SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE March 22, 1999 1:45 p.m. MEMBERS PRESENT Senator Pete Kelly, Vice-Chairman Senator Gary Wilken Senator Kim Elton MEMBERS ABSENT Senator Mike Miller, Chairman Senator Drue Pearce COMMITTEE CALENDAR SENATE BILL NO. 73 "An Act relating to assisted living homes; and providing for an effective date." -HEARD AND HELD CS FOR HOUSE BILL NO. 27(HES) "An Act relating to financial aid received for medical education and financial aid received by students participating in the Western Interstate Commission on Higher Education Professional Student Exchange Program; relating to the Western Regional Higher Education Compact; and providing for an effective date." -HEARD AND HELD SENATE BILL NO. 95 "An Act relating to the combination of grades that constitute junior high, middle, or secondary school." -HEARD AND HELD SENATE BILL NO. 98 "An Act relating to teacher tenure." -HEARD AND HELD SENATE BILL NO. 9 "An Act relating to the calculation of employee contributions and credited service in the public employees' retirement system for noncertificated employees of school districts, regional educational attendance areas, the Alaska Vocational Technical Center, and the state boarding schools; and providing for an effective date." -MOVED CSSB 9(HES) OUT OF COMMITTEE SENATE BILL NO. 105 "An Act determining the facilities constituting a school for purposes of public school funding; and providing for an effective date." -SCHEDULED BUT NOT HEARD PREVIOUS SENATE COMMITTEE ACTION SB 73 - See HESS minutes dated 3/17/99 HB 27 - No previous action to report SB 95 - No previous action to report SB 98 - No previous action to report SB 9 - See Labor & Commerce minutes dated 3/9/99 SB 105 - No previous action to report WITNESS REGISTER Ms. Alison Elgee, Deputy Commissioner Department of Administration PO Box 110200 Juneau, AK 99811-0200 POSITION STATEMENT: Commented on SB 73 Ms. Gina Macdonald, Special Projects Coordinator Department of Health & Social Services Division of Mental Health & Developmental Disabilities PO Box 110620 Juneau, AK 99811-0620 POSITION STATEMENT: Commented on SB 73 Ms. Montafaye Lane Alaska Care givers 109 E. 5th Avenue North Pole, AK 99705 POSITION STATEMENT: Commented on SB 73 Representative Eldon Mulder Alaska State Capitol Juneau, AK 99811-1182 POSITION STATEMENT: Presented HB 27 Ms. Diane Barrans, Executive Director Alaska Commission on Postsecondary Education 3030 Vintage Blvd. Juneau, AK 99899801-7109 POSITION STATEMENT: Commented on HB 27 Ms. Debbie Ossiander Anchorage School Board PO Box 670772 Chugiak, AK 99567 POSITION STATEMENT: Commented on SB 95 and SB 98 Ms. Kathi Gillespie Anchorage School Board 2741 Seafarer Loop Anchorage, AK 99516 POSITION STATEMENT: Commented on SB 95 and SB 98 Mr. Carl Rose, Executive Director Alaska Association of School Boards 316 W. 11th St. Juneau, AK 99801 POSITION STATEMENT: Commented on SB 95, SB 98 and SB 9 Senator Randy Phillips Alaska State Capitol Juneau, AK 99811-1182 POSITION STATEMENT: Presented SB 95 Mr. Michael Morgan, Facilities Manager Department of Education 801 W. 10th St., Ste. 200 Juneau, AK 99801-1894 POSITION STATEMENT: Commented on SB 95 Senator Lyda Green Alaska State Capitol Juneau, AK 99811-1182 POSITION STATEMENT: Presented SB 98 Mr. Richard Blair Northwest Arctic Borough School District PO Box 51 Kotzebue, AK 99752 POSITION STATEMENT: Commented on SB 98 Mr. John Cyr, President NEA Alaska 114 2nd St. Juneau, AK 99801 POSITION STATEMENT: Commented on SB 98 and SB 9 Mr. Don Etheridge Public Employees Local 71 710 W. 9th Juneau, AK 99801 POSITION STATEMENT: Supported SB 9 Mr. Larry Wiget Anchorage School District 4600 DeBarr Road Anchorage, AK 99519 POSITION STATEMENT: Supported SB 9 ACTION NARRATIVE TAPE 99-13, SIDE A Number 001 VICE-CHAIRMAN KELLY called the Senate Health, Education and Social Services (HESS) Committee to order at 1:45 p.m. announced that the committee would move SB 9 out today and hear public testimony on SB 73, HB 27, SB 95 and SB 98. Senator Miller had asked him to address the two pay structures in the geographic differential fiscal notes on SB 73. SB 73-ASSISTED LIVING FACILITIES Number 026 MS. ALISON ELGEE, Deputy Commissioner for the Department of Administration stated the department was asked to prepare draft fiscal notes representing one scenario that would include paying a geographic differential, and one scenario that would exclude paying a geographic differential. The four different fiscal notes in the committee packets include two from the Division of Senior Services (DSS) and two from the Department of Health and Social Services, Division of Mental Health & Developmental Disabilities. She would speak to the DSS fiscal notes, but stated the methodology is similar in both the departments' fiscal notes. At the present time the assisted living rate structure has a base rate of $30, with the department providing a geographic differential to recognize the difference in the cost of