                                                                                  
University of Alaska System                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the hearing on SB                                                              
13.                                                                                                                             
                                                                                                                                
BENJAMIN SHIER, Chief Information Technology Officer                                                                            
University of Alaska System                                                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the hearing on SB                                                             
13.                                                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:00:01 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  JAMIE  ALLARD  called   the  House  Education  Standing                                                             
Committee meeting  to order at  8:00 a.m.   Representatives Prax,                                                               
McKay, Himschoot, and  Allard were present at the  call to order.                                                               
Representatives McCormick,  Story, and  Ruffridge arrived  as the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
The committee took an at-ease from 8:00 a.m. to 8:02 a.m.                                                                       
                                                                                                                                
^PRESENTATION(S): Department of Education and Early Development                                                                 
 PRESENTATION(S): Department of Education and Early Development                                                               
                                                                                                                                
8:02:28 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD announced that the  first order of business would                                                               
be the presentation, titled "Education Financial Deep Dive."                                                                    
                                                                                                                                
8:03:57 AM                                                                                                                    
                                                                                                                                
DEENA  BISHOP, Commissioner,  Department of  Education and  Early                                                               
Development  (DEED), began  a PowerPoint  presentation, [hardcopy                                                               
included in  the committee  packet], titled  "Education Financial                                                               
Deep Dive."   She noted that  the request was made  to review all                                                               
accounts.   She  began on  slide 2,  titled "Mission,  Vision and                                                               
Purpose,"  and  focused  on  "Vision,"   which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     "All  students  will  succeed in  their  education  and                                                                    
     work,  shape   worthwhile  and  satisfying   lives  for                                                                    
     themselves, exemplify  the best values of  society, and                                                                    
     be effective in improving  the character and quality of                                                                    
     the world about them  Alaska Statute 14.03.015."                                                                           
                                                                                                                                
8:05:28 AM                                                                                                                    
                                                                                                                                
COMMISSIONER BISHOP moved to slide  3, titled "Alaska's Education                                                               
Challenge,"   which  read   as   follows  [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Five Shared Strategic Priorities:                                                                                        
                                                                                                                                
     1. Support all students to read at grade level by the                                                                      
     end of third grade.                                                                                                        
                                                                                                                                
     2. Increase career, technical, and culturally relevant                                                                     
     education to meet student and workforce needs.                                                                             
                                                                                                                                
       3. Close the achievement gap by ensuring equitable                                                                       
     educational rigor and resources.                                                                                           
                                                                                                                                
      4. Prepare, attract, and retain effective education                                                                       
     professionals.                                                                                                             
                                                                                                                                
        5. Improve the safety and well-being of students                                                                        
    through    school     partnerships    with    families,                                                                     
     communities, and tribes.                                                                                                   
                                                                                                                                
8:06:04 AM                                                                                                                    
                                                                                                                                
COMMISSIONER  BISHOP moved  to slide  4,  titled "Agenda,"  which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     Funding Sources to School Districts                                                                                        
                                                                                                                                
      • Federal Grant Awards                                                                                                    
      • State Grant Awards                                                                                                      
      • State Aid to Schools                                                                                                    
      • Local Aid to Schools                                                                                                    
      • FY2024 Budget Unreserved Fund Balance                                                                                   
                                                                                                                                
COMMISSIONER  BISHOP welcomed  questions during  the presentation                                                               
and  added  there are  three  pieces  of backup  information  for                                                               
research purposes,  and that  the information  is as  detailed as                                                               
possible as was requested by Co-Chair Allard.                                                                                   
                                                                                                                                
8:07:37 AM                                                                                                                    
                                                                                                                                
KAREN MORRISON,  Director, School  Finance and  Support Services,                                                               
Department  of Education  and  Early  Development, continued  the                                                               
PowerPoint presentation.   She pointed out that enclosure  1 is a                                                               
spreadsheet, and she  moved to slide 5,  titled "FY2024 Projected                                                               
K-12  School   District  Revenue  Sources  $2,696,944.3."     She                                                               
explained that  the amount  is a projected  combined total.   She                                                               
said that  50 percent comes  from state  grant and state  aid, 30                                                               
percent  comes  from  budgeted  local  funding  sources,  and  13                                                               
percent is received through federal grant funds.                                                                                
                                                                                                                                
8:09:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD asked which districts receive private grants.                                                                   
                                                                                                                                
