Association of Alaska School Boards

 

Legislative Bulletin

 

A weekly digest of activity by the Alaska Legislature and U.S. Congress for AlaskaÕs School Board Members. AASB Tel. 907-586-1083, Fax 907-586-2995. Executive Director, Carl Rose, crose@aasb.org; Editor, John Greely, Review past issues of the Bulletin on the AASB website at http://www.aasb.org. To unsubscribe send an email requesting the same to jgreely@aasb.org

 

This bulletin is distributed by email only. School districts should copy for board members not online.

 

February 16, 2007

 

--HOUSE COMMITTEE INCREASES TRS ANTE BY $77 MILLION

--AASB FLY-IN UNITES SCHOOL DISTRICTS ON EDUCATION FUNDING

--SENATE CLEARS 07 SPENDING MEASURE FOR DOMESTIC AGENCIES

--EDUCATION BILLS UP FOR HEARINGS NEXT WEEK

 

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HOUSE COMMITTEE INCREASES TRS ANTE BY $77 MILLION

 In a move to lower school district salary costs for retirement benefits, a House committee voted Thursday to add $77 million to an early-funding bill for K-12 education.  The $1.4 billion appropriation (HB 97) now includes funds for the state foundation program, pupil transportation, retirement costs, the District Cost Factor and School Improvement Grants.

 

The vote by the House Health, Education & Social Services Committee would provide a total of $248 million to the Department of Administration for the TeachersÕ Retirement System (TRS) in Fiscal Year 2008.  Gov. Sarah Palin had requested about $170 million to fund the increased retirement costs school districts under TRS and $37 million for school employees covered by PERS (the Public EmployeesÕ Retirement System).

 

 An aide to Rep. Peggy Wilson, R-Wrangell, the HESS committee chair, said one affect of the additional $77 million would be to lower the average rate of employer contributions for TRS next year to 12.56 percent from 26 percent.  The 12.56 rate is comparable the new defined-contribution retirement tier now in effect for new hires.

 

 ÒThe $77 million (to the Department of Administration) is equivalent to about $400 in the Base Student Allocation,Ó said Becky Rooney, the committee aide. ÒBy adding this to the TRS line, we free up that much money for districts to put to other needs.Ó

 

 The TRS appropriation is contained in a larger appropriation bill  (HB 97) requested by the governor for K-12 schools. HB 97 will now be considered by the House Finance Committee, which is scheduled to take testimony Tuesday on HB 1, raising the Base Student Allocation.

 

 In the Senate, a measure raising the Base Student Allocation by $430, from the current $5,380 to $5,810, has been the subject of public testimony. SB 1 is in the Senate Special Committee on Education.

 

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AASB FLY-IN UNITES SCHOOL DISTRICTS ON EDUCATION FUNDING

 More than 100 education leaders attended the AASB Leadership Academy and Legislative Fly-in on Feb. 10-13, taking the opportunity to discuss key education issues at the Capitol.  The participants, including school board members, superintendents and students, heard remarks from legislative leaders, including House Speaker John Harris and Senate President Lyda Green, and then visited with the other 58 legislators over two days.

 

 AASB Executive Director Carl Rose said the Fly-in provided member districts the chance to reinforce positions adopted at the Annual Conference in November. ÒThe discussions we had this week focused our requests to the legislature for improving public education,Ó Rose said.

 

 The following points of agreement were presented to legislators as they consider overall school funding:

 

  1. Base Student Allocation – Increasing the BSA from the current $5,380 to $5,810, effective July 1, 2007 (SB 1)

 

  1. District Cost Factor – Increasing the DCF to the levels recommended by the 2005 ISER Report (HB 72)

 

  1. Retirement costs – Funding the $207 million in FY 08 PERS-TRS cost increases for districts outside the foundation formula

 

  1. Vocational Education – Recognizing the importance of a dependable funding stream for voc-ed outside the 20 percent block grant for special education, bilingual education and voc-ed

 

  1. Intensive Needs Students – Addressing the problems caused by inadequate formula funding, post-enrollment transfers and conflicting state regulations defining intensive needs

 

  1. Early or Forward Funding – Appropriating foundation funds & PERS-TRS costs by March 16 (the 60th day) or setting aside sufficient funds in FY 08 to forward fund FY 09 education budget

 

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SENATE CLEARS 07 SPENDING MEASURE FOR DOMESTIC AGENCIES

 Half-way through the federal fiscal year, Congress has given final approval to a budget for most domestic agencies, including the U.S. Department of Education. Sent to the President for his signature was a measure giving minimal increases to the major programs affecting public schools in Alaska, including Title I and IDEA (special education).  Title 1 was increased by $250 million in FY 07, while IDEA was increased by $200 million, leaving both programs well below the funding levels authorized by law.  For more information, click here:

http://www.govexec.com/story_page.cfm?articleid=36140&printerfriendlyVers=1&

 

For more information on Title 1 and IDEA funding deficits, click here:

http://www.nsba.org/site/docs/40000/39977.pdf

 

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EDUCATION BILLS UP FOR HEARINGS NEXT WEEK

 

Tuesday, Feb. 20, House Finance Committee

   1:30 p.m. HB 1 Increase the Base Student Allocation

 

Thursday, Feb. 22, Senate State Affairs Committee

    9:00 a.m. SB 35 Appropriate $1 billion to Public Education Fund and other accounts