ALASKA STATE LEGISLATURE                                                                                  
              SENATE EDUCATION STANDING COMMITTEE                                                                             
                         April 1, 2013                                                                                          
                           7:59 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Gary Stevens, Chair                                                                                                     
Senator Mike Dunleavy, Vice Chair                                                                                               
Senator Bert Stedman                                                                                                            
Senator Charlie Huggins                                                                                                         
Senator Berta Gardner                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 84                                                                                                              
"An Act relating to the Alaska Challenge Youth Academy; and                                                                     
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
SENATE BILL NO. 6                                                                                                               
"An Act providing for funding for school lunch and breakfast;                                                                   
and providing for an effective date."                                                                                           
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 84                                                                                                                   
SHORT TITLE: MILITARY YOUTH ACADEMY                                                                                             
SPONSOR(s): SENATOR(s) GIESSEL                                                                                                  
                                                                                                                                
03/21/13       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/21/13       (S)       EDC, FIN                                                                                               
04/01/13       (S)       EDC AT 8:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 6                                                                                                                    
SHORT TITLE: FUNDING FOR SCHOOL MEALS                                                                                           
SPONSOR(s): SENATOR(s) WIELECHOWSKI                                                                                             
                                                                                                                                
01/16/13       (S)       PREFILE RELEASED 1/7/13                                                                                
01/16/13       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/13       (S)       EDC, FIN                                                                                               
04/01/13       (S)       EDC AT 8:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR CATHY GIESSEL                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 84.                                                                                         
                                                                                                                                
LINDSAY WILLIAMS, Staff                                                                                                         
Senator Cathy Giessel                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Discussed the fiscal impact of SB 84.                                                                     
                                                                                                                                
MCHUGH PIERRE, Deputy Commissioner                                                                                              
Alaska Department of Military & Veterans Affairs                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Provided information about the fiscal notes                                                               
for SB 84.                                                                                                                      
                                                                                                                                
CLYDE T. BURTON, Director                                                                                                       
Alaska Military Youth Academy                                                                                                   
Alaska Department of Military & Veterans Affairs                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Provided supportive testimony for SB 84.                                                                  
                                                                                                                                
MAJOR GENERAL THOMAS H. KATKUS, Commissioner                                                                                    
Alaska Department of Military & Veterans Affairs                                                                                
Fort Richardson, Alaska                                                                                                         
POSITION STATEMENT: Provided supportive testimony for SB 84.                                                                  
                                                                                                                                
SENATOR BILL WIELECHOWSKI                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 6.                                                                                          
                                                                                                                                
KENDRA KLOSTER, Staff                                                                                                           
Senator Bill Wielechowski                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced SB 6 on behalf of the sponsor.                                                                 
                                                                                                                                
ADRIANNE SCHWARTZ, Food Service Supervisor                                                                                      
Juneau School District                                                                                                          
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided supportive testimony for SB 6.                                                                   
                                                                                                                                
DAVID NEES, representing himself                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Spoke in opposition to SB 6.                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
7:59:52 AM                                                                                                                    
CHAIR  GARY   STEVENS  called   the  Senate   Education  Standing                                                             
Committee meeting  to order at 7:59  a.m. Present at the  call to                                                               
order  were Senators  Gardner,  Stedman,  Huggins, Dunleavy,  and                                                               
Chair Stevens.                                                                                                                  
                                                                                                                                
                  SB 84-MILITARY YOUTH ACADEMY                                                                              
                                                                                                                                
8:00:03 AM                                                                                                                    
CHAIR STEVENS  announced that the  first order of  business would                                                               
be SB 84.                                                                                                                       
                                                                                                                                
SENATOR CATHY  GIESSEL, sponsor of  SB 84, related that  the bill                                                               
does  three things:  it amends  the state  statute to  change the                                                               
funding mechanism  for the Alaska Military  Youth Academy (AMYA),                                                               
it  establishes the  program in  the Department  of Military  and                                                               
Veterans Affairs  (DMVA), and  it updates  the program  name from                                                               
Alaska  Challenge  Youth Academy  to  the  Alaska Military  Youth                                                               
Academy.                                                                                                                        
                                                                                                                                