MS. MORRISON replied  that that topic would  be addressed further                                                               
down in  the slides.  She  continued to slide 6,  titled "Federal                                                               
Grant Awards  to K-12  School Districts,"  which read  as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Every Student Succeeds Act (ESSA)                                                                                        
     • Title I, Part A  Improving Basic Programs Operated by                                                                    
     Local  Educational Agencies**  $68,848.5  awards to  51                                                                    
     districts                                                                                                                  
                                                                                                                                
        Title  I, Part  C  Education  of Migratory  Children                                                                    
     $28,875.5 to 41 districts                                                                                                  
                                                                                                                                
     • Title 1 (Improving  Education for the Disadvantaged &                                                                    
     Struggling   Students   (Competitive)   $458.9   to   4                                                                    
     districts                                                                                                                  
                                                                                                                                
     • Title I, Part  D Prevention and Intervention Programs                                                                    
     for Children  and Youth Who are  Neglected, Delinquent,                                                                    
     or At Risk $596.3 to 6 districts                                                                                           
                                                                                                                                
     • Title  II, Part A Preparing,  Training and Recruiting                                                                    
     High-Quality  Teachers,  Principals, and  Other  School                                                                    
     Leaders** $14,275.6 to 53 districts                                                                                        
                                                                                                                                
     **Federal  grant program  which allows  carryforward of                                                                    
     unused awards.                                                                                                             
                                                                                                                                
8:11:43 AM                                                                                                                    
                                                                                                                                
MS. MORRISON  moved to slide  7, titled "Federal Grant  Awards to                                                               
K-12 School  Districts," which she  stated was a  continuation of                                                               
the  Every Student  Succeeds Act  (ESSA), which  read as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Every Student Succeeds Act (ESSA) (Continued)                                                                            
     • Title  III, Part  A Language Instruction  for English                                                                    
     Learners  and  Immigrant   Students**  $2,104.0  to  13                                                                    
     districts                                                                                                                  
                                                                                                                                
     •  Title  IV,  Part  A  Student  Support  and  Academic                                                                    
     Enrichment (SSAE) $9,858.0 to 49 districts                                                                                 
                                                                                                                                
     •  Title IV,  Part  B 21st  Century Community  Learning                                                                    
     Centers** $5,882.1 to 8 districts                                                                                          
                                                                                                                                
     • School Improvement 1003a $4,512.0 to 31 districts                                                                        
                                                                                                                                
     • McKinney-Vento Homeless** $357.6 to 22 districts                                                                         
                                                                                                                                
     • Migrant Literacy $310.6 to 36 districts                                                                                  
                                                                                                                                
     **Federal  grant program  which allows  carryforward of                                                                    
     unused awards.                                                                                                             
                                                                                                                                
8:12:49 AM                                                                                                                    
                                                                                                                                
MS. MORRISON  moved to slide  8, titled "Federal Grant  Awards to                                                               
K-12 School  Districts," featuring Individuals  with Disabilities                                                               
Education  (IDEA), which  read as  follows [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Individual with Disabilities Education (IDEA)                                                                            
     • Title VIB** $53,868.7 to 54 districts                                                                                    
     • Disabled 619, Preschool** $1,531.7 to 53 districts                                                                       
     •   Special  Education   Discretionary   $544.0  to   4                                                                    
     districts                                                                                                                  
     • Disabled 619 Discretionary $60.0 to 2 districts                                                                          
                                                                                                                                
     Other Federal Grants                                                                                                     
     •  Carl Perkins  Career and  Technical Education  (CTE)                                                                    
     $4,758.3 to 43 districts                                                                                                   
     •  Comprehensive  Literacy   State  Development  (CLSD)                                                                    
     $15,081.7 to 28 districts                                                                                                  
     • Alaska Trauma  Recovery in Schools (TRIS)  $80.5 to 1                                                                    
     district                                                                                                                   
                                                                                                                                
     **Federal  grant program  which allows  carryforward of                                                                    
     unused awards.                                                                                                             
                                                                                                                                
8:13:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY sought confirmation that the federal grants                                                                
are awarded to the districts to help supplement programs and the                                                                
intent is to meet children's needs.                                                                                             
                                                                                                                                
COMMISSIONER BISHOP confirmed that was correct.                                                                                 
                                                                                                                                
8:14:48 AM                                                                                                                    
                                                                                                                                
MS. MORRISON proceeded  to slide 9, titled  "Federal Grant Awards                                                               
to  K-12  School  Districts," which  read  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Other Federal Grants Continued                                                                                           
     • Project  Aware (Advancing Wellness and  Resiliency in                                                                    
     Education) $1,420.7 to 3 districts                                                                                         
                                                                                                                                