doing business throughout the state. This is done on a regional basis, with the geo-differential ranging from a zero base rate in Anchorage and Southeast Alaska to a high of 38% in the rural parts of the state. The Interior region is at 15%, Western Alaska is at 33%, with Northwestern the highest at 38%. The department presently pays a .4% differential in the Palmer-Wasilla area. The difference between the two notes marked "Draft" is the cost if the geographic differential approach is continued with the new rate structure, as proposed for a potential CS, and the cost if the geographic differential were eliminated. MS. ELGEE stated the committee needs to be aware of one anomaly that at the proposed $50 rate for the first year, the department would actually be paying less to the Northwest Alaska region than it presently pays under a $30 base rate with a differential. Number 075 MS. GINA MACDONALD, Division of Mental Health & Developmental Disabilities, agreed that the fiscal note methodology was similar. The only difference was that DHSS uses a personal allowance of $100 per person, while DOA uses a $75 personal allowance, which impacts the amount of money that DHSS needs for the assisted living home provider. She stated this needs to be clarified for a final fiscal note. Number 094 SENATOR ELTON asked the history of the rate differentials. MS. ELGEE replied she was not sure but she thought the differentials have been in place at least since the last rate adjustment in 1984. DOA uses the geo differentials for the statutory pay structure, except the pay structure includes many more differentials than these fiscal notes. The department uses a regional approach and the differential most appropriate for the region. MS. MACDONALD said she did not know the history. SENATOR ELTON commented there have been a lot of changes during the last ten years. Number 118 VICE-CHAIRMAN KELLY repeated that SB 73 would not be passing out today. Senator Miller has not seen the fiscal notes yet, and he wanted the committee to look at them today. SB 73 will be rescheduled and the committee will go through the rest of the bill at the next meeting. He said that Montafaye Lane is on-line in Fairbanks to testify on SB 73. Number 123 MS. MONTAFAYE LANE asked the committee where the state would get the money to put a general relief client she doesn't want in her assisted living home in a nursing home like Denali Center that ranges in cost from $5600 to $9000 a month, depending on the level of care. It's impossible for the small bed assisted living homes to make a living and care for these people at the Fairbanks rate of $34.50 a day. Even with the increase to $70, Alaska would still be below the national average for cost of care. "I say we need the $70 a day and we also need the differential added on because there are parts of this state where it's very high for electricity and fuel. I know, I paid $600 a month for fuel in Fairbanks." The Pioneer Homes are subsidized by the state, with employees getting insurance, retirement and vacation pay. MS. LANE said she has none of that, and also no way to recover on damages and repair bills to her home. MS. LANE emphasized that if the rate increase is not voted in, there's no way she can continue after July 1 on her budget to provide this service to general relief clients. The division has done a good job getting the providers more education and training. But she's been in the business and licensed in Alaska since 1991, and she griped about the rate then. They got a $3.50 increase, bringing it to $34.50 a day. There's been nothing since then. "Have you gone out lately and bought milk and butter? We feed these people. You guys have got to understand why we need the rate increase, and we need it now." Number 205 VICE-CHAIRMAN KELLY told Ms. Lane that Senator Miller had not seen the new fiscal note, and the three-year phase-in is just one scenario being considered. He asked her to track the bill and said that Sharon Clark would work with her. He felt the phase-in is a legitimate discussion, as well as the disparity between what it costs the state to care for these people and what the assisted living homes get paid to do it. He understood her difficulties and thanked her for her testimony. MS. LANE added she appreciates the three-year phase-in but she doesn't see that it's even a possibility. In caring for the general relief clients, the homes are saving the state thousands and even millions of dollars. If the bill passes, she could take in a client for $2,000 a month, compared to $9,000 a month-- a $7,000 a month savings for each person. She demanded, "What is the problem here?" Number 234 VICE-CHAIRMAN KELLY replied that all ideas have to work through the process, and there is progress but whether it will come out exactly as she wants it, no one can say. Everything she said is legitimate and he agrees with a lot of it, yet sixty people down here plus the Governor have to come to agreement on this bill. VICE-CHAIRMAN