She explained the  reason she was carrying the  bill. She related                                                               
how impressed  she was with  AMYA when she first  encountered it.                                                               
She said the  program consists of kids who  otherwise would "fall                                                               
through  the cracks."  She  shared a  personal  story about  John                                                               
Lopetrone, the carpentry  teacher at AMYA. She  stressed that the                                                               
Academy makes a  tremendous difference in kids'  lives. She noted                                                               
that the Academy  has rigorous standards, which is  what the kids                                                               
need.                                                                                                                           
                                                                                                                                
8:02:16 AM                                                                                                                    
SENATOR  GIESSEL  explained  that the  Academy  targets  students                                                               
between 16 and 18  that have dropped out of high  school. It is a                                                               
22-week residential  school program. It has  graduated over 4,000                                                               
cadets. She  noted that out  of 27 states with  similar programs,                                                               
Alaska's program is ranked in the top five.                                                                                     
                                                                                                                                
8:03:03 AM                                                                                                                    
LINDSAY WILLIAMS,  Staff, Senator  Cathy Giessel,  explained that                                                               
currently  under  AS 14.37.40,  about  one-third  of the  program                                                               
funding comes  from a space/student  calculation. The  formula is                                                               
equal to the  Base Student Allocation (BSA), multiplied  by 7 for                                                               
each residential student, added to  the BSA, multiplied by .6 for                                                               
each  non-residential student,  and then  any amount  received by                                                               
the program  and by  federal matching  grants is  subtracted. The                                                               
formula  was created  in 2002  to  protect a  young and  fledging                                                               
program. Over  the past decade  the Academy has grown  and proven                                                               
to be very successful. It is  time to move the program funding to                                                               
a direct appropriation  so that the Academy can  budget and focus                                                               
on results and graduation rates.                                                                                                
                                                                                                                                
SENATOR DUNLEAVY joined the committee meeting.                                                                                  
                                                                                                                                
MS.  WILLIAMS pointed  out that  the Academy  has been  operating                                                               
since 1993.  It was never  formally established in  statute under                                                               
the  direction  of   DMVA.  This  bill  helps   to  correct  this                                                               
oversight.                                                                                                                      
                                                                                                                                
She  explained that  in  1999, Senator  Stevens,  along with  the                                                               
legislature, encouraged changing  the name of the  program to the                                                               
Alaska Military Youth Academy.                                                                                                  
                                                                                                                                
8:04:34 AM                                                                                                                    
CHAIR STEVENS asked  for an explanation of  the funding mechanism                                                               
and the impact of the fiscal note on the budget in the future.                                                                  
                                                                                                                                
MS.  WILLIAMS  replied that  the  bill  repeals the  current  BSA                                                               
calculation and changes it to a direct appropriation from DMVA.                                                                 
                                                                                                                                
CHAIR  STEVENS asked  how many  students receive  a GED  versus a                                                               
high  school  diploma  and  how many  enter  the  military  after                                                               
graduation.                                                                                                                     
                                                                                                                                
SENATOR GIESSEL deferred to the Academy's staff to answer.                                                                      
                                                                                                                                
SENATOR GARDNER  asked about Section  2 of the bill,  which makes                                                               
the  Academy  a  part  of  the  National  Guard  Youth  Challenge                                                               
program.                                                                                                                        
                                                                                                                                
MS.  WILLIAMS  explained  that  it  is  simply  a  formality.  By                                                               
repealing  the BSA,  the  reference to  the  Academy is  removed;                                                               
therefore, it needs to be formally established under DMVA.                                                                      
                                                                                                                                
CHAIR  STEVENS noted  the letter  previously  referenced has  not                                                               
been  sent to  the committee.  He requested  the spelling  of the                                                               
person who sent the letter.                                                                                                     
                                                                                                                                
SENATOR GIESSEL said it was John Lopetrone.                                                                                     
                                                                                                                                
8:07:15 AM                                                                                                                    
MCHUGH   PIERRE,  Deputy   Commissioner,  Alaska   Department  of                                                               
Military & Veterans  Affairs (DMVA), noted there  were two fiscal                                                               
notes; one  from DMVA  and one from  the Department  of Education                                                               
and Early  Development. He addressed  the fiscal note  from DMVA,                                                               
which he said is a "zero  change" and is a formality. The current                                                               
operating budget is  the vehicle that will fund  the program. The                                                               
effective date of  the bill is for next fiscal  year, which means                                                               
there  will be  a direct  appropriation from  DMVA at  that time.                                                               
There is  a total  of $9.5  million operating  dollars in  FY 14,                                                               
which  includes $1.5  million in  access  authority. The  Academy                                                               
will not come  from the Department of Education,  but rather from                                                               
a National Guard program in DMVA.                                                                                               
                                                                                                                                
