Capital Budget & Explanation of Education Funding in SB 182

Here is a link to the capital budget: http://www.legis.state.ak.us/PDF/27/Bills/SB0160C.PDF.  This is the House Finance version: HCS CSSB 160(FIN).  It was amended on the floor of the house with the addition of $25 million for revenue sharing, but that version is not available on line yet.  Once you pull up the bill, you can do "find" search within it to quickly find specific projects.

Here is SB 182, the education funding package: http://www.legis.state.ak.us/PDF/27/Bills/SB0182C.PDF 

The fiscal notes for the bill have details on how much funding each district will get for the individual provisions of the bill:

Fiscal Note #3: http://www.legis.state.ak.us/PDF/27/F/SB0182-3-4-041412-EED-N.PDF shows how much increased state contribution for education a municipality will get for going to a flat mill rate of 2.65 for required local contribution.  This provision has the most widely varying effect on districts - for those municipalities already funding to the cap, there will be no benefit to the school, although there will be a benefit to the municipality.  For those already at the low end of the local contribution mill rate, there won't be as much benefit, and for REAA's there will be no impact.  For municipalities not funding to the cap, there would then be more money available at the municipality's discretion, should they decide to increase educuation funding.  For instance.....

Governor Parnell Signs FY 12 Capital & Operating Budgets with Vetoes

Governor Parnell released the final operating and capital budgets and held a press conference to discuss his vetoes on Wednesday, June 29. Budget documents are on the Office of Management & Budget website: http://omb.alaska.gov/html/budget-report/fy-2012-budget/enacted.html  

Governor Parnell made $400 million in vetoes to the capital budget and said declining oil production and unfunded pension liability make fiscal discipline important. He is working on increasing oil production, and said that until someone else has a better plan, he will continue to pursue his plan to increase production. Tax incentives for Cook Inlet are working, and that’s what he wants to do for the North Slope.

Governor Parnell said the capital budget focuses on energy, infrastructure, and job creation. There are lots of good projects, and vetoes made on projects this year may be funded next year. He also looked at regional balance, and said he did not retaliate against legislators in his vetoes. He did not want to spend more this year than was spent last year. Just under $300 million remains in the capital budget for education projects. The top 14 projects on DEED’s major maintenance list made the cut (just under $20 million in funding). Funding for school construction grants was cut from a total of $76.5 million to just under $62 million. Construction funds for the Kivalina School were cut, but that project was contingent upon the community moving to a safer location. There is over $1 billion for energy projects.

Governor Parnell said there is 2.9 percent growth in the operating budget, which is primarily the result of statutorily mandated programs. The operating budget fully funds legal obligations of the state, including school formula funding, Medicaid costs, and unfunded pension liability. The annual payment on the unfunded pension liability escalates yearly, and is an issue the ARM Board will have to address. He said the majority of the vetoes he made in the operating budget related to decreasing debt service. The state is legally mandated to pay for most of the items in the operating budget, so it was harder to make cuts.

In terms of savings, the state will have over $15 billion in various savings accounts with the signing of these budgets, including $400 million in the Alaska Performance Scholarship fund, $400 million in the PCE fund, and $1 billion in forward funding for education.

For full details on education funding, see the Wednesday, June 29 and Thursday, June 30 issues of the Alaska Education Update.

Governor Parnell's Budget Vetoes Imminent; Possible Special Session on Coastal Zone Management

Governor Parnell's budget vetoes are due by Friday, July 1, and his goal is to cut about $400 million from the capital budget, decreasing it from $3.2 billion down to $2.8 billion. I predict he will wait until the deadline to release his vetoes because there is still talk of a last-minute deal and special session on coastal zone management. If he releases his vetoes while the legislature is in special session, they could vote to override the vetoes.

