HOUSE SPECIAL COMMITTEE MILITARY AND VETERANS AFFAIRS March 31, 1993 5:00 p.m. MEMBERS PRESENT Rep. Eldon Mulder, Co-Chairman Rep. Pete Kott Rep. Ed Willis MEMBERS ABSENT Rep. Richard Foster, Co-Chairman Rep. Mike Navarre OTHER LEGISLATIVE MEMBERS PRESENT Sen. Loren Leman Sen. Randy Phillips COMMITTEE CALENDAR Military Base Schools WITNESS REGISTER JAN CATTON, Chairman Parent Advocacy Committee 6340 H St., Apt. A Elmendorf Air Force Base, AK 99506 (907) 753-0714 Position Statement: Addressed military base school needs JANET STOKESBURY Chief Financial Officer (Acting) Anchorage School District 4600 Debarr Anchorage, AK 99519-6614 (907) 269-2394 Position Statement: Addressed military base school needs CHUCK LANDERS, Assemblyman Municipality of Anchorage HC 83, Box 192A Myrhes Eagle River, AK 99577 (907) 694-9098 Position Statement: Addressed military base school needs ACTION NARRATIVE TAPE 93-6, SIDE A Number 000 CHAIRMAN ELDON MULDER called the House Military and Veterans Affairs Committee to order at 5:10 p.m. on March 31, 1993. Members present were Rep. Kott and Rep. Willis. Members absent were Rep. Foster and Rep. Navarre. Other legislative members present were Sen. Leman and Sen. Phillips. Number 045 JAN CATTON, CHAIRMAN, PARENT ADVOCACY COMMITTEE, stated that the information on military base schools she gave to Chairman Mulder was accurate. She stated that the land is owned by the Department of Defense (DOD), but the buildings are owned by the United States Department of Education (DOE); and until the schools are brought up to acceptable standards in the Anchorage School District, ownership of the schools will not be transferred to the Anchorage School District. She stated that there are seven schools in Anchorage in this category (three on Ft. Richardson and Four on Elmendorf AFB) and there are schools on Eielson AFB that are in the same situation. Number 060 MS. CATTON said her committee was working to see that all of these schools receive funding. She stated that the facts and figures she provided were fairly accurate for the funding ($41,624,075) her committee was requesting. She stated that the facts and figures for Elmendorf and Ft. Richardson were off because they were 1990 cost estimates. MS. CATTON remarked that she had asked Mr. Crystal (acting superintendent of the Anchorage School District) to put together or review the cost estimates for those seven schools in Anchorage so they could receive current cost estimates. She also noted that she had asked for studies concerning the efficiency of these facilities. She stated that this was done in Fairbanks and was beneficial. She also stated that her committee would like this to be done in Anchorage. She pointed out that, at this time, the facts and figures she had provided were the most current until she receives the ones requested from the acting superintendent. Number 137 SEN. LEMAN referred to a letter from Steve Hole (who was then with the state Department of Education) to Carl LaMarr (acting superintendent of the Anchorage School District), asked if the priorities list changed its emphasis due to the projected military cuts in Anchorage and Fairbanks. Number 160 MS. CATTON stated that she was not the best one to ask as to what the federal government's plans are for the military in the future. She stated that Lt. General Ralston would probably be able to give a fairly accurate look as to the future of military bases in Alaska. She stated that a community does not really know what the military brings to that community until there is a base closing. She said she was confident, given the strategic location of Alaska, that the state will be minimally affected by the base closures. Ms. Catton said she was not active duty military and Lt. General Ralston should be contacted for his input. Number 180 SEN. LEMAN commented that he was impressed with the proposals for the expenditures, both on Ft. Richardson and Elmendorf. He noted that there was one facility for children at a cost of about $5 million. He stated that this might be a very needed facility, but he found himself thinking as to what could be done with that $5 million at Mt. Spur School. He asked if she was aware of that list. Number 190 MS. CATTON stated yes, it was the one that was published in the Daily News yesterday or today. SEN. LEMAN replied yes. MS. CATTON remarked that she was aware of the funds ($5 million) that were allocated to the child care center on the base (Elmendorf). She told the members that her committee had asked if discretionary funds from the military could be used for these schools, and the request was denied on legalities. She stated that the problem was that the funds coming from the DOD (for things like the child care center) are not available for U.S. DOE buildings. Number 209 (Rep. Mulder stated for the record that Sen. Phillips had joined the meeting.) REP. MULDER asked Ms. Catton what her understanding was of the situation in which money was appropriated for Ursa Major before it was in limbo. He asked Ms. Catton if there was any indication that they were going to release those funds. Number 218 MS. CATTON stated that the only indication she had was when she wrote that package. (Ms. Catton's information