CHAIR STEVENS asked how that will impact the state.                                                                             
                                                                                                                                
MR. PIERRE said there is no  fiscal impact to the state. The goal                                                               
is to focus on graduating students.                                                                                             
                                                                                                                                
8:09:33 AM                                                                                                                    
SENATOR GARDNER asked  about any expected changes  to the funding                                                               
of the  matching grant  program from  the Department  of Defense.                                                               
She requested  more information about  not using the BSA  with an                                                               
October student count.                                                                                                          
                                                                                                                                
MR. PIERRE addressed  the first question by saying  that DMVA has                                                               
been given  commitments from the  National Guard Bureau  that the                                                               
funding will remain  the same. In answer to  the second question,                                                               
he explained that  DMVA's funding formula is a  multiplier of the                                                               
BSA  which  was needed  in  2002  when  the  BSA was  $3,000  per                                                               
student. The needs  of the program have changed  and that funding                                                               
does not fit.  He said he does  not have the expertise  to say if                                                               
it is relevant to a K-12 school.                                                                                                
                                                                                                                                
8:11:03 AM                                                                                                                    
SENATOR  HUGGINS recalled  the  demographics of  the Academy  and                                                               
termed it "a school of choice."                                                                                                 
                                                                                                                                
MR. PIERRE deferred to Mr. Burton to answer.                                                                                    
                                                                                                                                
SENATOR HUGGINS  noted the first  line of the Academy  letter and                                                               
corrected  that  30  percent  of high  school  freshmen  fail  to                                                               
graduate. He  asked if  the Academy  is open  to all  students in                                                               
Alaska, who must apply to be accepted.                                                                                          
                                                                                                                                
MR. PIERRE said yes.                                                                                                            
                                                                                                                                
8:12:35 AM                                                                                                                    
MAJOR GENERAL  THOMAS H. KATKUS, Commissioner,  Alaska Department                                                               
of Military & Veterans Affairs, introduced himself.                                                                             
                                                                                                                                
CLYDE  T. BURTON,  Director, Alaska  Military and  Youth Academy,                                                               
Alaska  Department of  Military  &  Veterans Affairs,  introduced                                                               
himself.                                                                                                                        
                                                                                                                                
MAJOR  GENERAL KATKUS  provided an  overview of  how the  Academy                                                               
evolved.  He explained  that the  need  for a  youth academy  was                                                               
first  identified 20  years ago  and was  put under  the National                                                               
Guard  and the  Department  of  Defense (DOD)  in  order to  help                                                               
prevent  the  high national  dropout  rate.  The program  was  to                                                               
target  high  risk youth  and  was  designed  to use  a  military                                                               
approach on  discipline, organization, and instilling  values. It                                                               
was not for the purposes of recruitment.                                                                                        
                                                                                                                                
He noted the  program has been very successful. He  said he could                                                               
not predict  DOD's future  funding in  light of  today's economy.                                                               
The State  of Alaska  has provided the  majority of  the funding,                                                               
rather than the federal government.                                                                                             
                                                                                                                                
He explained that  SB 84 would facilitate a needed  change to the                                                               
funding formula.  The goal is  to get more students  to graduate,                                                               
not  to get  more students  in the  program at  the beginning.  A                                                               
direct appropriation  provides the commission the  opportunity to                                                               
identify  the  Academy's  needs  each year  and  make  a  funding                                                               
request.                                                                                                                        
                                                                                                                                
8:15:04 AM                                                                                                                    
MR.  BURTON agreed  with Major  General  Katkus's statements.  He                                                               
called the Academy  a customer-service-oriented and results-based                                                               
organization.  In the  past, with  330 students,  there was  less                                                               
than  a  50 percent  success  rate.  The  current class  had  the                                                               
highest retention rate so far.                                                                                                  
                                                                                                                                
He agreed that the current  funding formula creates a ceiling and                                                               
limits efficiency.                                                                                                              
                                                                                                                                
CHAIR  STEVENS  noted  the  Governor's   goals  to  increase  the                                                               
graduation rate and to enhance  digital learning. He inquired how                                                               
the  military deals  with a  GED  or diploma  when accepting  new                                                               
recruits.  He also  wanted to  know the  number of  graduates who                                                               
earn their GED, versus a diploma.                                                                                               
                                                                                                                                