KELLY invited Representative Mulder to present HB 27 and said the committee would hear testimony but would not move it out today. Number 255 REPRESENTATIVE ELDON MULDER, sponsor of HB 27, explained the bill amends statute to allow student loan program monies to be loaned through the Western Interstate Commission on Higher Education, or WICHE Program, and repaid to the state of Alaska. The intent of HB 27 is to allow for Alaska residents seeking to further their education in postsecondary education through WICHE- participating schools to secure those positions within the professional student exchange program. Previously, Alaska secured positions in the health and veterinary sciences fields through participation and exchange, and the Alaskan student paid the in- state tuition fee as a resident of the other western state. The difference between that fee and the actual cost was carried by the General Fund. With recent budget constraints, Alaska suspended its participation in the WICHE Program. HB 27 would utilize the student loan program to secure those positions and make them available at a lower cost to the student, with the student paying back the portion as a loan. REPRESENTATIVE MULDER said the western states are interested in Alaska resuming its participation in WICHE and this would reopen the door for Alaskan students at a lower rate. Number 307 VICE-CHAIRMAN KELLY asked if the portion of the General Fund that previously supplemented the program would now be replaced with a loan fund. REPRESENTATIVE MULDER replied yes, and clarified there is no loan forgiveness. VICE-CHAIRMAN KELLY repeated that Senator Miller would reschedule HB 27 for action by the committee. Number 317 MS. DIANE BARRANS, Executive Director of the Alaska Commission on Postsecondary Education, said HB 27 would reactivate a program that Alaska participated in for about 20 years, prior to the elimination of General Fund support in 1994. Previously, Alaska participated in up to 14 fields in the WICHE professional student exchange program. After 1987, due to budget reductions the fields were limited to just those where access was a critical issue. The support fees the state paid on behalf of each participant were paid directly to the receiving postsecondary institutions through the WICHE administrative office. MS. BARRANS said it was grant aid, and there was no legal obligation on the part of a participant to either return and practice in the state, or to repay a portion of the support. This bill would enable the commission to utilize Alaska student loan corporation receipts to provide residents with access. However, from the corporation's perspective, as a result of this funding change the corporation would require participants to bear the entire cost of the program as a debt obligation. Under HB 27, the commission as the administrator of the funds would set the terms and conditions of the loan by regulation. Management would recommend to the commission that they consider three aspects: Alaska workforce needs, student access to graduate education, and minimizing the risk to the student loan fund. The Commission will take a position on the bill later this month at its quarterly meeting. Number 348 SENATOR WILKEN asked if line 16 on page 2 speaks to forgiveness and its connection with the medical program, and how it differs from WAMI. MS. BARRANS replied that it is WAMI. The commission identified a placement error of the current WAMI statutes that make it a loan program, in the Western Compact section of statute. It does not belong there because it's not a WICHE program. This relocates it to a more appropriate area of loan statute, and allows the professional student exchange program to be placed in 14.44. SENATOR WILKEN asked how it would differ from a regular student loan. MS. BARRANS responded the terms of the loan would have different features than the student loan program. There is no loan maximum and it would tie directly to the support fee the state will be paying on that student's behalf, ranging from $6000 to more than $20,000 per year. The commission will recommend that the corporation adopt regulations providing that interest accrue from the date the money is paid on behalf of the participant. SENATOR WILKEN asked if a student could get a $20,000 loan to buy his placement and another student loan to go to school. MS. BARRANS answered yes, the levels of debt that participants will incur will be a factor for the commission in determining which fields to lend money under this bill. She gave examples of a physician's assistant only needing to borrow $4,200 per year, as opposed to a medical student who would be borrowing nearly $23,000 a year. MS. BARRANS said, "It really is not feasible for the corporation to provide a loan of that magnitude to someone knowing that they're probably borrowing, in addition to that, $50,000 to $80,000 on average. They just could not incur that debt and repay it." She repeated that the commission would