State of Alaska
Fiscal Note
Bill Version: HB 204
2020 Legislative Session
Fiscal Note Number: 5
(H) Publish Date: 1/21/2020
Identifier: 3993-EED-SSA-1-17-20 Department: Department of Education and Early Development
Title: EARLY ED PROGRAMS/FUNDING Appropriation: Education Support and Administrative Services
Sponsor: RLS BY REQUEST OF THE GOVERNOR Allocation: Student and School Achievement
Requester: Governor OMB Component Number: 2796
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2021 Governor's
Appropriation FY2021 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2021 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Personal Services 3,192.3 3,862.3 4,532.3 5,202.3 5,872.3 5,872.3
Travel 45.0 55.0 65.0 75.0 85.0 85.0
Services 236.4 278.4 326.4 374.4 422.4 422.4
Commodities 695.0 600.0 600.0 600.0 600.0 575.0
Capital Outlay
Grants & Benefits 53.0 53.0 53.0 53.0 53.0 53.0
Miscellaneous
Total Operating 4,221.7 0.0 4,848.7 5,576.7 6,304.7 7,032.7 7,007.7
Fund Source (Operating Only)
1004 Gen Fund (UGF) 4,221.7 4,848.7 5,576.7 6,304.7 7,032.7 7,007.7
Total 4,221.7 0.0 4,848.7 5,576.7 6,304.7 7,032.7 7,007.7
Positions
Full-time 24.0 29.0 34.0 39.0 44.0 44.0
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2020) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2021) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? Yes
If yes, by what date are the regulations to be adopted, amended or repealed? 03/31/21
Why this fiscal note differs from previous version/comments:
Not applicable; initial version.
Prepared By: Heidi Teshner, Director Phone: (907)465-2875
Division: Finance and Support Services Date: 01/16/2020 01:45 PM
Approved By: Neil Steininger, Administrative Services Director Date: 01/16/20
Agency: Office of Management and Budget
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 HB 204 - Fiscal Note 5
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. 3993
2020 LEGISLATIVE SESSION
Analysis
This bill creates three new programs: an early education program, a school improvement literacy program, and a
comprehensive reading intervention program. This fiscal note addresses the school improvement literacy program and
the comprehensive reading intervention program.
School Improvement Literacy Program
The school improvement literacy program, created under AS 14.07.065, is established in the Department of Education &
Early Development (DEED) to provide direct support and intervention in district and school literacy programs. During the
first year, up to 10 lowperforming schools would each be served directly by Reading Specialists employed by DEED and up
to 20 schools would be served in the second year and beyond. Depending on school size and need, either one or two
Reading Specialists would be assigned to each school. DEED anticipates employing from 10 to 20 Reading Specialists in
year one and 20 to 40 Reading Specialists in the subsequent years. For purposes of estimating fiscal impact, the maximum
number of positions has been reflected in the first year with five additional positions phased in annually over the following
four years. These estimates will be updated in out years as the program is implemented.
Reading Specialists are budgeted as Education Specialist II positions at a Range 21, Step C/D, $134.0 each. In addition,
department chargebacks of $9.6 per position would be needed annually. A onetime increment of $5.0 per position for
supplies and equipment would be needed in the first year the position is budgeted. Reading Specialists would be located
in communities across the state and would need to be provided a geographic cost differential, which is not included in this
estimate.
Each Reading Specialist would be required to participate and present at statewide professional development conferences.
At $1.0 per trip X 2 trips X 20 positions, total travel for year one is $40.0. Travel costs for subsequent years would increase
with the number of Reading Specialists employed. For purposes of estimation, 5 Reading Specialists are added each year
through FY2025 resulting in $10.0 in additional travel costs annually (2 trips per position X 5 positions).
A onetime increment of $6.0 is included for legal services costs associated with producing new regulations.
Under the school improvement literacy program, DEED would purchase supplemental reading textbooks and materials for
school districts in connection with reading intervention services. The cost per student when adopting a new reading
curriculum is $.25. With approximately 10,000 students per grade level in Alaska schools, there are a total of 40,000
student in kindergarten to third grade (K3). During the 20192020 school year, 391 schools served K3 students. 40,000
students / 391 schools = 102 K 3 students per school on average. For each year of the literacy program, 10 schools X 102
K 3 students/school X $.25/student = $255.0.
Comprehensive Reading Intervention Program
The comprehensive reading intervention program is created under AS 14.30.760. To manage and operate this program
and provide direct support and training for all K3 teachers on the use of the statewide screening or assessment tool
results and on the science of reading, DEED would need 1 Education Administrator II Range 22, Step C/D at $149.0, 2
Education Specialist II positions at a Range 21, Step C/D, at $134.0 each = $268.0; and 1 Education Associate II position at a
Range 15, Step C/D, at $95.3.
The Education Administrator II will be required to participate and present at statewide professional development
conferences. At $1.0 per trip X 2 trips X 1 position, total travel each year is $2.0. In addition, the Education Specialists and
Education Associate will provide direct support to district staff concerning the statewide screening or assessment tool. For
this support, a travel budget of $3.0 is needed annually ($1.0 per trip X 1 trip X 3 positions).
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 HB 204 - Fiscal Note 5
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. 3993
2020 LEGISLATIVE SESSION
Analysis
In addition, department chargebacks of $9.6 per position would be needed ($38.4 total).
In addition, the comprehensive reading intervention program requires the adoption and administration of a statewide
screening or assessment tool to identify students in K3 with reading deficiencies. There are approximately 40,000
students in K3 in Alaska schools. A statewide screener would cost approximately eight dollars per student. This would
result in an annual cost of $320.0.
Finally, grants for one staff member per district to attend the statewide screening or assessment tool training; 53 districts
X one staff member per district X $1.0 for a total of $53.0.
The effective date of this bill is July 1, 2020 (FY2021).
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Statutes affected:
HB0204A, AM HB 204, introduced 01/21/2020: 14.03.060, 14.07.020, U.S.C, 14.38.010, 14.30.180, 14.30.350, 14.03.072, 14.30.760, 14.30.770, 14.03.080, 14.07.165, 14.03.123, 14.17.500, 14.17.905, 14.17.990, 14.03.125, 14.03.135, 14.33.120, 14.07.030, 14.07.050, 14.07.065, 14.11.014, 14.30.278, 14.03.120, 47.17.290