was provided to the committee and is on file in the committee office.) She stated that Janet Stokesbury would have the current information. Number 227 JANET STOKESBURY, CHIEF FINANCIAL OFFICER (ACTING), ANCHORAGE SCHOOL DISTRICT, stated that the district had been in contact with the U.S. DOE that morning (Charles Hanson's office), over the Ursa Major project. She said she believed that everything was still going forward with the grant on the Ursa Major project. She noted that the school district was currently working with the Bureau of Land Management to receive the lease agreement. She stated that a draft of a memorandum of understanding had been done with the 6th Infantry and was being reviewed through the Corps of Engineers. MS. STOKESBURY also noted that since the 1990 list, there have been certain projects at Ursa Major that have been done through local funds and state funds. She commented that a revised project description was submitted and was with the U.S. Department of Education, which was sent to a Washington state office of engineers. She stated that, other than reviewing it, the district has not heard back yet on the status. She said the district will contact the legislature if there were any problems; however, there have been no problems. MS. STOKESBURY commented that the district was still in the process of paying the rent and they had received no notification that there was any hold up. She said they were advised not to spend any money until they received the actual grant award. Number 254 REP. MULDER stated that funds are given annually to the school district by the federal government for federal impact for military students. He asked if some of those funds could go for maintenance and upkeep of school buildings. Number 264 MS. STOKESBURY responded that up until the current years, the state of Alaska was the educational agency that was the applicant for military schools on Ft. Richardson and Elmendorf. She stated that prior to the current year, the funds, except for the special education add-on, had been going directly to the state and viewed as a state revenue source. She said the state would then give funding to the Anchorage School District in the form of foundation revenue and as state tuition funding in place of not taxing property on military bases. She noted a memorandum of agreement that the Anchorage School District had with the state of Alaska. MS. STOKESBURY explained that during the current year the district was notified by the state DOE that they wanted to renegotiate that contract. She said they had been notified by the federal government that this funding source (federal impact aid) needed to come directly to the Anchorage School District. Ms. Stokesbury said the district was in the process of working on a new memorandum of agreement with the state. MS. STOKESBURY noted that the Anchorage School District was going to receive funding of about $165 thousand less than usual by receiving federal impact aid directly. She stated that the foundation formula has a reduction for 90 percent of local contributions. She said the Anchorage School District local contributions were about 62 percent out of the federal impact aid money. She stated that the district was going to receive less than $6.5 million in foundation funding and then not receive any state tuition funding. However, the district would receive federal impact money directly. She noted that this was going to net the Anchorage School District about $165 thousand less in 1992/1993. MS. STOKESBURY explained that the state DOE has agreed that the agreement for this year would be to make the Anchorage School District whole (all three school districts whole) for the fiscal year 1992/1993, so they will give the Anchorage School District other sources of state revenue ($165 thousand). She stated that the district was currently working on a memorandum of agreement for the fiscal year 1993/1994. She said if the appropriation was made by the legislature, hopefully, the funding would be made for the Anchorage School District. She explained that the funding the district was talking about had been used as a funding source for general operations. She said the district had a memorandum of agreement that stated the amount of money that the Anchorage School District was obligated for to perform maintenance of schools ($25,000 or less), and it stated how much money the state of Alaska was obligated for to perform maintenance of schools ($25,000 or more). Number 321 CHAIRMAN MULDER asked if it was specific about the responsibility of the state DOE to pay for the costs of maintenance over $25,000. MS. STOKESBURY replied yes, it was through a memorandum of agreement that had been in effect up until this current year when the DOE notified the district that they wanted to renegotiate. She noted that the district had been trying to get the DOE to negotiate. She added that the district had been operating by statutes as opposed to the memorandum. Number 336 CHUCK LANDERS, ASSEMBLYMAN, MUNICIPALITY OF ANCHORAGE, emphasized the importance of the military, the importance of children, and the importance of the way in which the legislature handles this matter. He stated that he thought the legislature