MAJOR GENERAL  KATKUS replied that the  Academy provides dropouts                                                               
the ability  to get the  remaining credits necessary  to graduate                                                               
or  a GED,  both  of  which are  acceptable  for  entry into  the                                                               
military.                                                                                                                       
                                                                                                                                
8:17:36 AM                                                                                                                    
SENATOR HUGGINS  noted that students  with a  GED can go  back to                                                               
school  to  earn  a  diploma. He  characterized  the  program  as                                                               
allowing those who  are close to graduating to get  a diploma and                                                               
those who are not to go back  to their school to earn the credits                                                               
needed to graduate.                                                                                                             
                                                                                                                                
MAJOR  GENERAL KATKUS  said  that is  correct.  The Academy  also                                                               
provides students the opportunity  to experience military culture                                                               
or work.                                                                                                                        
                                                                                                                                
MR.  BURTON  pointed  out  that the  program  is  voluntary.  The                                                               
student  must   volunteer  for   the  program,   which  increases                                                               
retention. Half  of the  class is  made up  of sixteen-year-olds,                                                               
which is  a great advantage  toward getting the students  back on                                                               
track in order to graduate from  their high school. The number of                                                               
high school diplomas the Academy awards is small.                                                                               
                                                                                                                                
8:20:17 AM                                                                                                                    
SENATOR DUNLEAVY asked how many staff are at the Academy.                                                                       
                                                                                                                                
MR.  BURTON replied  that there  are 75  staff and  some unfilled                                                               
positions.                                                                                                                      
                                                                                                                                
SENATOR DUNLEAVY inquired how many are teachers.                                                                                
                                                                                                                                
MR. BURTON said eight are teachers.                                                                                             
                                                                                                                                
SENATOR DUNLEAVY asked if they are certified teachers.                                                                          
                                                                                                                                
MR. BURTON said they are not certified.                                                                                         
                                                                                                                                
SENATOR DUNLEAVY asked if there is a chaplain at the Academy.                                                                   
MR. BURTON said there are  voluntary church services every Sunday                                                               
and guest chaplains lead them.                                                                                                  
                                                                                                                                
SENATOR STEDMAN  asked about the advantages  and disadvantages of                                                               
certified versus non-certified teachers.                                                                                        
                                                                                                                                
MR. BURTON replied that the  Academy has extremely good teachers.                                                               
He did  not see  an advantage of  certification in  the Academy's                                                               
program. He  noted the reading/writing  teacher is  certified. He                                                               
stressed the holistic approach of  the Academy's curriculum, with                                                               
a focus  on academics, as  well as  life skills, job  skills, and                                                               
fitness.                                                                                                                        
                                                                                                                                
8:22:29 AM                                                                                                                    
SENATOR  DUNLEAVY asked  if Mr.  Burton had  considered expanding                                                               
the Academy to being a full-fledged military academy.                                                                           
                                                                                                                                
MR.  BURTON  said he  personally  thinks  that  is a  good  idea;                                                               
however,  the  Academy  is  constrained  from  doing  so  by  the                                                               
cooperative  agreement it  operates  under. The  Academy is  only                                                               
allowed to take dropouts.                                                                                                       
                                                                                                                                
He noted  the Academy has  a great teaming relationship  with the                                                               
Department of  Education and with  school districts and  does not                                                               
wish to take away from public school programs.                                                                                  
                                                                                                                                
MAJOR  GENERAL  KATKUS  further explained  that  the  cooperative                                                               
agreement  consists of  rules and  regulations from  the National                                                               
Guard Bureau, the national program.                                                                                             
                                                                                                                                
8:24:13 AM                                                                                                                    
SENATOR  HUGGINS  asked  Mr.  Burton  to  verify  if  an  Academy                                                               
graduate went on to the Naval Academy.                                                                                          
                                                                                                                                
MR. BURTON said that was correct.                                                                                               
                                                                                                                                
SENATOR  HUGGINS asked  what  a graduation  from  the Academy  is                                                               
like.                                                                                                                           
                                                                                                                                
MR.  BURTON replied  that  the most  recent  graduation was  very                                                               
emotional and patriotic. There were 144 graduates.                                                                              
                                                                                                                                
