News from Hughes » February 1, 2022

School Choice: A Game Changer

(by Buddy Whitt reporting on behalf of Senator Hughes for your benefit)

This past Saturday, Senator Hughes had the honor of speaking in Anchorage at the School Choice Celebration to an audience who share the same passion for effective and excellent education that she has. This group of parents, students, educators, and concerned citizens understands that every child is unique and that what might work for one child, might not work for another.

As Senator Hughes has pointed out, history shows us, and those who flock to our nation demonstrate to us, that a person with a goal, a drive, with a dream and persistence, can leap tall buildings in a single bound. An American’s destiny is not set in stone. Born in despair, challenged by barriers, somehow a plethora of Americans rise above the obstacles. By what means do they do this?

As Senator Hughes points out, an excellent education is the key to piecing ceiling limits, to breaking barriers, to overcoming socio-economic barriers. Education, excellent education, is a game-changer in America. She knows and has expressed repeatedly before committees that an excellent education, without a shadow of a doubt, is a game-changer right here in Alaska. She knows it personally.

As a young mother in Alaska, Hughes was under the poverty level. She has shared that education was key in changing the direction of her life and that of her family. To this day, she is very thankful for the opportunity that Alaska afforded her. Her now-adult children had attended schools in numerous communities all over Alaska during her time in Hoonah, Bethel, Fort Yukon, Fairbanks, Seward, and Palmer so she is familiar with both rural and urban challenges.

As you may know, she has become one of the most outspoken and ardent supporters for improving our state’s education system and improving the outcomes of the students – outcomes that quite frankly have been and continue to be an embarrassment compared to the rest of the nation.

Just recently, US News and World Report issued their study of each state and reported the ranking of each state in several different categories. Overall, the state of Alaska finished in an embarrassing 45^th place out of the 50 states. However, what is even worse, is that the state ranks 49^th in education. This will be about the only time when you will hear me say that being the 49^th state is abhorrent, but it really is.

The full report, rankings and methodologies can be found here: https://www.usnews.com/news/best-states/rankings.

Senator Hughes understands that we are well past the point of inaction on this issue. We are failing our children and have been failing them for some time. She was startled to learn our state’s ranking and our students’ struggles when she learned she would be chairing the Education Committee seven years ago. She began work then to do what she could to fix the problem.

Hosting numerous bicameral, bipartisan hearings to figure out solutions with her colleagues, she then introduced legislation to ensure virtual education was high quality and readily available, and to ensure our students were properly equipped to read in the early grades. Although the bills received warm receptions, they did not progress due to the preoccupation with fiscal matters in the Finance Committees.

In 2021, she suggested to Senator Holland, the current Education Committee chair, that he consider filing her legislation as a committee bill. She thought it might make more traction. He filed the bill after merging it with it another reading bill by Senator Begich which contained an early education component addressing optional pre-kindergarten.

Senator Hughes is thankful that the legislature is now seriously considering this bill (SB 111) that would hold schools more accountable. SB 111 requires a “read well by age nine” program in every school to be established as well as an online, statewide virtual education consortium available to every district and voluntary preschool which would include proven curriculum to build and begin the basics of reading instruction.

Regarding school choice, although SB 111 provides important tools (proven reading curriculum and high quality online instruction) for those families who choose options other than neighborhood schools, the bill is not specific to this topic. Senator Hughes recognizes more work is needed to expand education options as this too will improve educational outcomes in Alaska. Evidence exists to support this, and she wants Alaskans, including legislators, to pay attention to it.

She wants Alaskans to know that school choice allows parents to make a needed change if the school their child is in is not the best fit. She wants Alaskans to know that it boosts student engagement and academic results. It increases parental involvement which helps improve student outcomes. It allows students to escape situations where bullying, gang activity and violence may exist. It incentivizes schools to be the best they can be so that families choose to enroll their children there. It puts competitive pressure on schools to improve their student outcomes by creating direct accountability to parents and incentivizing excellence in schools around a district.

Senator Hughes wants Alaskans to know that school choice provides options to low-income families. Allowing parents to choose the right education fit for their child breaks the arbitrary link between a child’s home and where they attend school, and it ensures access to a better school regardless of a family’s income or ability to live in a higher income community.

In Arizona, Senator Hughes points out that parents who utilize state education savings accounts were shown to be much more satisfied with the school chosen for their student than the one the child would have normally attended. Similarly, parents of students participating in the Washington DC opportunity scholarship program reported not only being more satisfied, but also much more involved with their children’s school and their learning. West Virginia passed sweeping school choice legislation last spring. Florida has seen great success in student outcomes and incorporates a strong reading program, a quality online platform, optional pre-k, and school choice.