Here's an update of all the education-related legislation that passed:

HB 15 - Student Athlete Concussions: Signed by the governor on Friday, May 27; effective date 8/25/11 http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20%2015&session=27

HB 108 - Operating Budget: Transmitted to the governor on Wednesday, June 8; vetoes due back on Friday, July 1 http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20108&session=27

HB 109 - Mental Health Budget: Transmitted to the governor on Wednesday, June 8; vetoes due back on Friday, July 1 http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20109&session=27

HB 155 - Public Construction Contracts, awaiting transmittal to the governor (raises the threshold for public works projects from $2,000 to $25,000 for before projects have to pay wages under Alaska's Little Davis-Bacon Act)  http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20155&session=27

SB 1 - Board of Education & Early Development Report/Legislative Task Force, Signed by the governor on Friday, May 27; effective date 8/25/11 http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20%20%201&session=27

SB 46 - Capital Budget: Transmitted to the governor on Wednesday, June 8; vetoes due back on Friday, July 1 http://www.legis.state.ak.us/basis/get_bill.asp?session=27&bill=SB46

SB 76 - Supplemental Budget, Signed by the governor on Tuesday, May 17; see bill for effective dates 
http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20%2076&session=27

SB 84 - Vocational Education/Tax Credits/Pilot, awaiting transmittal to the governor
http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20%2084&session=27

Recent Legislative Action (and Inaction) on SB 1, SB 46, SB 84, and SB 97

There wasn't much education action on Saturday. Senate Finance is hearing a lot of bills, but they are not moving very many bills out of committee this morning. There are a lot of bills on today's Senate Calendar.

Education Action Saturday:
The senate concurred with the house changes to SB 1 (DEED report to the legislature; task force on theme-based education), and it goes next to the governor (http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20%20%201&session=27).

The house passed SB 84 (vocational education funding factor; the BSA increase was removed from the bill) by a vote of 40 yeas. SB 84 was returned to the senate. The senate has not yet concurred with the changes made by the house (http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20%2084&session=27).

That was the only education-related action that occured on Saturday.

Education Action for today, Sunday:
There is no education-related legislation on the House or Senate Calendar today, however, it is the time of session when they may have supplemental calendars later in the day.

There is no education-related legislation scheduled for committee hearings. House Finance has SB 46 - Capital Budget, on their schedule, pending referral (http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20%2046&session=27). However, it will have to move from Senate Finance and pass the senate before they hear it. Budget negotiations between the house, the senate, and the governor remain ongoing.

Most members of the house majority seem opposed to any increase to the BSA this year, but there may yet be some sort of an increase outside the BSA, perhaps through SB 97 http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20%2097&session=27 

Legislative Action, Friday, April 15

The house passed two bills:
HB 104 – Alaska Performance Scholarships - Passed by a vote of 40 yeas
http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20104&session=27

SB 1 – Board of Education & Early Development Annual Report - Passed by a vote of 39 yeas, 1 nay
http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20%20%201&session=27

The Senate Passed:
HB 15 – Student Athlete Concussions - Passed by a vote of 20 yeas
http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20%2015&session=27

The House Education Committee heard a presentation from the Bristol Bay Borough School District and heard and held:
HB 143 – Adjust Base Student Allocation: Inflation
http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20143&session=27

There is still a bottleneck right now with the senate and the house negotiating on a few issues. It appears they've got Coastal Zone Managment taken care of just now. The house was in session until late Friday night with their first supplemental calendar, passing a coastal zone management bill: HB 106 http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20106&session=27 . I know that's an important issue to a lot of people.

I have been told by several legislators that there is still hope for some sort of funding increase for education. Carl Rose said in the House Education Committee Friday morning that since 1978, the money spent on education has lost 65 percent of it's value due to inflation. That's an astonishing amount of value, and it's no wonder schools are struggling. When I think back to my kindergarten days in the early 70's in Juneau, there were perhaps 14 children in my class, with both a teacher and a teacher's aide. I know kindergarten classes are up in the low 20's in many areas now.

It is up in the air when SB 46 - the capital budget and SB 97 - aid for municipalities and school districts might be heard. SB 97 has been noticed in House Finance, so they could, if they choose, bring it up at any time. SB 46 has been noticed in both the Senate and House Finance Committees, so it could be brought up at any time as well.

I have no idea whether the legislature will adjourn by Sunday evening or not. They would have to reach agreement very quickly, and suspend a Uniform Rule, so it looks unlikely.

A Quick Recap of Monday's Action

There was a lot of action Monday on education issues, in addition to release of the Capital Budget by the Senate Finance Committee.  It is the intent of the Senate Finance Committee that Section 13 of the capital budget (SB 46, http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20%2046&session=27) be considered as a single investment in grants for school construction around the state.  The governor originally requested $20 million for major school maintenance.  The Senate Finance Committee substitute funds an additional $250 million for school construction and maintenance, and clears every single project off DEED's major maintenance list.  Also included is funding for three schools to help settle the Kasayulie Case.  Total education funding in SB 46 is $397.5 million.  Send me an email, and I'll forward you my report on all the education items in the Senate Finance Committee Substitute. 