MAJOR GENERAL KATKUS described the  growth of confidence shown in                                                               
graduates by their firm handshakes.                                                                                             
                                                                                                                                
MR. BURTON pointed out that  the graduates are sincerely grateful                                                               
for their Academy experience.                                                                                                   
                                                                                                                                
He noted that the standards of the Academy are very high.                                                                       
                                                                                                                                
8:27:12 AM                                                                                                                    
SENATOR HUGGINS opined  that it does not matter  if the graduates                                                               
have the  diploma or the GED,  the program provides hope  and the                                                               
ability to move  forward when many had given up.  He asked for an                                                               
explanation of  how the Academy  demonstrates when a  student has                                                               
challenges.                                                                                                                     
                                                                                                                                
MR. BURTON  said Senator  Huggins is referring  to the  Hard Core                                                               
Program involving consequences for behavior.                                                                                    
                                                                                                                                
8:30:00 AM                                                                                                                    
CHAIR STEVENS  noted his appreciation  for military  training and                                                               
the Academy.                                                                                                                    
                                                                                                                                
CHAIR STEVENS announced that SB 84 would be held in committee.                                                                  
                                                                                                                                
8:30:40 AM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
                 SB 6-FUNDING FOR SCHOOL MEALS                                                                              
                                                                                                                              
8:32:17 AM                                                                                                                    
CHAIR  STEVENS called  the meeting  back to  order. He  announced                                                               
that the final bill before the committee would be SB 6.                                                                         
                                                                                                                                
SENATOR BILL WIELECHOWSKI,  sponsor of SB 6, said  the bill would                                                               
provide a  state match for  schools participating in  the federal                                                               
free and  reduced-price school breakfast  and lunch  program. The                                                               
state match  would be 35  cents for  each breakfast and  15 cents                                                               
for each  lunch. Alaska is one  of the few states  in the country                                                               
that does  not have a  state contribution  which causes a  gap of                                                               
about  $2.1 million  for schools  to  fund out  of their  general                                                               
funds.  He  noted  that  studies strongly  show  that  kids  that                                                               
receive  meals at  school  tend  to be  less  obese, have  better                                                               
attendance records, and do better  academically. The state spends                                                               
over $1 billion for education  every year. If students are hungry                                                               
and cannot  pay attention, that money  is not being used  as well                                                               
as it could be.                                                                                                                 
                                                                                                                                
He noted that the bill has passed the Senate twice before.                                                                      
                                                                                                                                
8:34:03 AM                                                                                                                    
KENDRA KLOSTER,  Staff, Senator Bill Wielechowski,  introduced SB                                                               
6. She explained the three goals  of SB 6 as follows: to increase                                                               
the  number of  meals  served, increase  the  number of  students                                                               
receiving meals, and providing more nutritious meals.                                                                           
                                                                                                                                
She shared statistics  related to kids in need. One  out of eight                                                               
Alaska families  struggles to put  enough food on the  table each                                                               
year.  She  said 74,000  families  seek  food assistance  and  43                                                               
percent of households visiting food  pantries have children under                                                               
the  age of  18. She  related  that 51,000  Alaskan children  are                                                               
eligible  for   free  or  reduced  lunch,   however,  six  school                                                               
districts do not  offer either breakfast or lunch  and 20 percent                                                               
of  the schools  are not  offering  breakfast. Alaska  is in  the                                                               
bottom  10  percent  of  the  state  for  participation  in  food                                                               
programs.                                                                                                                       
                                                                                                                                
She discussed  statistics related  to schools  in need.  It costs                                                               
rural schools more to provide food programs.                                                                                    
                                                                                                                                
8:36:02 AM                                                                                                                    
MS. KLOSTER listed the reasons  to have food programs in schools.                                                               
They  provide  a solid  investment  in  children's futures.  They                                                               
promote better  health, and behavior  and performance  in school.                                                               
They lower  the dropout rates,  prison populations,  and obesity,                                                               
and provides higher incomes.                                                                                                    
                                                                                                                                
She cited a  number of studies that show positive  effects of the                                                               
school meal program.                                                                                                            
                                                                                                                                
8:38:31 AM                                                                                                                    
MS. KLOSTER  addressed the state  supplement to  federal funding.                                                               
She  said  the  more  the program  increases,  the  more  federal                                                               
dollars are  available to the  state. She referred to  letters of                                                               
support for the program.                                                                                                        
                                                                                                                                
