MINUTES SENATE FINANCE COMMITTEE 28 February 1998 10:10 a.m. TAPES SFC-98, #55, Sides A and B CALL TO ORDER Senator Bert Sharp, Co-chair, convened the meeting at approximately 10:10 a.m. PRESENT In addition to Co-chairman Sharp, Senator Parnell was present and Senator Adams was present via teleconference from Anchorage. Senator Torgerson and Senator Phillips arrived shortly thereafter. ALSO ATTENDING: Senator Gary Wilken; Senator Jerry Ward; Senator Lyda Green; Debbie Ossiander, president Anchorage School Board; Carl Rose, president, Association of Alaska School Districts; 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 convened the meeting and continued public testimony on SB 36. He noted a three-minute time limit so that everyone would have a chance to testify. He announced a public number for call-ins other that from LIO's and gave the address and fax number for written testimony. Senator Adams via teleconference from Anchorage asked about further coverage on SB 36. Co-chair Sharp said that today would conclude the last day of public testimony. There would be further hearings, "listen only" teleconference and they would also be available on Gavel-to-Gavel. The following individuals and from what city they testified follows: CHARLES MASON via teleconference from BARROW, personnel director, North Slope Borough School said he felt that the press conference yesterday was "everyone write a check". ADELINE HOPSON via teleconference from BARROW, said the bill would take away money from the Bering Strait school. She opposed the McDowell Study, saying it was flimsy. Co-chair Sharp asked that she fax in her written testimony. A.M. JOHNSON via teleconference from KETCHIKAN, school board member from Ketchikan said he would also fax in further testimony. He asked that their facilities and teachers be visited. WILLIAM MESSMER via teleconference from WRANGELL, president, Wrangell school board opposed SB 36. TONNIE BARLOW via teleconference from WRANGELL, member, Wrangell school board member, said there were problems with the McDowell study. She opposed SB 36 and said that there needs to be a lot more work done. Co-chair Sharp concurred and indicated there will be many more hours spent on the bill. BOB CHRISTAL via teleconference from ANCHORAGE, president, Anchorage school district, said they were the largest school district in the State. There needed to be an increase in funding for education. FRED GIDDING via teleconference from ANCHORAGE, school principal said an equitable rewrite should be found to provide proper funding. He thanked Senator Parnell for visiting his school. Senator Parnell responded briefly to Mr. Gidding. DAVE WERDAL via teleconference from ANCHORAGE, parent and member Anchorage school board said they had the highest class size in the State and they were the only district not fully reimbursed for transportation. GLEN MARUNDE via teleconference from TOK, opposed SB 36. The children of the State were being held hostage with this bill. He said he favoured Statewide sales tax be imposed for education. Co-chair Sharp said he voted three times against incorporation into a borough from his district but still it became a borough. DAN BECK via teleconference from DELTA JUNCTION, commented on deferred maintenance for schools. TOM ARMOUR via teleconference from YAKUTAT said this would be a district that would be hit hard. Alternative solutions should be sought. ELI HANLON via teleconference from YAKUTAT, assembly member from Yakutat, opposed SB 36. SHARON SWOPE via teleconference from YAKUTAT said this plan was not a simple one. It should be made inflation-proof. Perhaps everyone should go back to the drawing board. ANNE KILKENNY via teleconference from MAT-SU, said more money was needed for funding. LELA AYERS via teleconference from MAT-SU, said more money was needed all around, but others should not be deprived. LIEF KENNY JOHNSON via teleconference from MAT-SU, eight years old, testified against SB 36. He said he attended Snowshoe Elementary School in Wasilla. JOHN CYR via teleconference from MAT-SU, president, NEA- Alaska, said he would like to work with everyone concerned to get the best for Alaska's children. DEBBIE OSSIANDER, president, Anchorage School Board, was invited to join the committee. She noted severe overcrowding in the Anchorage classrooms. She applauded the McDowell Study, noting the foundation re-write was critical. LOU MATHESON via teleconference from KOTZEBUE, superintendent, Northwest Arctic Borough School, said he opposed SB 36 and also the McDowell Study. He noted that there had been an inflation increase but funding for education had not increased. BOB JONES via teleconference from KENNY LAKE, concurred with Lou Matheson from Kotzebue. He said teachers at Copper River school had had one raise. He said families living in rural Alaska paid a premium for this life-style. HELEN OLSEN via teleconference from TOK, said she felt it was a mistake to incorporate Tok and Delta schools and felt there would be an impact on how the school would operate. She said she was very concerned about SB 36. REVA SHIRCEL via teleconference from FAIRBANKS, said SB 36 was unfair to rural Alaska. Education was a high cost to native children. DEBRA MULLINS via teleconference from KENAI, said they must try to fix this very bad formula. Things should be equitable for all districts. PATRICK HICKEY via teleconference from KENAI, commented on special needs in his area such as bilingual need and voc tech need. ROD HOEGH via teleconference from ELIM, principal, Elim School (Nome), opposed SB 36. SHARON SUARVY-LIVINGSTON via teleconference from UNALASKA, board president, Unalaska School District, said there was not enough money to help rural schools. Teachers have done their part, however, they cannot continue to provide quality education at the same funding. HOLLIE SAGER via teleconference from UNALASKA, business manager for Unalaska School District, said this bill was unfair to rural Alaska. The Legislature should make the appropriate revisions. JOHN WEISE via teleconference from AKIACHAK, superintendent Yupik School District, noted high poverty in his district. Children were still attending old BIA schools. There was no state school building. In 1980 they organized into an REAA, the State promised to help out and they were still waiting. There should not be an imposition of tax on poverty level people. (Tape #55, Side B, changed to tape #56, Side A.) DAVID S. COMBS via teleconference from ANCHORAGE, said funding should be increased. MICHAEL TAVELLA via teleconference from ANCHORAGE, said there was a lack of funding for education in the State. Anchorage was receiving less than their quota. JIM COX via teleconference from ANCHORAGE, principal, Girdwood School said the bill was a step in the right direction. GEORGE WIRT via teleconference from ANCHORAGE, member, Anchorage assembly, said there must be a re-work of the funding formula. KATHLEEN WIGHT-MURPHY via teleconference from MAT-SU, said they did not want to benefit at the cost of other districts' loss. There was a misconceived idea that rural Alaska was sitting on tons of money. There should be rural school improvement and the State should be putting more funding in. Co-chair Sharp asked that Ms. Wight-Murphy bring any suggestions with her when she came to Juneau. LISA BEZENEK via teleconference from KETCHIKAN, supported SB 36. She said there should be more funding in the whole pie. Co-chair Sharp said there was a hesitancy to put more money into an already unfair distribution. It has to be made more equitable. Senator Phillips, referring to the press briefing yesterday, said the foundation formula in its present form was not working. Senator Adams via teleconference, concurred funding formula was not correct. They must also consider Federal funding. VERA SHOES via teleconference from FORT YUKON, said that each child had a right to education. (Much of conversation was unintelligible due to break up on line.) RICHARD CARN via teleconference from NAPAKIAK, parent and teacher, said there were many inconsistencies behind the intent of the bill. He urged the members to support education. Senator Wilken said he appreciated the public participation and thanked all those who did. ADJOURNMENT Co-chair Sharp recessed the meeting at approximately 12:10 p.m. He said at 8:30 a.m. the committee would commence discussion regarding the bill, continue again at 4:30 p.m. and also Wednesday morning at 8:30 a.m. SFC-98 -5- 2/28/98