Senator Hughes is grateful SB 111 has momentum, and at the same time, hopeful that her colleagues will join her in seriously reviewing all options available and take school choice into consideration as a next step.

In discussion, Senator Hughes notes that when she thinks of her time in the legislature, there have been several critical issues that demanded timely and deliberative action, and she and her colleagues got it done. From finding ways to increase oil production to reforming criminal statutes by repealing SB 91, these issues and more have been “must fix now or we will be in big trouble” items.

Senator Hughes believes it is time for us to put the education of Alaskan children in this same category of “urgent”. She is appalled that there are individuals and groups that prefer the status quo and push back from taking steps to help our children. She is not interested in appeasing adults; she is interested in helping ensure Alaska’s children have the best shot at a great education. At the end of the day, Senator Hughes knows that an excellent education opportunity is a game-changer for a child, and she will press for policies that ensure that Alaska’s children are not short-changed.

Senator Hughes meets the new Commissioner of Administration, Paula Vrana, and legislative liaison, Ken Truitt.

Truck drivers in Juneau join the “Freedom Convey” stretching over 6 Miles.

Senator Hughes meets with the Governor’s Council on Disabilities and Special Education.

Senator Hughes meets with Taylor Stevenson from Ultra Safe Nuclear Corporation (left) and Travis Million from Copper Valley Electric (right)

Community and Regional Affairs Update

(by Daniel Phelps reporting on behalf of Senator Hughes for your benefit)

In our first meeting of Community and Regional Affairs this year, we heard House Bill 127 presented by Representative LeBon. Primarily, HB 127 updates bonding statutes for regional health organizations and University of Alaska by increasing the Alaska Municipal Bond Bank’s cap for project funding to these types of organizations. HB 127 also proposes to remove the project scope limitation of only heating and energy projects for the University of Alaska. Furthermore, it removes the 49% project participation rule for the Alaska Municipal Bond Bank when funding regional health organization projects.

Overall, the proposed legislation will reduce the cost of borrowing for University of Alaska and regional health organizations which in turn will help lower the cost of government for Alaskans (continue reading to find out how).

Established in 1975, The Alaska Municipal Bond Bank Authority (AMBBA) seeks to provide aid to authorized Alaskan borrowers seeking funding for capital improvement projects. Schools, water and sewer systems, public buildings, harbors, and docks are among the types of projects that AMBBA might fund.

In its 47-year history, AMBBA has never had a borrower default on a loan and maintains an A-tier credit rating across a range of metrics such as the S&P Global Ratings. AMBBA receives its capital from bonds sold on the national market. It then offers the funds to its authorized borrows for in-state capital improvement projects.

Representative LeBon’s bill seeks to actualize the full potential of AMBBA by raising the loan cap to regional health organizations from $205,000,000 to $500,000,000 and to University of Alaska from $87,500,000 to $500,000,000. While these are substantial increases, AMBBA’s long history of top-tier credit ratings demonstrates the bank’s competence and readiness.

Most importantly, this bill offers savings to Alaskans and our state budget. By expanding AMBBA’s ability to issue bonds to these types of organizations, state dollars will not be directed toward higher interest rates. Note that AMBBA uses capital from the national bond market to fund Alaska projects for less than what other lenders offer. At the same time, these other lenders do not see AMBBA as competition because they are not interested in clinics and campus buildings as collateral.

The savings also mean extra costs are not passed on to healthcare consumers or students. Lastly, in regard to regional health organizations, when facilities are built in communities by tribal entities, and Alaska Natives receive healthcare services there, 100% of Medicaid charges are picked up by the federal government. When an Alaska Native Medicaid patient receives care in a non-tribal facility, 50% of the tab is picked up by the state. Considering the size of our Medicaid budget, HB 127 is an important bill to pass.

HB 127 has received support from the Office of the Governor, in addition to AMBBA and various regional health organizations. The bill returns to the Community and Regional Affairs committee this Thursday, February 3 at which time committee members will make their recommendations for bill passage.

Following HB127 this Thursday, the committee will have the opportunity to hear Senate Bill 13 from Senator Begich for the first time in the 2022 calendar year. SB13 proposes to fill budget deficits by increasing the maximum mill rate from 20 mills to 30 mills on the full and true value of oil and gas property taxes under Alaska Statute 43.56. Although this bill was heard last year, the committee expects to hear new data and information from various updated fiscal reports as well as new testimony from the invited guests from the Alaska Municipal League and the Tax Division of the Department of Revenue.

A myriad of bills are being heard this coming week with opportunities for public testimony. We have included a notice above and one below. Scroll down to the very bottom of this newsletter to see more. You can also view the daily calendar tab on the Alaska State Legislature website anytime to see the complete hearing schedule.

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