MINUTES SENATE FINANCE COMMITTEE 27 February 1998 4:35 p.m. TAPES SFC-98, #53, Sides A and B CALL TO ORDER Senator Bert Sharp, Co-chair, reconvened the Senate Finance Committee at approximately 4:35 p.m. PRESENT In addition to Co-chairman Sharp, Senators Phillips and Torgerson were present. Senator Adams participated via teleconference from Anchorage. Senator Parnell arrived shortly thereafter. ALSO ATTENDING: Senator Gary Wilken; Senator Lyda Green; Representative Terry Martin; Carl Rose, President, Association of Alaska School District; Bob Ward, City Manager, Skagway, Alaska; Dave Tonkovich, Fiscal Analyst, Division of Legislative Finance; and aides to committee members and other members of the Legislature. VIA TELECONFERENCE: Senator Al Adams, Anchorage; see following list of those participating via Statewide teleconference. SUMMARY INFORMATION SENATE BILL NO. 36 "An Act relating to transportation of public school students; relating to school construction grants; relating to the public school foundation program and to local aid for education; and providing for an effective date." Co-chair Sharp reconvened the committee and outlined the procedure for taking of public testimony. There was a three-minute time limit placed on testimony so that everyone around the State would have a chance to testify. He noted the committee would accept faxes and written statements mailed in. In the order individuals testified and from what City follows: MARIANNE GROSS via teleconference from HOMER, president of the Kenai Peninsula School Borough, said she opposed the bill. FRED REEDER via teleconference from SITKA, described how devastated they were in the school. Janitor, bus and food services were contracted out; kindergarten was closed. He said enough money should be allotted for education. SENATOR ADAMS via teleconference from ANCHORAGE interjected at this point his concern about the press conference during the afternoon and the fact that there were only three people present. Senator Phillips responded that it was not a press conference, but rather a press briefing. BOB PRICE via teleconference from ANCHORAGE, maintenance director, Anchorage school district, felt the problem was Statewide and the entire funding formula should be looked at. ED EARNHART via teleconference from ANCHORAGE, said there needed to be more changes and reforms in education. There was a lot up in the air and it would be a big sweat for next year. ARGE JEFFREY via teleconference from ANCHORAGE, executive director, elementary education, Anchorage school district, thanked Senator Phillips for bringing bill forward, noting there needed to be a proper balance in funding. He supported SB 36. CAROL COMEAU via teleconference from ANCHORAGE, assistant superintendent for instruction, Anchorage school district said they were expecting approximately eight hundred new students in September. Problems they had to deal with were aging facilities, the diverse school population and minority and special needs students. LINCOLN SAITO via teleconference from BETHEL, was an educator for many years in the State. He felt there were many inequities and these should be corrected in order to provide the best education for all students. WILL UPDEGROVE via teleconference from BETHEL, board secretary, Lower Kuskokwim School. He opposed SB 36. ANDY GURNEY via teleconference from NULATO, single parent and lived twenty-seven years in Nulato. He is a member of the local school board and opposed SB 36. He suggested that perhaps a state tax would be a good idea, or a cap of $1,000 be put on the Permanent Fund, the rest going to education. MISSY BURMAN (ph) via teleconference from WISEMAN, opposed SB 36. BILL BURROWS via teleconference from FAIRBANKS, president, Fairbanks Board of Education said they had the lowest cost per student in the State. He did indicate that special education needs more funding and also felt the State should provide the funding for mandated services. HARRY MARTIN via teleconference from UNALAKLEET, Bering Straits School District, felt there was no rural representation in the preparation of the McDowell Study. He had concerns regarding pages 1, 67 and 73 of the study. Senator Phillips said he would send the information and hoped that would answer his questions. LEONA CHERALTE (ph) via teleconference from UNALAKLEET, asked the committee to reconsider the urgency to move SB 36. She felt the foundation formula should be fully funded. ED MCLAIN via teleconference