She  summarized that  SB 6  is a  solid investment  in children's                                                               
futures.                                                                                                                        
                                                                                                                                
CHAIR STEVENS asked  to Ms. Kloster to clarify if  SB 6 increases                                                               
the  number of  children  who would  receive the  breakfast/lunch                                                               
program or if is simply replaces funding from one source.                                                                       
                                                                                                                                
MS. KLOSTER replied  that funds were being taken  out of schools'                                                               
operating  budgets and  SB 6  provides funding  from a  different                                                               
source. It will  not cover the entire recent  shortfall, but will                                                               
help.  She reported  that some  of the  schools plan  to use  the                                                               
funding to increase the nutrition of  the meals. One of the goals                                                               
is to add more students and receive more federal funding.                                                                       
                                                                                                                                
8:40:41 AM                                                                                                                    
SENATOR GARDNER asked about the  cost of the state's supplemental                                                               
funding  mentioned on  page 27.  She wondered  why the  breakfast                                                               
cost more than the lunch.                                                                                                       
                                                                                                                                
MS. KLOSTER deferred to Ms. Schwartz to answer.                                                                                 
                                                                                                                                
ADRIANNE  SCHWARTZ,   Food  Service  Supervisor,   Juneau  School                                                               
District, testified in support of  SB 6. She explained that there                                                               
is a very  low number of students participating  in the breakfast                                                               
program,  so  more  funding  would   increase  the  numbers.  The                                                               
reimbursement rate  for the  breakfast is a  lot lower  than that                                                               
for  the  lunch  program.  The supplemental  funding  would  also                                                               
provide for a higher quality breakfast.                                                                                         
                                                                                                                                
8:42:18 AM                                                                                                                    
SENATOR GARDNER  noted a concern  about ensuring enough  time for                                                               
the breakfast so  that children would not be late  for class. She                                                               
asked if  the program currently  provides food that  the children                                                               
can eat in the classroom.                                                                                                       
                                                                                                                                
MS.  SCHWARTZ  said yes.  Typically,  the  breakfast consists  of                                                               
something fast. Half  of the schools participate  in the National                                                               
School  Breakfast  Program  and  half use  a  volunteer  donation                                                               
program.  The latter  is having  a higher  success because  it is                                                               
offered for  no cost  for everyone. She  opined that  the funding                                                               
found  in SB  6  is vital  in  order to  offer  students a  full,                                                               
complete breakfast.                                                                                                             
                                                                                                                                
8:44:00 AM                                                                                                                    
SENATOR GARDNER asked  if some districts require  students to pay                                                               
for a portion of the cost of breakfast.                                                                                         
                                                                                                                                
MS. SCHWARTZ replied that half  of the schools participate in the                                                               
National Program where students pay full  price - $1.75 - for the                                                               
breakfast.  Some  students  are   eligible  for  a  reduced-price                                                               
breakfast for $.30 and some qualify for the free breakfast.                                                                     
                                                                                                                                
CHAIR STEVENS  asked for a rough  idea of how many  receive free,                                                               
reduced, or full-fare meals.                                                                                                    
                                                                                                                                
MS. SCHWARTZ replied  that Juneau is serving 1,300  meals per day                                                               
for free, reduced, and full-fare  meals. Half of the students are                                                               
eligible for free or reduced-price meals.                                                                                       
                                                                                                                                
SENATOR HUGGINS asked how many Title  I schools are in the Juneau                                                               
School District.                                                                                                                
                                                                                                                                
MS. SCHWARTZ said she did not know.                                                                                             
                                                                                                                                
SENATOR HUGGINS asked what the  qualifying percentage for Title I                                                               
is.                                                                                                                             
                                                                                                                                
MS. SCHWARTZ  said it is in  the 40 percent to  50 percent range.                                                               
Two  elementary schools  have  higher than  40  percent of  their                                                               
students eligible  for free and  reduced-price meals. One  of the                                                               
high schools  has 60 percent eligible.  District-wide, 30 percent                                                               
of students are eligible.                                                                                                       
                                                                                                                                
8:46:57 AM                                                                                                                    
SENATOR HUGGINS discussed  food quality in schools  as it relates                                                               
to obesity.                                                                                                                     
                                                                                                                                