     • Stronger Connections $4,325.7 to 9 districts                                                                             
                                                                                                                                
     •   Child  Nutrition   Programs-  Actual   Disbursement                                                                    
     through  October  2023  $27,580.7 to  46  participating                                                                    
     districts                                                                                                                  
                                                                                                                                
     • Institute  of Museum and  Library Services $2.5  to 2                                                                    
     districts                                                                                                                  
                                                                                                                                
     • National Endowment for the Arts $6.5 to 1 district                                                                       
                                                                                                                                
8:17:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY brought  up  child  nutrition programs  and                                                               
asked  whether   the  federal  government  had   increased  their                                                               
contributions.                                                                                                                  
                                                                                                                                
MS.  MORRISON said  she would  get back  to Representative  Story                                                               
with an answer at a later date.                                                                                                 
                                                                                                                                
8:18:41 AM                                                                                                                    
                                                                                                                                
MS. MORRISON moved  to slide 10, titled "Federal  Grant Awards to                                                               
K-12 School  Districts," which focused on  expired COVID-19 grant                                                               
awards.    She  summarized  the  slide,  which  read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     COVID-19 Grant Awards that Expired 9/30/2023                                                                             
     •  Elementary  and  Secondary School  Emergency  Relief                                                                    
     Fund  CRRSA  Act $1,259.7  to  12  districts    Expired                                                                    
     9/30/2023                                                                                                                  
                                                                                                                                
     •  Elementary  and  Secondary School  Emergency  Relief                                                                    
     Fund  CRRSA  Act  Reserve  $296.8  to  13  districts                                                                       
     Expired 9/30/2023                                                                                                          
                                                                                                                                
     •  Elementary  and  Secondary School  Emergency  Relief                                                                    
     Fund   American   Rescue   Plan   -   Individual   with                                                                    
     Disabilities Education  Act $3,142.3 to 15  districts                                                                      
     Expired 9/30/2023                                                                                                          
                                                                                                                                
     •  Elementary  and  Secondary School  Emergency  Relief                                                                    
     Fund   American   Rescue   Plan   -   Individual   with                                                                    
     Disabilities  Education  Act   Preschool  $280.3  to  9                                                                    
     districts  Expired 9/30/2023                                                                                               
                                                                                                                                
8:20:09 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD asked if there were any funds left over.                                                                        
                                                                                                                                
MS. MORRISON replied that she would  follow up.  She proceeded to                                                               
slide   11,  titled   "Federal  Grant   Awards  to   K-12  School                                                               
Districts," which  focused on current COVID-19  Grant Awards, and                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     Current COVID-19 Grant Awards                                                                                            
                                                                                                                                
     •  Elementary  and  Secondary School  Emergency  Relief                                                                    
     Fund American Rescue Plan $109,670.2 to 43 districts                                                                       
                                                                                                                                
     •  American   Rescue  Plan  -  Homeless   $193.4  to  5                                                                    
     districts                                                                                                                  
                                                                                                                                
     •  American Rescue  Plan  - Homeless  II  $781.5 to  14                                                                    
     districts                                                                                                                  
                                                                                                                                
     •  American Rescue  Plan -  After School  (Competitive)                                                                    
     $444.3 to 2 districts                                                                                                      
                                                                                                                                
     • American  Rescue Plan - Summer  Program (Competitive)                                                                    
     $1,732.4 to 8 districts                                                                                                    
                                                                                                                                
8:21:29 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD asked whether there were any improvements in the                                                                
education system with all the additional funds.                                                                                 
                                                                                                                                
COMMISSIONER BISHOP replied that the department can provide                                                                     
those data in the spring.                                                                                                       
                                                                                                                                
CO-CHAIR ALLARD asked whether the reading data would come                                                                       
through with the Alaska Reads Act                                                                                               
                                                                                                                                
COMMISSIONER BISHOP replied yes.                                                                                                
                                                                                                                                
8:22:10 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  RUFFRIDGE brought  up  the subject  of improvement  and                                                               
whether there  was any data  that would be available  before this                                                               
spring.                                                                                                                         
                                                                                                                                
COMMISSIONER  BISHOP replied  the  department  has mid-year  data                                                               
from early  learning assessments, which  she related would  be on                                                               
DEED's website shortly.                                                                                                         
                                                                                                                                
8:23:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY asked what funds helped buy computers.                                                                     
                                                                                                                                
COMMISSIONER  BISHOP said  the funds  were directed  to districts                                                               
and  they  determine   their  programming.    She   added  it  is                                                               
determined at the local level, not the state level.                                                                             
                                                                                                                                
