Sponsor Statement for SB 193

School Administrative Expense Cap

This legislation is intended to help the school children of Alaska. If adopted, it will provide for a cost effective allocation of state funds to districts, by limiting the amount of money districts can expend on the costs of administration.

The FY 97 budgeted costs for administration of schools in Alaska is almost $126 million. The total ADM for the state is 126,463, which obviously shows a cost of about $1,000 per ADM for administration.

However, when the actual costs for each district are reviewed, there is a substantial difference among the districts. The actual costs within Alaska range from a low of $695 per ADM in Ketchikan to a high of $6,501 per ADM for the Aleutian Region.

Certainly, the great disparity of costs is ample testimony to the need for some standard in Alaska. This bill uses a rate of $950.00 per ADM as the standard, multiplied by the area cost differential. The provides for the commissioner of education to reject a budget from a district which exceeds the established rate, but also provides for a waiver process for possible extenuating circumstances.

Alaska's school children are impacted by the area cost differential ... why not make school administrators do the same, especially when it will help to get more money into the school.

SB 193: S(HES): 5/2/97: mj