target the fields of mid- level care where there's a need in Alaska, such as Physician Assistant, Occupational Therapist, Physical Therapist, or Optometrist. These are positions allowing repayment within a reasonable amount of time. If not limited, participants would be incurring mortgage-size loans. SENATOR WILKEN questioned what the WICHE parameters would add to the student loan program monies the commission is loaning out, asking if it would be $50,000 or $250,000. MS. BARRANS answered that the loan volume at peak would be $500,000 per year, out of about $69 million this year. Number 405 SENATOR ELTON asked if the cost would be spread out to the borrowers. MS. BARRANS that the state pays dues to benefit in a variety of programs, but those would not be prorated across these participants in any way. There is a per-student fee charged under this specific program, and that fee is what the participant would incur as a debt. The commission currently pays $83,000 per year in Compact Member dues, but the state is not participating in this program right now. The benefit Alaska is receiving for these dues is through the undergraduate exchange, a WICHE program, that has 1,100 Alaskans participating and no requirement of a per-participant fee. She concluded, "If you break down that $83,000 per student, it's a very effective way of increasing educational choice for Alaskans." Number 423 VICE-CHAIRMAN KELLY announced the committee would hold HB 27 until Senator Miller's return. SB 95-SCHOOL GRADE LEVELS VICE-CHAIRMAN KELLY brought up SB 95. SENATOR RANDY PHILLIPS, sponsor of SB 95, asked if Larry Wiget was on line. Mr. Wiget responded that he was, as well as school board members Debbie Ossiander and Kathi Gillespie who wish to testify. Number 437 SENATOR PHILLIPS discussed the school overcrowding problem facing Anchorage. Currently Chugiak High School is badly overcrowded, with space for 1750 students and attendance at 2100 students. The dilemma is whether to add more rooms or build a new high school. The wish of the community is to have a second high school, but DOE's regulations don't allow for that. There are two middle schools, Gruening at capacity, and Mirror Lake under capacity. This bill was recommended by the Anchorage School District in order to adjust the overcrowding situation with the middle/junior high school, but more importantly, with the high school. SENATOR PHILLIPS pointed out that the three committee members present are experiencing expanding high school populations. He stated this legislation is one option to maintain student levels and still deliver a quality high school. MS. DEBBIE OSSIANDER, Anchorage School Board member, testified in support of SB 95. It would allow school districts necessary flexibility in order to maximize student achievement. National research shows that grouping the middle school configuration of 6th, 7th and 8th grades has academic and social benefits by promoting achievement and dealing more effectively with student discipline matters. This configuration of grades is a trend in urban districts in Alaska. Right now regulations penalize school districts if they decide to house 6th-7th and 8th grades in middle schools, by considering 6th graders as elementary students who qualify for a smaller square footage. MS. OSSIANDER said the logic of housing these grades in one building and saying one group of kids needs less room than another totally escapes her. The DOE fiscal note appears to assume that all 6th graders will be moved into the middle school model, but that's not the Anchorage school board's expectation. The fiscal note also appears to assume the state will reimburse all school construction. The regulations penalize districts if they have housed 6th-7th and 8th grades together in the past by not qualifying for the additional school construction they will need in the future. The school district believes SB 95 would be very helpful. Number 489 MS. KATHI GILLESPIE, Anchorage School Board member, repeated that instructionally school districts in Kenai, Juneau, Anchorage and Mat-Su are moving toward the 6th-7th-8th middle school model. Last year in the Foundation Formula re-write, the per-pupil allocation did away with the designation between elementary and secondary students. Operating cost is not the problem; it is the amount of square footage these kids have when they are still designated as elementary or secondary students. The school board wants flexibility to decide if 6th graders are more appropriately put in an elementary or a secondary school, and to be allowed by the state to deliver a secondary program with more square footage, several teachers, and more music and P.E. MS. GILLESPIE concluded that the issue is statewide in scope and there are schools out of compliance with DOE regulations. Number 510 MR. CARL ROSE, Executive Director, Alaska Association of School Boards, stated the association supports SB 95 and feels the flexibility and provision of local control