8:24:31 AM                                                                                                                    
                                                                                                                                
MS. MORRISON continued on slide  12, titled "Private Grant Awards                                                               
to  K-12  School  Districts," which  read  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
       • Alaska State Council on the Arts Private Grant,                                                                        
     Rasmussen Foundation $3.2 to 1 district                                                                                    
                                                                                                                                
       • Alaska State Council on the Arts Private Grant,                                                                        
       Margaret A Cargill Foundation Private Grant, MACF                                                                        
     $69.8 to 11 districts                                                                                                      
                                                                                                                                
MR  MORRISON  proceeded to  slide  13,  titled "Additional  State                                                               
Funded  Grants  to  School Districts,"  featuring  six  different                                                               
grant  awards,  which  read   as  follows  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
        • Alaska State Council of the Arts (General Fund                                                                        
     Match) $18.5 to 9 districts                                                                                                
                                                                                                                                
     • Pre- K Grants $3,017.1 to 9 districts                                                                                    
                                                                                                                                
     • Alaska Reads Act $2,999.9 to 7 districts                                                                                 
                                                                                                                                
     • Youth In Detention $1,100.0 to 6 districts                                                                               
                                                                                                                                
     • Alternative Schools $302.9 to 9 districts                                                                                
                                                                                                                                
     • Career and Technical Education CTE Programs of Study                                                                     
     (CTEPS) Grants $925.0 to 13 districts 13                                                                                   
                                                                                                                                
     $ in thousands                                                                                                             
                                                                                                                                
8:26:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY drew attention  to the third point regarding                                                               
the Alaska Reads Act, she asked  whether the amount was the Pre-K                                                               
money and to what districts.                                                                                                    
                                                                                                                                
COMMISSIONER  BISHOP offered  her belief  it was  in regard  to a                                                               
competitive grant.                                                                                                              
                                                                                                                                
REPRESENTATIVE STORY sought clarity that  it is not the districts                                                               
that were rated as needing the most help in reading.                                                                            
                                                                                                                                
COMMISSIONER  BISHOP replied  no, they  were specifically  grants                                                               
that districts applied for to do special programs.                                                                              
                                                                                                                                
8:27:23 AM                                                                                                                    
                                                                                                                                
MS. MORRISON continued  on slide 14, titled  "State Funded Grants                                                               
to   School  Districts,"   which   read   as  follows   [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     • Suicide Prevention $235.8 to 8 districts                                                                                 
                                                                                                                                
     • Broadband Access Grant $6,221.7 to 25 districts                                                                          
                                                                                                                                
         • Residential Schools projected $9,190.2 to 7                                                                          
     districts                                                                                                                  
                                                                                                                                
     $ in thousands                                                                                                             
                                                                                                                                
8:28:09 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD asked whether there  was an increase in funds for                                                               
the suicide prevention grant during the pandemic.                                                                               
                                                                                                                                
MS.  MORRISON replied  that she  would  provide the  answer at  a                                                               
later date.                                                                                                                     
                                                                                                                                
8:28:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCORMICK  asked whether  the department  has been                                                               
"behind it  all" in  paying out state-funded  grants and,  if so,                                                               
whether there  is anything the body  can do to help  ensure those                                                               
payments are made timely.                                                                                                       
                                                                                                                                
MS. MORRISON  replied that she  is not on  the grant side  of the                                                               
house, but she would follow up  and provide the answer at a later                                                               
date.                                                                                                                           
                                                                                                                                
8:29:19 AM                                                                                                                    
                                                                                                                                
MS. MORRISON moved to slide 15,  titled "K-12 State Aid to School                                                               
Districts  Based on  Fall 2023  OASIS Data,"  that featured  five                                                               
appropriations,  which  read  as  follows  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     • Pupil Transportation $70,840.0 to 46 districts *                                                                         
                                                                                                                                
     • Quality Schools $4,127.1*                                                                                                
                                                                                                                                
     • Dividend Raffle $499.7*                                                                                                  
                                                                                                                                
       Onetime Funding $87,443.0                                                                                                
                                                                                                                                
          • Base Student Allocation / Foundation Award                                                                          
     $1,150,514.5*                                                                                                              
                                                                                                                                
      *Preliminary numbers; 30-day district comment period                                                                      
     ends February 3, 2024                                                                                                      
                                                                                                                                
