Prior Updates - Week of:   

 Action necessary:
► Print and distribute this message to colleagues and friends.
► Send an e-mail to your lawmakers and ask for an adequate increase in K-12 funding
     ($115 million in FY 08)
 Calendar:
►  May 07 — 1:30 PM — Senate Finance - SB 53 - Capitol, Supplemental and other appropriations
►  May 08 — 1:00 PM — Conference Committee on HB 171 (accommodate 90 day session)
►  May 09 — 9:00 AM — Senate State Affairs - SJR9 - Constitutional  Amendments on Benefits

WEEKEND EDITION

Well we said a Saturday LCS/Legislative Update would be sent on Saturday if warranted.  As they say when they want to be politically correct “The Fit has hit the Shan.”  Yesterday, two former representatives (Kott and Weyhrauch) and one current representative (Kohring) were arrested and charged with counts of bribery and extortion.  There was also a “State Senator A” whose term expired in January 2007 mentioned in the indictment.  I know this story is well known by most Alaskans at this time and these are indeed indictments and not convictions.  Stay Tuned!

LEGISLATIVE ACTION

Yesterday, The State Senate passed Committee Substitute for Senate Bill 125 (CSSB 125 Fin) on a 14-3 vote (3 senators were excused).  This legislation is a major piece of the K-12 funding puzzle.  This will blend the PERS cost rate for municipalities and school districts to 22%.  Huh?  OK, so this is “Inside Baseball” but I’ll use this analogy for now until someone can describe it better than I (that’s a good bet).  You’re told your electric bill is going to increase from $200/month to $300/month.  Next they tell you they are going to use another method (say capital credits) to help pay your electric bill so the bill only goes up to $220/month.  While you’re happy you don’t have to come up with the extra $100/month you still have to pay the extra $20/month.  This is the kind of scenario facing Alaska’s school districts.  The story is MUCH better on TRS relief (as proposed in House Bill 97) so this MAY truly “free-up” money for the classroom.  This all has to shake out in the next 11 days and this is one of five moving parts.  Whew!

SATURDAY FLOOR SESSION

While the Senate did not meet in session today, the House powered through a floor session lasting a little more than two hours.  I can’t recall both bodies not meeting on a weekend this late in the session.

CAPITAL BUDGET 

The Senate Finance Committee dropped the 140 page Committee Substitute for Senate Bill 53 (Capital Budget).  This DRAFT has money for school construction, library books, computers and athletic fields sprinkled throughout.  As it moves further towards reality NEA-Alaska will publish the large (over $1 million) projects that effect Alaska’s schools.  For individual school capital funds (books, computers, etc) contact your lawmakers and ask them what’s in the capital budget for your school.

FELIZ CINCO DE MAYO 

The oldest member of the State House, Bob Lynn (Anchorage) grew up in the barrios of east Los Angeles and reminded lawmakers today to enjoy Cinco de Mayo but to remember that it has nothing to do with Mexican Independence Day (September 16th).  Instead it is a day to celebrate Mexican heritage and pride and it commemorates a victory on May 5, 1862 over French forces in the battle of Puebla.

This was a valuable history lesson from a former teacher and a good representative that has consistently helped our 13,000 members on retirement matters.  Thanks Rep. Lynn!

The next LCS will be published on Tuesday, May 8.    As always, If you know anyone who wishes to receive the LCS/Legislative Update, please send us an e-mail with their home e-mail address if possible, and we’ll add them to the growing list of K-12 education advocates!

TIME MARCHES ON 

Today marks the 108th day of the 2007 legislative session.  The State Senate held a floor session today which is newsworthy only because they have only been meeting on Monday, Wednesday and Friday throughout the year.  With AGIA, PERS/TRS funding and other issues committee work has been busy.  The NEA-Alaska lobby team has been on the hill in Juneau every day since April 23rd and we’ll be here right through the 121st day (May 16th).  We promised not to report on the Alaska Gasline Inducement Act (AGIA) but all NEA-Alaska members must realize that AGIA is taking up an incredible amount of time during this regular session.  If Alaska gets a gas line it will help to fund state services (including K-12 education) into the future.  Stay Tuned.

K-12 EDUCATION FUNDING 

K-12 education funding is just starting to get discussed again.  The moving parts include PERS/TRS relief, The Area Cost Differentials, property tax rate of 3 mills and no increase to the BSA.  In 23 years of coming to Juneau I have not witnessed this many variations on funding K-12.  NEA-Alaska has not wavered on the need for a $115 million increase to K-12 education in FY 08.  NEA-Alaska presented a plan on December 8th to Governor Palin and throughout the first month of the legislature to all 60 lawmakers to get to adequate funding by 2014.  The latest idea has a convoluted increase to K-12 of about $96 million in FY 08 followed by about $67 million additional in FY 09.  This is a great start but we need to wait and see the final proposal to determine what new money is truly in the deal.  NEA-Alaska anticipates either a new piece of legislation or a committee substitute to be presented in the next few days.  NEA-Alaska will publish a Saturday LCS message if there is new movement on K-12 funding. 

Call or write your lawmaker and ask them this question,

“Please explain what is happening with K-12 education funding?"

The NEA-Alaska lobby team would love to hear the responses you receive

RETIREMENT MATTERS

One last time with the retirement news from last week.  Don’t forget to ask your lawmaker why.  If there is no movement on PERS/TRS I will delete this part of this report so please contact your legislator today.