in determining if a school district wants to use a 6-7-8 model is appropriate. SENATOR ELTON asked Mr. Rose if the schools now having the 6-7-8 model are illegal, and if they aren't, why the bill is needed. Is it just an issue of square footage for students? MR. ROSE replied that clarification may give school districts the opportunity to exercise a choice that may be restricted right now. School districts may be hindered in moving in this direction, and those already employing these strategies may be in noncompliance. The association would like assurance that the square foot advantage for the 6-7-8 model would be recognized. Currently if a new school is being built including a 6-7-8 model, the district does not receive credit for those 6th grade students because they're not included in the secondary classification. Number 531 MR. MICHAEL MORGAN, Facilities Manager for the Department of Education, responded to a couple earlier comments. Currently the school districts have the choice to combine grades almost any way they choose. From the department's perspective it's strictly a square footage issue. If they do a combination of 6th-7th and 8th graders, they get credit for the 6th graders, but not at the same rate as the 7th and 8th graders. There is a differential on the amount of square footage between the two. The fiscal note is the most conservative estimate and does not assume that all square footage will immediately become eligible for replacement for 6th graders; if that were the case, the fiscal note would double. VICE-CHAIRMAN KELLY asked if the fiscal note is $126 million dollars. MR. MORGAN replied it is. The fiscal note doesn't take into account the on-going future increases, only the immediate need based on district populations. It doesn't consider the increase in future maintenance costs at the larger facilities, or the increase in maintenance and operation costs that will accrue to districts. Last year the department gave the Anchorage School District more flexibility through a regulation change passed by the State Board of Education allowing communities the choice to 100% fund facilities. There is a provision to not have that square footage counted against them as the department looks at eligibility for additional state-funded square footage. Number 554 SENATOR WILKEN asked if Mr. Morgan is saying 6th graders are counted as one head each, but only get 106 square feet instead of 150 square feet. MR. MORGAN answered yes. VICE-CHAIRMAN KELLY asked if the fiscal note refers to $126 million extra dollars for the new schools that would be built under the new scenario in the next fiscal year. MR. MORGAN replied yes, if the projects were funded. MS. OSSIANDER admitted she did not clearly understand Mr. Morgan's comments. In reference to the chart, she asked if he said the state would 100% fund all projects submitted to it. MR. MORGAN responded that the chart assumes the state would fund these projects at the 70% level. SENATOR PHILLIPS added that it assumes the local government votes for the bonds, as well. MR. MORGAN clarified it looks at either of two programs: funding local bonds, or grants to municipalities which are funded at the 70% level. Chugiak needs to put the proposed new high school on the ballot in the Anchorage area with a 70%-30% funding split. The community cannot support a super large high school, because the 600 extra students now overcrowding the Chugiak H.S. are not enough to warrant another high school. Consequently, he is looking for another configuration, which DOE's regulations prohibit. The intent is to let the local voters vote on the bond package. VICE-CHAIRMAN KELLY asked how many schools the $126 million fiscal note assumes would be going to bond election next year. MR. MORGAN said they only looked at the number of students that would qualify for the square footage. TAPE 99-13, SIDE B Number 583 MS. GILLESPIE repeated the school district needs flexibility in how it applies the dollars funded by the Legislature to a local project. MR. MORGAN explained the department looks at the total area in evaluating square footage. The Eagle River-Chugiak area has elementary school capacity for about 600 students. The Mirror Lake middle school has capacity for 400 students. The high school has an overcapacity of 100 students. He asserted they have an overcrowding problem because they put the 6th graders in the middle school. SENATOR PHILLIPS disagreed with Mr. Morgan, stating the high school is way overcapacity and it's more than 100 students. MS. OSSIANDER said the focus should be that the Legislature has control over funding, and the school district believes instructionally a middle school program is better for the 6th graders than a traditional elementary program. In other words, build to meet the instructional needs of the kids. SENATOR WILKEN asked why the fiscal note refers to 150 square feet while the others list 43.75 square feet. Mr. Morgan replied that currently they show no eligibility