     $ in thousands                                                                                                             
                                                                                                                                
8:30:54 AM                                                                                                                    
                                                                                                                                
MS. MORRISON moved to slide  16, titled "FY2024 Local Revenues in                                                               
School Districts' Budgets."  She  said the following are budgeted                                                               
numbers,  not awards,  submitted  to  DEED.   The  slide read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
    •   City/Borough   Appropriation   $530,070.4   to   32                                                                     
     districts                                                                                                                  
                                                                                                                                
     • In-Kind Services $20,292.2 to 14 districts                                                                               
                                                                                                                                
     • Earnings on Investments $5,949.7 to 39 districts                                                                         
                                                                                                                                
     • Other Local Revenue $9,403.1 to 47 districts                                                                             
                                                                                                                                
     • Tuition from Students $235.0 to 3 districts                                                                              
                                                                                                                                
     • Tuition from Districts $530.0 to 2 districts                                                                             
                                                                                                                                
     $ in thousands                                                                                                             
                                                                                                                                
8:32:22 AM                                                                                                                    
                                                                                                                                
MS.  MORRISON  concluded  on  slide   17,  titled  "FY2024  Local                                                               
Revenues  in School  Districts' Budgets,"  which read  as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     • E-Rate Funding $95,493.0 to 53 districts                                                                                 
                                                                                                                                
     • Federal Revenue $129,143.8 to 44 districts                                                                               
                                                                                                                                
     • Transfers In $5,139.4 to 8 districts                                                                                     
                                                                                                                                
      • FY2024 Budgeted Unreserved Fund Balance $200,037.7                                                                      
     in 44 districts                                                                                                            
                                                                                                                                
     $ in thousands                                                                                                             
                                                                                                                                
8:33:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX   expressed  curiosity  regarding   how  the                                                               
unreserved fund balance is sorted.                                                                                              
                                                                                                                                
COMMISSIONER  BISHOP  responded that  the  money  is utilized  to                                                               
provide programs.  She added  it is the districts' budgeted money                                                               
they are taking from their savings to create a balanced budget.                                                                 
                                                                                                                                
REPRESENTATIVE  PRAX asked  whether it  is fair  to say  that the                                                               
unreserved fund  balance has nothing  to do with the  earnings on                                                               
investments.                                                                                                                    
                                                                                                                                
MS. MORRISON confirmed that is correct.                                                                                         
                                                                                                                                
REPRESENTATIVE PRAX asked whether there  is a way to identify how                                                               
much the total investments are by district.                                                                                     
                                                                                                                                
MS. MORRISON said the requirement  for the budget submittal is to                                                               
report   earnings  on   investment,  but   DEED  does   not  have                                                               
information on what the sources of the earnings are.                                                                            
                                                                                                                                
8:36:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  asked Commissioner Bishop how  she used                                                               
the COVID-19 funds when she was a superintendent in Anchorage                                                                   
                                                                                                                                
COMMISSIONER BISHOP shared a general  sense of how the funds were                                                               
utilized,   which   included    additional   staffing,   personal                                                               
protective   equipment  (PPE),   computers,  full   scale  summer                                                               
schools, and at times, food services.                                                                                           
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  asked what Commissioner Bishop  kept in                                                               
the fund balance.                                                                                                               
                                                                                                                                
CO-CHAIR ALLARD  reminded the committee that  Commissioner Bishop                                                               
is "our commissioner,"  and opined that her speaking  of her time                                                               
as a superintendent may not be relevant to this meeting.                                                                        
                                                                                                                                
COMMISSIONER BISHOP  confirmed she would  just speak to  the city                                                               
ordinances  and board  policy.    She said  board  policy in  the                                                               
Anchorage  School  District  (ASD)  is   to  have  an  8  percent                                                               
unreserved balance.                                                                                                             
                                                                                                                                
8:39:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT referred to  the 10 percent fund balance                                                               
that was suspended through 2025  and asked how many districts are                                                               
in excess of the 10 percent.                                                                                                    
                                                                                                                                
COMMISSIONER BISHOP  said the department provided  a fund balance                                                               
report  last December  and will  have another  in February.   She                                                               
added that  the balance  now can  go over 10  percent.   She said                                                               
DEED  does not  collect monthly  fund balance  reports, they  are                                                               
collected at the local level.                                                                                                   
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT  asked  about the  general  purpose  of                                                               
federal funding.                                                                                                                
                                                                                                                                
COMMISSIONER BISHOP replied that there  was a report in the 1960s                                                               
that demonstrated  that students  have learning levels  that many                                                               
times  depend on  where the  students  start, as  some kids  show                                                               
growth  in  school but  some  start  at  different levels.    The                                                               
federal  government then  tried  to provide  funds  to states  to                                                               
equalize the resources for students, she said.                                                                                  
                                                                                                                                