HB 6 - Removing a Regent: passed the house by a vote of 39 yeas, 1 absent. HB 6 was transmitted to the senate.  http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20%20%206&session=27

HB 15 - Student Athlete Traumatic Brain Injury: heard in and moved from House Judiciary Committee with a committee substitute. The Judiciary Committee substitute says that the person who clears an athlete to return to play must be certified in the evaluation and management of concussions, and must certify in writing or electronically that they are qualified. Reps. Lynn, Gruenberg, Thompson, Holmes, Pruitt, and Gatto recommend do pass. Rep. Keller made no recommendation. HB 15 is on the House Calendar for today.  http://www.legis.state.ak.us/basis/get_bill.asp?bill=HB%20%2015&session=27 

HJR 16 - Constitutional Amendment: Education Funding: was heard in and moved from the House Judiciary Committee to the House Finance Committee. No changes were made to the resolution. Reps. Lynn, Keller, Pruitt, Thompson, and Gatto recommended do pass. Reps. Gruenberg and Holmes recommended do not pass. http://www.legis.state.ak.us/basis/get_bill.asp?bill=HJR%2016&session=27

SB 1 - Board of Education & Early Development Annual Report: heard in and moved from the House Finance Committee. No changes were made to the bill. Reps. Fairclough, Tammie Wilson, Gara, Joule, Neuman, Costello, Edgmon, Stoltze, and Thomas recommended do pass.
http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20%20%201&session=27

A Few Tidbits from the Past Week

The Senate Finance chairmen have emphasized several times lately that they anticipate a healthy capital budget this year. Among the items they suggested may be considerd for increased funding are deferred maintenance and DEED items and energy projects in both urban and rural Alaska to decrease the cost of energy and increase dependability.

I've also got a new bill I'm following that could affect school districts. SB 100 would require employers who terminate some or all positions in PERS to pay termination costs, and the bill is retroactive. I think the intent is to make sure the PERS unfunded liability does not increase due to the actions of any one employer.

I've been in communication with Michael Lamb of the Fairbanks North Star Borough about the bill, and he wrote, "The whole district doesn’t have to withdraw to be impacted, a single position could cause an impact. If a smaller district only had one nurse, as a real example, and they had to cut that position, they’d be subject to a termination study. If they accepted some grant funds that they then hired some classroom aides, that weren’t certified TRS teachers, but simply PERS employees, when those aides went away because the grant money was gone then those salaries not being paid any longer could be subject to termination study impacts. Districts are not only TRS employers, they are also clearly PERS employers and there is no exception in the law for them. I think they simply do not understand the potential peril they are in. If a district never makes an adjustment to their employee structure then perhaps they’ll never be impacted, but if they do, they are not exempted." The bill is up for a hearing in the Senate Labor & Commerce Committee on Tuesday, March 29.

There was some discussion about education issues during the press conferences on Thursday, March 24, but it was just a recap of stuff that's happened in committee hearings. The big issue during the two press conferences, in my opinion, is the governor's proposal for cutting oil taxes. There seems to be mixed opinion on whether the governor's proposal will actually lead to any new development or not, with opinion leaning toward the side that there does not seem to be much guarantee of new development with the governor's plan. Considering the state would lose up to $2 billion in revenue annually, the governor's plan is causing concern for many people.

Also, in Senate Finance on Thursday, $380,000 in additional funding was added to Best Beginnings, so the total funding for that program is now at $980,000, which is what the program was funded at for FY11.

Fountains, Alaska State Museum

Does anyone remember the fountains at the Alaska State Museum in Juneau?  I'm sad they are no longer there.  My brother and I loved playing in them when we were kids.  Here is a photo I found on VILDA http://vilda.alaska.edu/

Alaska Budget Vetos, June 3, 2010

Governor Parnell signed HB 300, HB 302, and SB 230 into law on Thursday, June 3. He said the capital budget passed by the legislature was significantly larger than his proposed budget. Final education funding and a list of vetoes is contained in the Alaska Education Update, June 3, 2010 edition.

Governor Parnell said that in talking to legislators, he found that all the small school projects included in the capital budget are school district priorities, but that they would never rise to the level of being funded without earmarks from the legislature. So earmarking by legislators is an appropriate method for funding those projects. He said that legislators know what the priorities of their districts are better than he does.

