Association of Alaska School Boards

Legislative Bulletin

A weekly digest of activity by the Alaska Legislature and U.S. Congress for
Alaska’s School Board Members. AASB Tel. 907-586-1083, Fax 907-586-2995.
Executive Director, Carl Rose crose@aasb.org; Editor, John Greely. Review
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January 13, 2006

--EDUCATION BILLS INTRODUCED THIS WEEK
--GOVERNOR PROPOSES PAY INCENTIVES TO RAISE STUDENT SCORES
--AREA COST FACTOR CHANGE STILL IN DISCUSSION STAGE
--EED BUDGET HIGHLIGHTS
--FLY-IN SET FOR FEB. 11-14

EDUCATION BILLS INTRODUCED THIS WEEK

With a budget surplus estimated at $1.2 billion, the 24th Alaska Legislature
convened its second session on Jan. 9th. The immediate debate was about the
wisdom of spending the entire surplus, including $400 million on state
ownership of a North Slope gas pipeline.

Gov. Frank Murkowski formalized his announcement to the AASB annual
conference that he would support an increase of $90 million to the K-12
foundation formula program. The increase would boost the base student
allocation (BSA) from $4,919 to $5,352, if sponsor substitute for Senate
Bill 1, by Sen. Gary Wilken, R-Fairbanks, were to pass. Wilken introduced on
Monday his substitute bill to change the BSA. An identical bill, HB 362, was
introduced by the governor today (Friday).

The governor also unveiled the outline of a new program –The Alaska School
Performance Incentive Program (see details below). The outline said the
program would award bonuses to a school’s administrators, teachers and
support staff if a substantial number of students show more than a year’s
academic growth as measured by scores on the states standards-based
assessments. Even before the formal introduction of the legislation, some
members of the Senate Finance Committee indicated they preferred funding the
program under the $90 million increase in foundation support proposed by the
governor.

Among the education-rated bills introduced this week were:

HB 312 (Weyhrauch) Fetal Alcohol Syndrome effects and prevention
HB 332 (Gara) Teacher bonus/parent involvement/oil corp. taxes
HB 333 (Gara) Preschool standards/funding by oil tax
HB 340 (Gara,Guttenberg) Tuition grants funded by oil/gas taxes
HB 342 (Neuman, Lynn) Correspondence study programs
HB 345 (Weyhrauch) Raise school attendance age to 17
HB 348 (Gruenberg) Require CPR for high school graduation
HB 357 (Wilson) Statutory references to disabilities (change from
handicapped)
HB 362 (Governor) Increases base student allocation from $4,919 to $5,352
HB 364 (Governor) Alaska School Performance Incentive Program
HB 367 (Governor) Appropriations for K-12 and other education programs

SS SB 1 (Wilken) Increase base student allocation from $4,919 to $5,352
SB 204 (Wagoner) Pupil-teacher ratio for grades 1-3
SB 230 (Governor) Appropriation for K-12 and other education programs
SB 235 (Governor) Alaska School Performance Incentive Program


GOVERNOR PROPOSES INCENTIVES TO RAISE STUDENT ACHIEVEMENT

Members of the Senate Finance Committee indicated their support this week
for a plan by the Murkowski administration to institute monetary incentives
for schools showing improvements in student academic performance, as
measured by standardized test scores. Dubbed the Alaska School Performance
Incentive Program, the idea was announced on Tuesday in the Governor’s
annual State of the State Address. The next day, Commissioner of Education
and Early Development Roger Sampson briefed the seven-member Finance
Committee on the plan’s outline.

“The Alaska School Performance Incentive Program is intended to encourage
everyone on a school’s staff to collaborate and take share responsibility
for all students, use instructional time effectively, and use the results of
standards-based assessments to target students’ academic needs,” Sampson
said in a news release.

The plan includes bonuses of $2,500 to $5,500 for certificated staff and
$1,000 to $2,500 for non-certificated staff, depending on how much growth
students have shown on assessments. Superintendents would be excluded from
the bonuses, but other central office staff could qualify for the bonuses as
well, Sampson said.
The bonuses, to be excluded from collective bargaining and retirement
calculations, would be distributed by the state, not individual school
districts.

Sampson estimated the bonuses would total between $3 million and $15 million
a year. That prompted several members of the Finance Committee to suggest
the funding should be included within the $90 million foundation formula
increase proposed by Murkowski. Sen. Wilken wondered aloud whether the
incentive program might be started as a pilot project in only a few school
districts.

“I am so committed to this idea, I am open to anything,” the commissioner
replied.