8:42:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT  asked for  an  example  of a  district                                                               
making an investment.                                                                                                           
                                                                                                                                
MS. MORRISON said it could  be a savings account earning interest                                                               
or certificate  of deposit  (CD).   She added  it could  be money                                                               
that is not needed at that very moment.                                                                                         
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  asked for confirmation that  if federal                                                               
money came  in, and a district  put it into a  six-month CD, 5the                                                               
district could increase  the amount it received, and  then in six                                                               
months it would have that much more.                                                                                            
                                                                                                                                
MS. MORRISON replied that is not  correct.  Grants are based on a                                                               
reimbursement system so "you" must have the actual expenditures.                                                                
                                                                                                                                
COMMISSIONER BISHOP  added that  aside from federal  grant funds,                                                               
other funds could be invested.                                                                                                  
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  brought up  the Alaska Reads  Act grant                                                               
and opportunity  funds.   She asked if  all seven  districts took                                                               
advantage of that.                                                                                                              
                                                                                                                                
COMMISSIONER  BISHOP said  they  can provide  information on  the                                                               
districts that receive a preschool grant outside the Act.                                                                       
                                                                                                                                
8:46:18 AM                                                                                                                    
                                                                                                                                
MS. MORRISON  added that it  is all on the  spreadsheet [included                                                               
in the committee packet].                                                                                                       
                                                                                                                                
8:46:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX sought more  information on the reserve funds                                                               
and the earnings on investment.                                                                                                 
                                                                                                                                
COMMISSIONER BISHOP said  many of the funds could  have been from                                                               
local contribution and the state foundation formula.                                                                            
                                                                                                                                
REPRESENTATIVE  PRAX suggested  to "dig  into this  more" and  he                                                               
noted  that at  least half  comes out  of the  state budget.   He                                                               
opined there may be a more  financially efficient way to meet the                                                               
need.                                                                                                                           
                                                                                                                                
8:49:47 AM                                                                                                                    
                                                                                                                                
CO-CHAIR RUFFRIDGE  referred to the spreadsheet  under the column                                                               
labeled "budget unrestricted  fund balance" on line  3 and sought                                                               
more understanding of the line item.                                                                                            
                                                                                                                                
8:51:33 AM                                                                                                                    
                                                                                                                                
MS. MORRISON clarified  that fund balance is a  measure of equity                                                               
between revenues and expenditures  and not necessarily related to                                                               
a savings account.  It is past funds that created this balance.                                                                 
                                                                                                                                
8:55:11 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  RUFFRIDGE  expressed  his confusion  of  fund  balances                                                               
being  a   mixture  of  dollars   which,  over  time,   may  have                                                               
accumulated but are  now needed to balance the budget.   He asked                                                               
for help to "put those things together."                                                                                        
                                                                                                                                
MS.  MORRISON acknowledged  that school  finance is  complicated.                                                               
She  clarified that  they are  only talking  about the  operating                                                               
budget.   She gave  a brief  explanation of  how the  ending fund                                                               
balance is calculated.                                                                                                          
                                                                                                                                
CO-CHAIR  RUFFRIDGE  offered an  example  of  the ASD  budget  of                                                               
unreserved funds.   He asked  whether it was a  correct statement                                                               
that  ASD   utilized  "ninety  some"   million  dollars   of  its                                                               
unreserved funds in its 2024 budget to create a balanced budget.                                                                
                                                                                                                                
COMMISSIONER  BISHOP clarified  that  districts  pool their  fund                                                               
balance, but ASD did not use $98 million to make its budget.                                                                    
                                                                                                                                
8:59:26 AM                                                                                                                    
                                                                                                                                
CO-CHAIR RUFFRIDGE  asked for  clarity that  the $200  million is                                                               
just money that is unreserved and not being used.                                                                               
                                                                                                                                
MS. MORRISON said DEED could  provide the beginning fund balances                                                               
and the ending per the budgets to give a perspective.                                                                           
                                                                                                                                
CO-CHAIR  RUFFRIDGE said  he did  not see  the number  referenced                                                               
regarding a starting balance on his spreadsheet.                                                                                
                                                                                                                                
MS. MORRISON said it may be  helpful to have a comparison for the                                                               
actual balance at the end of  fiscal year 2023 (FY 23) that comes                                                               
from  the  audited   financials.    She  noted   these  would  be                                                               
projections.                                                                                                                    
                                                                                                                                