for additional square footage for 6th graders. If 6th graders are to be secondary students, none of the elementary space would be counted that is currently counted. If no elementary space is counted, these 6th graders would qualify for the full 150 square feet. SENATOR ELTON asked if Juneau, which has the 6-7-8 configuration was built under the existing square footage rules. MR. MORGAN said he didn't know. The current regulations came into effect in early 1996. Prior to that time, the space guidelines were not in regulation. The department took the existing guidelines for elementary, secondary, and K-12 schools for different sized schools with a high, medium and low range. The medium guidelines were put into regulation. VICE-CHAIRMAN KELLY stated the committee would hold SB 95 until Senator Miller returns. SB 98-TEACHER TENURE TAPE 99-13, SIDE B Number 538 VICE-CHAIRMAN KELLY brought SB 98 before the committee. SENATOR LYDA GREEN, sponsor of SB 98, explained that several years ago HB 465 was amended on the Senate floor to contain a portability of tenure clause. The amendment relates to a teacher in one district who is not dismissed, but either resigns or moves to another district and within 12 months applies for a teaching job. If hired, the new school district would have only one year to review that teacher. Several school districts are concerned about this provision. Some have made mistakes with hiring, and others have found they're very reluctant to hire a transferring teacher because there is inadequate time for evaluation. This has led to decisions and layoffs that would have been avoided with a longer evaluation time. SB 98 restores the situation that existed before HB 465 and the portability of tenure for teachers from another district. Number 510 RICHARD BLAIR, Personnel Officer for Northwest Arctic School District, Kotzebue, expressed the administration's support for SB 98 if it amends AS 14.20.150(d) so that tenure is not portable to other districts. MR. LARRY WIGET, Executive Director of Public Affairs for Anchorage School District, explained that Ms. Ossiander had to leave and he would present the testimony for the district. The school board requests the Legislature amend AS 14.20.150(d) to repeal portability of tenure. All districts need time to evaluate whether a newly hired teacher will be a proper match for the district and will meet specific district standards. Evaluation of past performance becomes difficult due to the absence of a clear, statewide teacher evaluation standard. If a teacher becomes tenured after one year, it becomes difficult for the district to remove poorly skilled teachers. MS. KATHI GILLESPIE, Anchorage School Board member, described the retirement incentive program that has caused the hiring of over a thousand new teachers over the last two years in the Anchorage school district. Less than 2% of those new teachers have come from districts where they were tenured in Alaska. The board feels portability works against applicants tenured in Alaska who wish to move to another state district, because they should have equal consideration with other teachers from out of state. The district supports SB 98 which would give incentive to hire from within the state as well as without. Number 473 MR. CARL ROSE, Executive Director of the Association of Alaska School Boards, spoke in favor of SB 98. He handed out a survey relating to portable tenure of teachers applying and being hired in Alaska. Of a total of 593 applicants surveyed, excluding the Anchorage School District, only 70 teachers with tenure, or 11.8%, were hired. The issue of portability of tenure works against teachers, especially during times of teacher shortage. The evaluation period is only about six-months, not even a full year. MR. ROSE concluded this is a high risk proposition in hiring qualified people. MR. JOHN CYR, President of NEA-Alaska, stated that the association representing about 11,000 education employees statewide does not support SB 98. HB 465 came into effect in August 1996 and radically changed the way teachers are evaluated, and standards for teachers. HB 465 was the result of a series of compromises. Statewide evaluation systems have been set up that work. Before HB 465, tenure was achieved at the beginning of the 3rd year; now it's the beginning of the 4th year. In the past there were three real reasons for dismissal: substantial noncompliance, immorality, or incompetence as defined by case law. Now, we still have noncompliance and immorality but the issue of incompetence is gone. Dismissing a teacher, tenured or not, is now based on a much lower standard, the "failure to meet conditions of a plan of improvement." NEA was not happy when these provisions came into effect, which it views as an erosion of basic employment rights. Districts now have 3 years to evaluate a teacher, where before it was 2 years, and it is much easier to dismiss. NEA is helping to set up evaluation procedures, or measurable