SENATE STATE AFFAIRS COMMITTEE  January 27, 2000 3:33 p.m. MEMBERS PRESENT  Senator Jerry Ward, Chairman Senator Lyda Green Senator Randy Phillips Senator Kim Elton MEMBERS ABSENT    Senator Gary Wilken COMMITTEE CALENDAR  SENATE BILL NO. 196 "An Act relating to selection of members of the planning commission for a first or second class borough." -MOVED SB 196 OUT OF COMMITTEE SENATE JOINT RESOLUTION NO. 26 Proposing amendments to the Constitution of the State of Alaska relating to education. -HEARD AND HELD PREVIOUS SENATE COMMITTEE ACTION    SB 196 - No previous Senate Action SJR 26 - No previous Senate Action WITNESS REGISTER  Dale Bagley Kenai Peninsula Borough Mayor 144 Binkley St. Soldotna, AK 99664 POSITION STATEMENT: Supports SB 196 Larry Wiget Executive Director of Public Affairs Anchorage School District 4600 Debarr Anchorage, AK 99501 POSITION STATEMENT: Opposes SJR 26 Loretta Brown Chief of Staff to Senator Ward Alaska State Capitol Juneau, AK 99801 POSITION STATEMENT: Commented on SJR 26 ACTION NARRATIVE  TAPE 00-01, SIDE A  Number 001 CHAIRMAN WARD called the Senate State Affairs Committee to order at 3:33 p.m. Present were Senators Ward, Phillips, Elton, and Green. The first order of business to come before the committee was SB 196. SB 196-MUNICIPAL PLANNING COMMISSION  Number 085 MR. DALE BAGLEY, Kenai Peninsula Borough Mayor, explained that sometimes the planning commission tends to be an extension of the mayor. SB 196 allows a municipality to choose to elect planning commission members rather than have them be appointed by the mayor. The commission members would then become responsible for their actions. CHAIRMAN WARD asked if giving this option to municipalities will make for better government. MR. BAGLEY stated that is correct. SENATOR ELTON asked why legislation was chosen as a solution since the appointment process can be changed by ordinance. MR. BAGLEY said Title 29 allows for appointed commissioners only, therefore it needs to be amended to allow for elected or appointed positions. SENATOR ELTON stated that commissioners can be appointed by the assembly without any changes to State law. MR. BAGLEY said currently, the mayor's appointments are confirmed by the assembly, usually without any controversy. Number 285 SENATOR ELTON asked if any analysis or research has been done on the additional cost to a municipality or borough. He expressed concern that very few people may want to campaign for that office which will make the elective process a more expensive way for a municipality to fill those seats. MR. BAGLEY stated that he had not done a cost analysis, but the election should be part of a normal municipal election. Municipalities have service area boards, hospital service area boards, senior service area boards, and so on. He expects more interest in the planning commission board and the advisory board seats. CHAIRMAN WARD asked if elected positions are optional or mandatory. MR. BAGLEY said it will be within the rights of the municipality to choose. SENATOR GREEN moved SB 196 from committee with individual recommendations. SENATOR ELTON objected and explained that the legislature needs to expand the ability of local governments to make these kinds of choices themselves. He said he needs to hear the desires of other municipal officials. He noted he spoke with Alaska Municipal League and was told that this has never been a problem before. SENATOR ELTON maintained his objection. The motion carried with Senators Green, Phillips, and Ward voting "Yea," and Senator Elton voting "Nay." SJR 26-CONST. AM: EDUCATION FUND  MS. LORETTA BROWN presented SJR 26 for Senator Ward, the sponsor. SJR 26 proposes amendments to the Alaska Constitution related to education. This legislation offers a common sense approach to funding and improving Alaska's educational system. SJR 26 establishes a land trust to fund education and allows for the funding of private, as well as public, schools by establishing a voucher system that favors school choice. The goals of the voucher system are to enhance educational opportunities and to promote more competition and quality in the delivery of educational services. MS. BROWN explained that SJR 26 creates an endowment trust to ensure adequate future funding for education. It will provide for the use of revenues from the land trust to pay the operational costs of education from kindergarten through the university level. The trust would be entitled to 100 percent of any income derived from land sales, leases, contracts, licenses or other uses for the granted land. Not only would SJR 26 ensure the financial future of Alaska's schools and provide for school choice, but it will create new jobs and stimulate economic development as resources of the trust are developed. Number 725 MR. LARRY WIGET, Executive Director of Public Affairs for the Anchorage School District and the Anchorage School Board (ASB), urged policy makers to oppose efforts to use public tax dollars to finance private home school vouchers. The ASB urges policy makers to work with local communities to ensure that the State's public schools provide world class educational opportunities. The ASB believes taxpayer funded vouchers for private or home school tuition and fees drain resources from public school classrooms and diminish revenues for public schools. The ASB has not discussed the endowment that the bill proposes to create. CHAIRMAN WARD stated that it is not his intention to pass the bill out at this time. He modeled SJR 26 on the Steve Cowper Endowment Trust Fund concept, which uses a five million acre entitlement from the State of Alaska to fund K-University programs. Number 885 MR. WIGET said that it has been a while since the ASB has looked at endowment issues. He will take SJR 26 back to the ASB for further discussion. SENATOR ELTON said that people are interested in an endowment approach but committee members have different views on how it should be started. SJR 26 ensures that the endowment is not just for public schools; it is for private schools as well. The bill provides for both public and private elementary and secondary schools, yet only a public university. He asked why the endowment will not fund private universities as well. Number 1009 CHAIRMAN WARD stated that it seems like the University of Alaska needs the most support. His intent is to give choices to parents. SENATOR ELTON and CHAIRMAN WARD briefly discussed using endowment funds for both public and private school use. Chairman Ward was in favor of the idea, Senator Elton was not. Number 1128 SENATOR PHILLIPS requested that Chairman Ward consider private universities also. CHAIRMAN WARD said he was looking at the issue purely from a financial standpoint because the University has asked for land grants to provide a steady revenue stream. Chairman Ward announced he would hold SJR 26 in committee. There being no further business to come before the committee, CHAIRMAN WARD adjourned the meeting at 3:53 p.m.