Last week an amendment to offer employees and option of choosing a defined benefit system or a defined contribution plan was defeated on the House Floor.  New data arrived in late march that shows a Tier 3 PERS employee (those hired between July 1996 and July 2006) cost a little bit more than a new Tier 4 defined contribution PERS employee.  But wait, a Tier 2 TRS teacher (1990-2006) costs LESS than a new Tier 3 TRS defined contribution employee.  One would think with the new data and with the dearth of applicants for teaching positions, and other public employee positions, lawmakers will begin to see the COSTLY error of SB 141 in 2005.  Keep asking them WHY?

The question that needs to be addressed is why is Alaska continuing with a DCR plan at all?  We know that Nebraska and West Virginia went back to Defined Benefit (DB) after suffering recruitment and retention problems, and in West Virginia, they ended up with the must underfunded retirement plan in the nation.  This new DC plan is actually more expensive for teachers than the TRS tier II plan.  Continuing on this path as the only State with no social security net for public employees and no Defined Benefit plan for public employees hired after July 1, 2006 is ludicrous.

OTHER ISSUES 

NEA-Alaska continues to monitor other issues such as HJR 9 (health benefits) and HB 192 (Layoff/Non-Retention of Teachers).  Most of the action will move out of committees and onto the floor of the House.  If you have any questions please send us an e-mail or give us a call.

The next LCS will be published on Tuesday, May 8 (Saturday, May 5, if there is movement on K-12 funding or other priority one issues).

 As always, If you know anyone who wishes to receive the LCS/Legislative Update, please send us an e-mail with their home e-mail address if possible, and we’ll add them to the growing list of K-12 education advocates!

MAYDAY, MAYDAY, MAYDAY

There are now 15 days left in the 2007 legislative session and K-12 education funding is just starting to get discussed again, albeit mostly in private conversations and not in legislation through the committee process.  The latest idea has a convoluted increase to K-12 of about $96 million in FY 08 followed by about $67 million additional in FY 09.  This is a great start but it’s difficult to follow all of the moving pieces dealing with local property taxes, intensive needs block grants, PERS/TRS relief, area cost differentials and no increase to the Base Student Allocation.  Most of the “new” money comes from funding PERS/TRS outside the formula.  Call or write your lawmaker and ask them this question, “Please explain what is happening with K-12 education funding?”  The NEA-Alaska lobby team would love to hear the responses you receive.   Stay tuned and stay in touch.

K-12 EDUCATION FUNDING

As reported last week the legislature has passed Senate Bill 61 putting $1 billion in the Public Education Fund created by House Bill 158 two years ago.  The vote was 35-0 in the State House and 19-0 in the Senate. This is a great place to put excess revenues.  NEA-Alaska applauds this effort and looks forward to real increases to K-12 education to achieve adequate funding.  President Bjork wrote the following compass piece which appeared in today’s Juneau Empire http://www.juneauempire.com/stories/050107/opi_20070501024.shtml

 RETIREMENT MATTERS

Last week an amendment to offer employees and option of choosing a defined benefit system or a defined contribution plan was defeated on the House Floor.  New data arrived in late march that shows a Tier 3 PERS employee (those hired between July 1996 and July 2006) cost a little bit more than a new Tier 4 defined contribution PERS employee.  But wait, a Tier 2 TRS teacher (1990-2006) costs LESS than a new Tier 3 TRS defined contribution employee.  One would think with the new data and with the dearth of applicants for teaching positions, and other public employee positions, lawmakers will begin to see the COSTLY error of SB 141 in 2005.  Keep asking them WHY?

The question that needs to be addressed is why is Alaska continuing with a DCR plan at all?  We know that Nebraska and West Virginia went back to Defined Benefit (DB) after suffering recruitment and retention problems, and in West Virginia, they ended up with the must underfunded retirement plan in the nation.  This new DC plan is actually more expensive for teachers than the TRS tier II plan.  Continuing on this path as the only State with no social security net for public employees and no Defined Benefit plan for public employees hired after July 1, 2006 is ludicrous.

LEGISLATIVE FLY-IN

From Sunday through Tuesday, 18 members of NEA-Alaska representing nine different local affiliates descended on the capitol city to talk with their lawmakers and others.  Please stop and thank these members that gave up their Sunday to come to Juneau and lobby on behalf of the 13,000 members of NEA-Alaska.  Two members (Chip from Bethel and Phyllis from Old Harbor) gave up their entire weekend.  Lawmakers like to see their constituents in Juneau.  The Fly-In allows our members to tell their personal stories to THEIR elected officials.  If you see any of the Fly-In members ask them about their experience and again be sure to say Thanks!  The Legislative Fly-In members were:

 Dan Barker (AEA), Linda Kraushaar (AEA), Meredith Rude (AEA), Robert Taylor (AEA), Troy Carlock (AEA), Wrynn Johnson (MSEA), Abby Kellner-Rode (MSEA), Devon DeGarmo (MSEA), Sara Costello (CEA), Bill Ernst (FEA), Steve Laroe (FEA), Karen Dullen (FEA), Chrya Sanderson (ESSA), Marnie Bartolini (KPESA), Chip Hagedorn (LKNEA), Phyllis Clough (KIESA), and Greg Middag (KEA).

The next LCS will be published on Thursday, May 3.    As always, If you know anyone who wishes to receive the LCS/Legislative Update, please send us an e-mail with their home e-mail address if possible, and we’ll add them to the growing list of K-12 education advocates!