should try to match funds given by the federal government for these schools. He remarked that if the money needed was not found, then a task force should be put together with a short time frame to get something done. He said the task force would need to approach this from different angles: through U.S. Senator Ted Stevens' office, the military, the legislature, the school district, and the assembly. Number 408 CHAIRMAN MULDER stated that he had been in contact with U.S. Senator Ted Stevens' office over this matter. Chairman Mulder commented that U.S. Senator Ted Stevens was in the best position to help with this problem. The Chairman also stated that one idea to be considered would be to do a 50/50 match leveraging the federal government and leveraging the state. Chairman Mulder said he also talked to Lt. General Ralston and he pledged he would do everything possible to help. Number 445 CHAIRMAN MULDER stated that if the legislature was unable to get the funding this session, the task force that Chuck Landers suggested should be formed to have a resolution to report back to the legislature next session. He said that the public-at-large would have a greater impact on the legislature than the five members advocating a certain position. Number 450 ASSEMBLYMAN LANDERS stated that if the legislature doesn't get the solution in the next 30 days, it should be expanded out of the Anchorage area. He emphasized that this was not a district issue, but a state issue. Number 465 CHAIRMAN MULDER remarked that Chuck Landers was right. He stated that the Muldoon discretionary funds would not total $20 million. Number 468 CHAIRMAN MULDER said he hoped to have this resolution drafted in the next two or three days. Number 473 MS. CATTON suggested that Chairman Mulder include the military liaison officer, Captain Dennis Porter. Ms. Catton stated that she was a can-do person. Ms. Catton suggested that one idea of getting money to fund these schools would be to take the interest earning reserve from the permanent dividend account. Number 510 CHAIRMAN MULDER stated that both houses were almost at unanimous support for some level of funding for school construction, but the location of that funding was the stumbling block. He said a comprehensive school construction package that the legislature could agree upon for the schools was coming up. Chairman Mulder commented that if it was not this year, then next year the legislature would come up with a comprehensive school construction package. He stated that it was his concern that Alaska address this problem and show the U.S. Department of Defense that Alaska was serious about its military bases. Number 557 MS. CATTON said she had received information from Sen. Kelly's office which showed that the interest earning reserve, as of Feb. 28, 1993, was about $836.5 million. She stated that if $25 million was taken out of that, it would be a drop in the bucket. She also said if the state could show that $25 million was put into bringing the schools up to standards, the state could say to the federal government that it had done its share, now they needed to do the same. She asked what the possibility was of that. CHAIRMAN MULDER stated that the earnings reserve was a part of the overall budget package at this time and the state was in a budget deficit which was already utilizing much of the earnings reserve and leaving very little left for carrying over next year. He stated that there were other schools in Alaska that needed funding as well as military base schools. Number 594 ASSEMBLYMAN LANDERS pointed out that nobody has taken responsibility for these schools and no local or state government has tried to solve the problem. He said this was an opportunity to sell the program throughout the state where there is a military presence. MS. CATTON stated that these military base schools were not capable of receiving bond money for capital projects like the other schools in the state. She said these problems are because they are not owned by the school district. She stated that these schools should be brought into the Anchorage School District. She stated that the only way to do that would be to get funding from the state legislature, and the state would need to take creative measures in appropriating funds for these schools. Number 673 CHAIRMAN MULDER stated that the Military and Veterans Affairs Committee was committed to seeing that this problem resolved. He said it was in the best interest of all Alaskans to provide quality education for all of the children, whether on military bases or off military bases. Number 730 CHAIRMAN MULDER stated that as a delegation of the Anchorage Caucus in representing the military, they sent a letter to the board members of the Anchorage School District requesting that they allow for representation of an ex-officio (non-voting representation on the board) for the military bases. He said this would allow for the base schools' concerns to be heard. Chairman Mulder stated that this was an issue that he visited with Col. Vakalis and Lt. General Ralston about, and they both felt strongly that representation like this was needed on the school board. ADJOURNMENT CHAIRMAN MULDER adjourned the meeting at 6:05 p.m.