There is a new web tool on the State of Alaska website with a map showing projects by geographic area:
http://gov.alaska.gov/parnell/press-room/2010-budget/budget-map.html

Current Status of Passed Legislation

Most education-related legislation that passed the legislature is still awaiting transmittal to the governor.  At the end of April, Legal Services had considerably over 100 bills it was still working on enrolling (checking for errors, ommissions, and correct form).

After Legal Services completes enrollment of legislation, it has to be signed by the Speaker of the House and the President of the Senate, and then it is sent to the governor. Speaker Chenault is.....

Sine Die

The Twenty-Sixth Alaska State Legislature adjourned their second session early in the morning on Monday, April 19.   A new legislature will convene on Tuesday, January 18, 2011 at 1:00 p.m.  The Senate Bipartisan Working Group held a press availability at the end of session.  Both the House and the Senate ran past midnight on the 90th day, for the first time since the 90-day session limit was enacted.

Sen. President Gary Stevens said they have an analysis on the issue from legislative attorneys that says they can go past 90 days.  Legislative attorneys have told them that if anyone sued, the legislature would probably win.  He said.....

HB 424 - G.O. Bonds for Education/Library/Research Facilities

The Senate Finance Committee just moved HB 424 with a committee substitute.  The bill is on the Senate Calendar. 

Miles Baker, staff to Sen. Stedman said the only change in the committee substitute is the removal of an appropriation to the state bond committee of $4.766 million to pay expenses related to the issuance and sale of bonds. Funding for that item was added to SB 230 - Capital Budget and pulled out of HB 424.

Recent Action

Friday:
HJR 24 - Federal Lunch Program/Military http://www.legis.state.ak.us/basis/get_bill.asp?session=26&bill=HJR24  was permanently filed as Legislative Resolve 32.

SB 235 - Charter/Alternative School Funding http://www.legis.state.ak.us/basis/get_bill.asp?session=26&bill=SB235  The Senate concurred with the House amendments to the bill and it is awaiting transmittal to the Governor.

Saturday:
SB 220 - Energy Efficiency/Alternative Energy http://www.legis.state.ak.us/basis/get_bill.asp?session=26&bill=SB220  was moved from House Finance today and is on today's calendar

SB 221 - Legis. Task Force: Higher Ed/Careers http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20221&session=26  was moved from House Finance today and is on today's calendar. House Finance added a section creating an Alaska merit scholarship program. This is an item that the Governor was threatening to call a special session on. HCS CSSB 221(FIN) establishes the merit scholarship program.  The task force established by the bill will investigate possible funding mechanisms over the interim and make recommendations to the next legislature on how to fund the program. The section establishing the scholarship program basically follows the governor's criteria for the different levels of scholarship.

SB 230 - Budget: Capital, Supplemental, & Other Appropriations http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20230&session=26  is scheduled for today's House calendar, pending release from the House Finance Committee.

House Finance Releases New Version of Capital Budget

House Finance just released a new version of SB 230 - Capital Budget.

http://www.legis.state.ak.us/basis/get_documents.asp?session=26&bill=SB230

Senate Floor Debate on SB 230 - Capital Budget

So much for posting every day until the end of session!  Oh dear!  How about a posting on yesterday's floor debate on the capital budget?

SB 230 – Budget: Capital, Supplemental, & Other Appropriations

http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20230&session=26

The Senate passed CSSB 230(FIN) 19 yeas, 1 nay. Sen. Bunde voted against the bill. SB 230 has been transmitted to the House and was referred to the House Finance Committee. It is scheduled for a hearing on Wednesday, April 14 at 8:30 a.m. (See the “Saturday, April 10, 2010 CSSB 230(FIN) AKEDUPDATE” for a list of education-related projects.)

Sen. Bunde offered an amendment to remove many of the projects in SB 230. He thought a more appropriate place for the projects was in a bond package. The Finance Committee co-chairmen disagreed. Sen. Stedman said.....

SB 230 - Capital Budget Update

Senate Finance adopted a new committee substitute for SB 230 and passed the bill out of committee Saturday evening.  The biggest change in the new cs is a new section adding $380 million in G.O. bond projects, $360 million of which are for education projects. 

G.O. Bond Education Projects:.....