The formal bill, HB 364, was referred to the House Special Committee on
Education, the Health, Education and Social Services (HESS) Committee and
the Finance Committee. An identical bill, SB 235, was referred to the HESS
and Finance Committee.

AREA COST FACTOR CHANGE STILL IN DISCUSSION STAGE

A legislative task force heard appeals this week from six school districts
to change the area cost factor contained in the foundation formula program
for K-12 schools, a move that could increase state support beyond the $90
million increase proposed by the Murkowski administration. At a hearing on
Thursday, Jan. 12, the Joint School District Costs Task Force was told that
recommendations in a 2005 study by the University of Alaska’s Institute of
Social and Economic Research (ISER) should be implemented to keep rural
districts competitive with urban schools.

“We are in direct competition with other districts when it comes to hiring
teachers,” said Dave Jones, finance director for the Kodiak Island Borough
School District.

Jones and others testifying via teleconference noted the foundation formula
had not been changed since passage of SB 36 in 1998.

“The intent of SB 36 was to provide equitable funding to school districts,
and to do that we need to update the cost factors,” Jones said.

Melody Douglas, finance director of the Kenai Peninsula Borough School
District, said that even with a base student allocation increase proposed by
the governor, her district would face a $3 million deficit next year. The
Matanuska Susitna Borough School District is looking at a deficit of $2
million next year, despite the proposed increase in the BSA, said Kim Floyd,
a district spokeswoman.

“We would be very supportive (of a change in the area cost factor) if you go
above the $90 million,” said Floyd.

One scenario being studied by the task force would implement the ISER
recommendations over two years. If contained within the $90 million
increase proposed by the governor, change would cost Mat-Su another $2
million, Floyd said.

“This pits urban versus rural districts,” she said.

Sen. Con Bunde, R-Anchorage, a member of the task force said full
implementation of the ISER recommendations would cost $90 million alone.
When urban districts are held harmless and the governor’s proposal for
increasing the BSA are included, the total increase could approach $200
million a year, Bunde said.

Sen. Gary Wilken, R-Fairbanks, also a task force member, questioned the
accuracy of the ISER report, saying its conclusion that rural teacher
salaries should be increased did not jibe with other studies of why they
leave their teaching positions.

Task force chair Rep. Mike Chenault, R-Nikiski, said he wanted to move this
year to implement the ISER recommendations because “the longer we go, the
more money we add to the formula, the wider the disparity.” He said the task
force would continue to meet, but no date was set for a hearing.

EED BUDGET HIGHLIGHTS

The Murkowski administration is requesting just $4.5 million for school
improvements in FY 07. After the major commitment to school construction in
FY 06, including about $275 million in general fund and expanded bond
reimbursement authorizations, the governor has focused his capital budget
spending on transportation projects and a proposed natural gas pipeline
equity.

Included in the FY 07 budget is $2.5 million for upgrades and repairs at the
state-operated Mt. Edgecumbe High School and $2 million to expand and
maintain the boarding school at Galena. The latter is a project the
governor promised after the Department of Defense announced plans to close
its air base at Galena.

A separate $50,000 appropriation is also included in the budget to demolish
and restore the site of the Northern Lights School, a now closed facility on
the Elliot Highway.

EED has received requests from school districts for $583 million in school
construction grants and $291 million in major maintenance projects.

Although not exclusively school projects, the governor’s budget does include
$5 million in loan authority for the Alaska Housing Finance Corp. to build
new teacher, health and public safety housing, and $6 million to construct
“supplemental” housing projects. A separate $1.2 million in federal highway
funds is earmarked for “safe routes to schools.” The Department of
Commerce, Community and Economic Development is also requesting $50,000 to
improve the skating park at Taku Elementary School in Anchorage.

AASB FLY-IN SET FOR FEB. 11-14

The 2006 Leadership Conference and Legislative Fly-In is scheduled for Feb.
11 to 14 at the Baranof Hotel in Juneau. An exciting list of speakers has
been assembled under the theme of “Enlisting the Public’s Help in Making
Children Alaska’s Top Priority.” From the opening session of the Youth
Advocacy Institute on Saturday to the closing visits to legislative offices
on Monday and Tuesday, this year’s Fly-in promises to be very valuable for
school board members and superintendents. For more information, see this
webpage:
http://aasb.org/Calendar/sprflyin.html


QUOTE OF THE WEEK

“As we enter the last year of our first term, I believe Alaskans would agree
that our administration’s legislative program for education is the most
successful of any governor.”
Gov. Frank Murkowski, State of the State Address