plans of improvement, in many districts, in conjunction with the Administration. The portability of tenure evaluation procedure has only been in place since July 1, 1997; now less than 2 years later, the Legislature is trying to fix something NEA doesn't perceive as a problem. MR. CYR asked that teachers be evaluated fairly, and when needed, placed on plans of improvement quickly, stating "Nobody wants those teachers in classrooms any longer than necessary." The hiring procedures are rigorous, and if districts aren't hiring tenured teachers, he feels it has more to do with the funding in those districts than with tenure. SENATOR WILKEN asked how Mr. Cyr reconciles his testimony with that of AASB which made a strong case that portability of tenure is hurting teacher placement, not helping. MR. CYR responded that before HB 465 was passed, you'd find nearly the same statistics. It begs the question to say we can no longer hire tenured teachers because there's not enough time to evaluate them. Teachers who get hired are newly out of college. There's been a lot of hires in urban areas because of the state-sponsored RIP, with many new untenured hires from rural Alaska. Number 378 SENATOR ELTON asked Mr. Cyr if he's heard from the NEA membership that the net effect of HB 465 has been that they can't transfer from one district to another. MR. CYR replied, not at all. The net effect of HB 465 has been to put in place real evaluation procedures. SENATOR ELTON asked why an evaluation can't be done in one year. He is bothered by extending tenure from 2 to 3 years, allowing a bad teacher to stay longer. MR. CYR said evaluations should be done in a timely manner, or the teacher put on a plan of improvement. That is the primary responsibility given to administration, and it grates on him to hear that it takes more time to evaluate. MR. ROSE said it's not only an issue of evaluation to get the best teacher into the classroom, it's one of professional development. A three year period of time is appropriate. In cases where an employee will not make the grade it must be determined early to stop the process. On one hand, time is a factor because the pressure on administration is tremendous. The survey matrix shows teachers with tenure who do not get the opportunity with only six to nine months of evaluation to get hired in a new school district. HB 465 was an omnibus bill that tried to address quality performance, accountability and fairness. SB 98 recognizes that you can regain tenure in a school district you've already worked in for one year, where people already know you. If they rehire you, one year is an appropriate time period. For a district that doesn't know you, six to nine months is not enough time. VICE-CHAIRMAN KELLY said the committee would hold SB 98 and hear more testimony from Senator Green and others at a later meeting. SB 9-PERS CREDIT FOR NONCERTIFICATED EMPLOYEES VICE-CHAIRMAN KELLY brought up SB 9 . Number 301 SENATOR WILKEN stated SB 9 recognizes the classified employees in school districts who are the janitors, custodians, and support staff. Teachers have 12 months retirement contributed for every 9 months they work, and after 30 years of teaching, receive a full 30 years retirement. However, the classified people only receive 9 months each year toward retirement. Two years ago, the classified employees approached Representative Brice and said they would pay for the difference. This bill provides for that, with a zero fiscal impact on the school districts and on the state, and a minimal $70.0 first year start up cost. SB 9 recognizes that the classified employee can choose to contribute toward their own retirement after 30 years, with the extra 7.5 years paid by the employee with his own money, and prorated over their 9 months of normal employment. Number 268 MR. JOHN CYR, NEA-AK stated appreciation of Senator Wilken's willingness to introduce SB 9. His association has worked a long time to get this legislation which they strongly support. MR. DON ETHERIDGE, Public Employees Local 71, stated that the union wholeheartedly supports SB 9. Their membership working in the school districts has been urging this legislation for many years. MR. LARRY WIGET, Executive Director of Public Affairs, Anchorage School District, expressed the district's support of SB 9. MR. CARL ROSE, AASB, stated the association supports SB 9. SENATOR WILKEN moved to adopt CSSB 9(HES), Version D Cramer. Without objection, it was adopted. SENATOR WILKEN explained the CS changes the title and line 11 on page 1, by adding the special education service agencies (SESA), eleven certified people who work to fund and place disabled people in the school districts. They are classified and part of the PERS system, and SENATOR WILKEN agreed with their inclusion in the bill. SENATOR WILKEN moved to report CSSB 9(HES) out of committee with individual recommendations and a fiscal note. Without objection, it was so ordered. The committee adjourned at 3:00 p.m.