from KENAI, assistant superintendent, Kenai Borough School District. He noted the schools service native Russian, Alaska Native and townspeople a very diverse population. He said the Kenai schools were in the same situation as Ketchikan. They need help and appreciate the hard work of the Legislature in trying to sort this out. RICHARD MAUER via teleconference from DELTA JUNCTION, school board member, felt that SB 36 was bad faith bargaining. There were some good aspects to the bill; others were appalling. He said it was a duty to provide decent education for all students. PATRICIA RESCH via teleconference from DELTA JUNCTION, said the bill devastated them. She opposed SB 36. MIKE FARRAR via teleconference from DELTA JUNCTION, referred briefly to a phone conversation with Senator Phillip's office. He encouraged an employment tax rather than mill levy. Even though he has no children in school he had no objection to doing his share. WOODY WILSON via teleconference from WRANGELL, superintendent Wrangell School, said that while classes were increasing services were being reduced or eliminated. There were fewer teachers to more students. Hardest hit in the funding squeeze was school nurses. JANELL PRIVETT via teleconference from WRANGELL, on Wrangell School board. She felt that with the loss of the mill and closure of the cannery the devastated community of 2,300 was not being allowed equal education possibilities. ROBERT PRUNELLA via teleconference from WRANGELL, on Wrangell School Board opposes SB 36. DENNY WEATHERS via teleconference from CORDOVA, said she felt SB 36 was unconstitutional. TOM NICHOLS via teleconference from BARROW, said he was impressed with the quality of the North Slope school. He also called to the committee's attention the fact that even though the school had a swimming pool it served as a reservoir for fire suppression. MARIE CARROLL via teleconference from BARROW, North Slope Borough Mayor, hoped a solution could be found where everyone could gain. JOHN KUNIK via teleconference from GLENNALLEN opposed SB 36. HARRY TERMIN via teleconference from GLENNALLEN opposed SB 36. JANE BROWN via teleconference from GLENNALLEN opposed SB 36. DON TAYLOR via teleconference from GLENNALLEN opposed SB 36. (Tape changed from #53, Side B to #54, Side A.) ANDREA MCCLELLAND via teleconference from ANCHORAGE, on special education advisory board, supported SB 36. She also noted that Senator Halford was present at the Anchorage LIO. MARK PASIER via teleconference from ANCHORAGE, special assistant, Anchorage School District superintendent, said that Anchorage had many diverse students. He supported SB 36. GEORGE TIBBETT from BRISTOL BAY via teleconference from ANCHORAGE, said that State foundation monies were on the decline and that something should be done. He said children were our future. JOHN KITO via teleconference from Anchorage, opposed SB 36. JOHN BILLINGS via teleconference from GALENA, opposed SB 36. BART MUAREY via teleconference from GALENA, opposed SB 36. JOHN ALCHAK via teleconference from CHEVAK, opposed SB 36. Young people are the leaders of tomorrow. PHILIP TITUS via teleconference from MINTO, opposed SB 36. DARELL DARLAND via teleconference from DELTA JUNCTION opposed SB 36. He said that with this bill the State was holding a threat over unorganized boroughs. PATRICK SCHLICHTING via teleconference from DELTA JUNCTION, said SB 36 was indecisive and unfair. Delta Junction should not be combined with the Gateway School. KATHI GILLESPIE via teleconference from ANCHORAGE, legislative chairman, Anchorage school board, felt that there should be more money allocated for education. FRD STOFFLET via teleconference from ANCHORAGE, supported SB 36 and thanked the committee for dealing with this issue. JILL WATERS via teleconference from ANCHORAGE, supported adequate funding of education for all children. BOB WARD, Mayor City of SKAGWAY, testified in Juneau. He said the City opposed SB 36. He said the Skagway superintendent also served as principal. With any cuts the school secretary and teachers would be laid off; and as a result residents would have to leave the community. It was not a question of how funds were distributed, but rather that there were enough funds available. ADJOURNMENT Public Statewide testimony was concluded at this point and Co-chair Sharp noted that Senate Finance Committee would meet again at 10:00 a.m. tomorrow. At 7:05 p.m. the meeting was adjourned. SFC-98 -5- 2/27/98