COMMISSIONER BISHOP  added that the  budget is a plan  to utilize                                                               
funds, so those  audited numbers would reflect  what was actually                                                               
utilized.                                                                                                                       
                                                                                                                                
9:03:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCKAY requested  to see a new pencil  chart of the                                                               
last 10  years that  would show  the total  amount of  money that                                                               
went to  education from  all five  sources and  divide it  by the                                                               
average daily membership (ADM) for each of those years.                                                                         
                                                                                                                                
9:05:23 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  RUFFRIDGE   expressed  that  he  is   still  trying  to                                                               
understand the unreserved  fund balance and focused  on Kenai for                                                               
an example on the spreadsheet.                                                                                                  
                                                                                                                                
MS. MORRISON replied  that the 172.5 million is a  total of every                                                               
column  in the  spreadsheet and  the unreserved  fund balance  is                                                               
included.                                                                                                                       
                                                                                                                                
CO-CHAIR RUFFRIDGE  said he  could do the  quick math,  but still                                                               
tried to come to grips with what was being budgeted.                                                                            
                                                                                                                                
9:09:19 AM                                                                                                                    
                                                                                                                                
MS. MORRISON stated  that without having the  ending fund balance                                                               
numbers, she could not give a solid answer.                                                                                     
                                                                                                                                
9:10:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCORMICK  remarked  that   there  is  a  lot  of                                                               
specific information  on what  districts are  paying for,  and he                                                               
sought more specifics on expenditures down to the items.                                                                        
                                                                                                                                
9:11:48 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  ALLARD asked  how much  each  student in  the ASD  gets                                                               
according to the numbers on the spreadsheet.                                                                                    
                                                                                                                                
COMMISSIONER BISHOP replied she does  not have the number, but it                                                               
could be provided at a later date.                                                                                              
                                                                                                                                
9:13:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY commented  that  Juneau would  be happy  to                                                               
talk about the budget.                                                                                                          
                                                                                                                                
9:14:18 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 9:14 a.m. to 9:17 a.m.                                                                       
                                                                                                                                
           SB 13-UNIVERSITY: TEXTBOOKS/MATERIALS COST                                                                       
                                                                                                                                
9:17:06 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD announced that the  final order of business would                                                               
be SENATE BILL  NO. 13, "An Act relating to  costs of and charges                                                               
for textbooks and other course  materials required for University                                                               
of Alaska courses; and providing for an effective date."                                                                        
                                                                                                                                
9:17:23 AM                                                                                                                    
                                                                                                                                
SENATOR  ROBERT   MYERS,  Alaska  State  Legislature,   as  prime                                                               
sponsor,  presented  SB  13.    He  proceeded  with  the  sponsor                                                               
statement  [included  in the  committee  packet],  which read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     For  decades a  major roadblock  to the  acquisition of                                                                    
     higher  education  in  this  country  has  been  costs.                                                                    
     Students  in Alaska  and throughout  the United  States                                                                    
     have  often found  themselves  in difficult  situations                                                                    
     attempting  to  balance  the various  costs  of  higher                                                                    
     education such  as tuition, room and  board, and course                                                                    
     materials. For  many students the cost  of material can                                                                    
     be a deciding  factor in the decision to  take a course                                                                    
     due  to  the  sometimes-exorbitant prices  of  required                                                                    
     course  materials. Students  often  find themselves  as                                                                    
     consumers  subject   to  a  captive  market   that  has                                                                    
     experienced a  colossal growth in  price over  the last                                                                    
     several decades.  The costly  and unique nature  of the                                                                    
     textbook  and course  material market  has led  to many                                                                    
     students being  forced to "shop around"  and attempt to                                                                    
     engage the market as informed consumers.                                                                                   
                                                                                                                                
     The  Textbook Cost  Transparency Act  provides students                                                                    
     with vital information about  their textbook and course                                                                    
     materials  while  they  are  registering  for  classes,                                                                    
     allowing them to make  informed choices and financially                                                                    
     plan.  The  goal  of this  legislation  is  to  provide                                                                    
     students  with as  much information  regarding cost  as                                                                    
     early  as possible  in  the  registration process  with                                                                    
     clearly   defined  definitions   integrated  into   the                                                                    
     University  of Alaska's  shared  online course  catalog                                                                    
     (UAOnline). By  allowing students to see  which classes                                                                    
     come at "zero-cost" or "low-cost"  they will be able to                                                                    
     make more informed financial decisions more easily.                                                                        
                                                                                                                                
