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SB36
- 1. Senate Bill 36 Urban vs. Rural School Financing William Olmstead
- 6. REAA Funding by District Comparing Old Formula to SB36 (after size adjustment)
- 11. Is there an urban/rural divide? YES! But mostly in the Senate. The Senate has repeatedly passed bills that would have had a great impact on the bush, only to have them modified by the House.
Editor's Notes
- Two theories of legislative action All work for common good Each works for interests Neither worked here. Allow extremists to set boundaries and never will get good legislation -- all effort spent in getting back to center Phillips, Wilken, Taylor, Torgerson Sponsors 1st bill -- Raised local contributions for all NS would pay all of its ED costs and also pay state Firestorm of protest Sponsors looking for other ways to accomplish goals. Need “authority” to deflect charges of racism, so paid for a study.
- Background on contract: Contract limited their review -- Told to look at size and location (instead of “do size and location matter?”) Told to NOT look at how much is needed - only going to reallocate the existing pie Recommendations surprisingly support every suggestion made by Senators in 1997 State workers get as much as 42% extra for Barrow, Kotzebue -- based on regular cost of living studies. DEED says “Wrong!” -- teachers hard to recruit and keep.
- DEED thought this was a rotten idea Why give a school 2 teachers where one can teach 20 students in grades K-8? Senate’s example was along lines of : 3 schools of 200 students each would count 816, while one school of 600 would count 655. No discussion of how school definition would affect matters.
- Aleutian Region has 3 schools and 57 students in three separate villages. Limiting them to one school cuts their budget by $219,969 (or would but for Supp. Floor) Amended last year 750 -- 425. Helped one district.
- Averaged a loss of 12.9%; state average was 1.2% loss.
- Kake is a remote Native village (144 of 166 students are Native) on an island with no airport. Its DCF is 1.025. Does it really only cost 2% more for fuel and utilities in Kake than in Anchorage? Nenana’s DCF is 1.270, while Fairbanks’ is 1.039. It costs 23% more to run schools right on the Parks Highway? Klawock is another Native village on an island. Its DCF is 1.017, while Mat-Su’s is 1.010. DEED and McDowell agree in 2001 that they cannot update the figures, and must start from scratch: Need to study elements of cost -- state has issued contract -- not McDowell
- Raises specter of cutting optional programs -- Saw bilingual taking away from gifted in Juneau
- McDowell did not recommend and said a bad idea; DEED agreed. A $100k super. Would be $250 per students in Aleutian Region SD, but only $2 in Anchorage. Only Anch, Mat-Su, Juneau, & Sitka have met. REAA average is under 52%
- DEED is pushing to eliminate erosion provisions and reinstate hold harmless.
- Wilken was talking about taxing people who marginally are in the cash economy. Torgerson’s comment was about a district going from $10,000 to $8,000 per student (without floor funding)
- REAA schools are 18% white, so 82% non-white Saying “they’re lying, so we can ignore them”?? Wilken talking about North Slope He was motivated as prime sponsor by problems with getting F-banks to approve a bond issue. Ignores that operating and capital budgets are unrelated. Also only “very little” if defined in terms of percent of taxable base.
- Municipalities affected by Senate proposals: only those with huge tax base (read North Slope, where 4 mill=$50 million, 100% of basic need=$38 million)
- Final version met Phillip’s idea of fairness -- Anchorage has around 38% of kids and got 36.5% of the new money.
- State and Feds paid for enrollment growth, municipalities paid for inflation Average teacher salary down 17% (constant dollars)
- Offset by $6MM (2000-01) and $12 MM (2001-02) learning opportunity grants, which are for one year only.
- Senators fond of saying that we spend 31% of our budget on education, implying that we don’t need to increase the pie. Only true if you ignore all the items that are “off budget” like inflation proofing the permanent fund. Other states spend a greater percentage.