State of Alaska
Fiscal Note
Bill Version: SB 97
2023 Legislative Session
Fiscal Note Number: 1
(S) Publish Date: 3/8/2023
Identifier: 0073-EED-SSA-3-6-23 Department: Department of Education and Early Development
Title: TEACHER RECRUITMENT; LUMP SUM Appropriation: Education Support and Admin Services
PAYMENT Allocation: Student and School Achievement
Sponsor: RLS BY REQUEST OF THE GOVERNOR OMB Component Number: 2796
Requester: Governor
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2024 Governor's
Appropriation FY2024 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2024 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Personal Services 110.0 110.0 110.0 110.0
Travel
Services 16.1 10.1 10.1 10.1
Commodities 5.0
Capital Outlay
Grants & Benefits 57,990.9 57,990.9 57,990.9
Miscellaneous
Total Operating 131.1 0.0 58,111.0 58,111.0 58,111.0 0.0 0.0
Fund Source (Operating Only)
1004 Gen Fund (UGF) 131.1 58,111.0 58,111.0 58,111.0
Total 131.1 0.0 58,111.0 58,111.0 58,111.0 0.0 0.0
Positions
Full-time
Part-time
Temporary 1.0 1.0 1.0 1.0
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2023) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2024) 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If yes, by what date are the regulations to be adopted, amended or repealed? 06/30/24
Why this fiscal note differs from previous version/comments:
Not applicable, initial version.
Prepared By: Sabrina Javier, Administrative Services Director Phone: (907)465-5531
Division: Administrative Services Date: 03/06/2023 01:45 PM
Approved By: Heidi Teshner, Acting Commissioner Date: 03/06/23
Agency: Department of Education and Early Development
Printed 3/8/2023 Page 1 of 2 Control Code: WsZGp
SB 97 - Fiscal Note 1
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. LL 0073-3
2023 LEGISLATIVE SESSION
Analysis
This bill amends uncodified law that establishes a program within the Department of Education and Early Development
(DEED) that would pay certificated full‐time teachers with a lump sum payment as a retention and recruitment incentive
on, or around, July 1, 2024, July 1, 2025, and July 1, 2026. The payment of the lump sum appropriation is contingent on
appropriations made for this purpose in the relevant fiscal years (FY2025, FY2026, and FY2027). The bill limits the
payment to certificated full‐time teachers assigned to a classroom teaching assignment and specifically excludes
temporary, substitute, or assistant teachers.
To be eligible for payment, a teacher must occupy a teaching position for the entire school year immediately preceding
the date of payment. In addition, to be eligible for payment, teachers would be required to submit an application and
school districts would be responsible for certifying the applications. DEED would develop the application and it would be
due no later than the last day of school for the eligible school year. Once the application and certification requirements
are met, DEED would grant school districts funding to pay the retention and recruitment incentive as a lump sum payment
to eligible teachers.
The bill also considers all lump sum payments compensation for the purposes of the Teachers’ Retirement System (TRS).
To accommodate the work associated with this bill, DEED would need one non‐perm position starting in FY2024 to
implement the program, develop regulations and application, and review applications. One Education Associate 3 at a
Range 17, Step B/C, at $110.0 annually in personal services costs. Ongoing department chargeback costs associated with
the positions would be $10.1 annually. In FY2024, a one‐time cost of $5.0 for the position would be needed to purchase
necessary equipment and supplies; as well as, a one‐time cost of $6.0 for legal services costs associated with regulation
development.
For the lump sum payments, using the 2022‐2023 Teacher Count data and the distribution by district as outlined in the
bill, the total grant payments are estimated to be $51,520.0 annually starting in FY2025 through FY2027.
In addition, since the lump sum payments are considered compensation for the purposes of TRS, the employer
contribution estimated to be $6,470.9 ($51,520.0 multiplied by 12.56%) is included to provide support to school districts
in making these payments directly to TRS. The funding DEED grants to school districts would include the employer
contribution to the TRS.
This bill takes effect July 1, 2023 (FY2024).
(Revised 08/26/2022 OMB/LFD) Page 2 of 2
0073-EED-SSA-3-6-23 Page 2 of 2 Control Code: WsZGp