     While  faculty will  remain the  paramount deciders  of                                                                    
     class materials, we believe  that by providing students                                                                    
     with  this information  we will  be building  towards a                                                                    
     more  equitable  and cost-effective  University  System                                                                    
     for students at the class level.                                                                                           
                                                                                                                                
9:19:44 AM                                                                                                                    
                                                                                                                                
DAWSON   MANN,  Staff,   Senator  Robert   Myers,  Alaska   State                                                               
Legislature, on behalf of Senator  Myers, prime sponsor, gave the                                                               
sectional analysis  for SB  13, which  read as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Section 1: Page 1, Lines 4-6                                                                                         
     This section establishes that this  act may be known as                                                                    
     the "Textbook Cost Transparency Act".                                                                                      
                                                                                                                                
     Section 2: Page 1, Lines 7-14, Page 2, Lines 1-16                                                                    
     This   section  outlines   the  information   that  the                                                                    
     University  of Alaska  must provide  in the  University                                                                    
     systems  online  course   schedule  relating  to  class                                                                    
     materials   and  automatic   fees   required  for   the                                                                    
     materials.  This section  provides statute  definitions                                                                    
     for  "course  materials",   "online  course  schedule",                                                                    
     "zero-cost resources",  and "low-cost  resources". This                                                                    
     section  also  directs  that  the  universities  online                                                                    
     course  schedule  must   include  search  functions  to                                                                    
     identify  courses  with   only  zero-cost  or  low-cost                                                                    
     materials required.                                                                                                        
                                                                                                                                
     Section 3: Page 2, Line 17                                                                                           
     This  section establishes  an  effective  date for  the                                                                    
     bill of July 1st, 2026.                                                                                                    
                                                                                                                                
MR.  MANN offered  his appreciation  to the  representatives from                                                               
the  University   of  Alaska  (UA)   for  building   the  student                                                               
information system  modernization project from the  ground up and                                                               
having this legislation in mind.                                                                                                
                                                                                                                                
9:21:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HIMSCHOOT  asked   how  the   bill  related   to                                                               
Representative Carrick's bill.                                                                                                  
                                                                                                                                
SENATOR MYERS said the bill  is word for word what Representative                                                               
Carrick introduced on the House side.                                                                                           
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  referred to  the changes to  the online                                                               
system and asked whether UA would absorb those costs.                                                                           
                                                                                                                                
SENATOR MYERS replied that UA  is putting in new computer systems                                                               
from the  ground up, and  it would be  easier and cheaper  to put                                                               
something in as it is building the system.                                                                                      
                                                                                                                                
9:23:16 AM                                                                                                                    
                                                                                                                                
SARA  PERMAN,  State  Relations  Manager,  Office  of  Government                                                               
Relations, University  of Alaska System,  stated that UA  did not                                                               
put  a  fiscal note  forward  because  in 2022,  the  legislature                                                               
appropriated   $20  million   for  student   information  systems                                                               
upgrades.    She added  that  UA  took  a previous  platform  and                                                               
extended  it through  2023, and  recently began  implementing the                                                               
funding.                                                                                                                        
                                                                                                                                
9:24:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX opined  there is no reason not  to pass SB13.                                                               
In terms of managing textbook  costs, he questioned what would be                                                               
accomplished.                                                                                                                   
                                                                                                                                
MS. PERMAN said SB 13  did not specify decreasing costs; however,                                                               
both  this   bill  and  another   Act  from  2008   require  cost                                                               
transparency.                                                                                                                   
                                                                                                                                
9:26:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCORMICK asked for a  ballpark figure on the flat                                                               
fee.                                                                                                                            
                                                                                                                                
MS. PERMAN deferred to [Mr. Shier].                                                                                             
                                                                                                                                
9:27:08 AM                                                                                                                    
                                                                                                                                
BENJAMIN SHIER, Chief  Information Technology Officer, University                                                               
of Alaska  System, said  the number  is around  $230, which  is a                                                               
partnership with Barnes and Noble.                                                                                              
                                                                                                                                
9:27:46 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  ALLARD  opened  public  testimony  on  SB  13.    After                                                               
ascertaining  no  one  wished  to   testify,  she  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
9:28:10 AM                                                                                                                    
                                                                                                                                
SENATOR MYERS noted that in the bill packet there are letters of                                                                
support.                                                                                                                        
                                                                                                                                
9:28:43 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD set an amendment deadline for SB 13.                                                                            
                                                                                                                                
[SB 13 was held over.]                                                                                                          
                                                                                                                                
9:29:13 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Education Standing Committee meeting was adjourned at 9:29 a.m.