MS. SCHWARTZ  responded that food  requirements are  changing and                                                               
now require healthier fare.                                                                                                     
                                                                                                                                
SENATOR HUGGINS  asked if  the federal  government is  a reliable                                                               
partner in light of the national debt.                                                                                          
                                                                                                                                
SENATOR WIELECHOWSKI said he does  not know if sequestration will                                                               
impact SB 6. He noted the  bill was originally passed by Congress                                                               
in 1946  as a measure of  national security because too  many men                                                               
were unfit for  military service due to malnutrition.  He said he                                                               
would be surprised if there were  cutbacks in this area. He added                                                               
that it is a bi-partisan issue.                                                                                                 
                                                                                                                                
8:49:48 AM                                                                                                                    
SENATOR DUNLEAVY asked a question about the cost of the program.                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI  reiterated  that  it costs  35  cents  for                                                               
breakfast and  15 cents for lunch  per student. That is  the base                                                               
amount and  it is  tied to  the funding  formula so  rural Alaska                                                               
schools  would receive  a greater  amount to  compensate for  the                                                               
much higher costs.                                                                                                              
                                                                                                                                
He  related that  the Anchorage  School District  would use  this                                                               
funding to  expand the meal  program and to increase  the quality                                                               
of the  food. Schools would  have the option  as to how  to spend                                                               
the money.                                                                                                                      
                                                                                                                                
SENATOR DUNLEAVY he asked how much the fiscal note is.                                                                          
                                                                                                                                
8:51:21 AM                                                                                                                    
SENATOR WIELECHOWSKI  replied that  the fiscal  note is  for $2.3                                                               
million per year.                                                                                                               
                                                                                                                                
SENATOR GARDNER  asked if some  schools were using  other funding                                                               
sources for the  meals program, so that SB 6  would free up those                                                               
funds to be used in other ways.                                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI said  that was correct and  noted the fiscal                                                               
gap of $7.8 million to $9 million.                                                                                              
                                                                                                                                
8:52:26 AM                                                                                                                    
DAVID NEES,  representing himself, testified in  opposition to SB                                                               
6. He questioned how reimbursements  would take place. He pointed                                                               
out in  the Anchorage School  District 22,000 of  50,000 children                                                               
are eligible  because USDA  standards for  the poverty  level are                                                               
used.  He did  not  believe  the fiscal  note  would cover  those                                                               
costs. He suggested that the  allocation for the funding needs to                                                               
come  out  of  the  money  allotted to  families  to  feed  their                                                               
children.                                                                                                                       
                                                                                                                                
8:54:59 AM                                                                                                                    
CHAIR STEVENS requested clarification of Mr. Nees' question.                                                                    
                                                                                                                                
MR.  NEES asked  if  the  schools that  receive  the funding  get                                                               
reimbursed for the children served  or for those who are eligible                                                               
for the  program. He also wondered  how much waste there  was. He                                                               
questioned the use of USDA standards.                                                                                           
                                                                                                                                
SENATOR  WIELECHOWSKI replied  that  the way  the legislation  is                                                               
written  is  to  supplement  the  cost  of  lunch  and  breakfast                                                               
provided to each  student who is eligible for a  free or reduced-                                                               
price lunch. The state produces the fiscal note.                                                                                
                                                                                                                                
MS. KLOSTER  explained that  for every meal  that is  served, the                                                               
cost is reimbursed.                                                                                                             
                                                                                                                                
CHAIR STEVENS summarized that it is based on the number served.                                                                 
                                                                                                                                
MS. KLOSTER agreed.                                                                                                             
                                                                                                                                
CHAIR STEVENS inquired about the issue of wasted food.                                                                          
                                                                                                                                
MS. KLOSTER deferred the question to Ms. Schwartz.                                                                              
                                                                                                                                
CHAIR STEVENS requested comments about USDA funding.                                                                            
                                                                                                                                
SENATOR GARDNER restated the question to ask why the program                                                                    
uses USDA levels for eligibility that are cut off at the $50,000                                                                
income level.                                                                                                                   
                                                                                                                                
MS. KLOSTER did not know.                                                                                                       
                                                                                                                                
8:58:49 AM                                                                                                                    
CHAIR STEVENS held SB 6 in committee.                                                                                           
                                                                                                                                
8:59:05 AM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Stevens adjourned the Senate Education Standing Committee                                                                 
hearing at 8:58 a.m.