Education-Related Items in CSSB 230(FIN)

Major Maintenance:
• $1,700,000 – Mt. Edgecumbe deferred maintenance
• $84,337 – Nome Beltz Jr./Sr. fire alarm replacement
• $29,807 – Nome Beltz Jr./Sr. emergency generator auto switch replacement
• $1,202,914 – Metlakatla High School Renovation Alternates
• $1,762,541 – Whittier K-12 sprinkler install & interior renovations
• $123,701 – Yup’ik Voc Ed Building water service & boiler replacement
• $80,729 – Yup’ik Voc Ed Building roof replacement
• $21,306,131 – Service High School renovation
• $180,491 – Mosquito Lake Elementary mechanical upgrades

DOT/PF:
• $200,000 – Debarr Road school zone
• $1,100,000 – Fritz Cove to Auke Bay, including school intersection improvements
• $1,000,000 – Safe Routes to Schools (statewide)
• $4,000,000 – Sand Point: School Loop Road Rehabilitation
• $800,000 – Sitka: Cross Trail construction – High School to Baranof, Charles, Yaw, and Pherson Streets

DCCED Grants to Recipients:
• $300,000 – Copper River School District – Copper River Connects
• $800,000 – Toksook Bay Early Learning Center
• $140,000 – Yukon-Koyukuk School District – Jimmy Huntington High School Mold Remediation
• $520,000 – Mears Middle School Locker Replacement
• $1,140,000 – Salcha Elementary School Exterior Envelope Replacement & Upgrade
• $430,000 – Ticasuk Brown Elementary School Septic System Replacement
• $990,000 – Galena City School District Central Steam Plant Upgrade
• $100,000 – Trapper Creek Elementary School Roof Replacement
• $1,000,000 – Valdez High School Fire Alarm/Sprinkler Replacement

NPRA Impact Grants:
• $251,243 – North Slope Borough School Counselor Grant

Reappropriations:
• $12,000 – Chatham School District, for equipment purchases and upgrades (reappropriated from Chatham School District van purchase)
• $37,500 – Chatham School District, for projects, equipment, and improvements for Angoon Schools (reappropriated from Angoon road grader)

Other:
• $500,000 – Service High School Football Field Turf Design and Construction
• $500,000 – South High School Artificial Turf Field Design and Construction
• $20,000 – Central Middle School Stage Floor Refinishing, and Projector Screen, Sound System, and Curtains Replacement and Installation

HB 424 - G.O. Bonds for Education Projects

HB 424 – G.O. Bonds for Education Projects, By the House Finance Committee

Introduced today, HB 424 provides for the issuance of general obligation bonds in a principal amount of not more than $1,000,000 for the purpose of paying the cost of education projects for public schools and the University of Alaska. The bill specifies that $500,000 will be appropriated to DEED for public school projects, and $500,000 will be appropriated to the University of Alaska for university projects.

During the afternoon portion of today’s House Finance Committee meeting, Chairman Stoltze said that the $1,000,000 in HB 424 is just a place-holder amount, and will not necessarily be the final amount in the bill.

HB 424 was referred to the House Finance Committee, and is scheduled for a hearing on Thursday, April 8 at 9:00 a.m.

A few notes on current action:

The House is adjourned until Monday, so I guess they are taking an Easter break. Even though the Senate passed HB 300 - Operating Budget on Tuesday, they waited until the House adjourned on Thursday before transmitting the bill back to the house, thereby postponing when the 24-hour rule will kick in. Probably that will happen Monday.

Sen. Hoffman said in floor discussion on SB 237 that there will need to be some minor changes made to the bill in the house in order to accomodate rural areas not in REAA's and not able to fund school facilities through bonding. So I believe the legislature is going to try to cover every possible situation in the state with this bill. That will make a lot of people happy, I am sure!

Rep. Doogan said in his weekly newsletter today that there is rumored to be a bond proposition in the works. Projects supposedly under consideration for the proposition include the UAF Life Sciences Facility, a gym in Anchorage (The UAA Sports Arena?), a new state library/archives/museum facility in Juneau, and several schools in rural Alaska. I'm guessing those would be schools in Alakanuk, Kipnuk, and Napaskiak.

I will try to post updates every day between now and the end of session.
Shana

SB 237 - School Construction Debt Reimbursement on Senate Calendar Thursday, April 1

Big news, an important bill is moving: SB 237 is on the Senate Calendar for tomorrow, Thursday, April 1. 
http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20237&session=26