Bill Summary – FastDemocracy

State of Alaska
                                                            Fiscal Note
                                                                                               Bill Version:                     HB 106
 2023 Legislative Session
                                                                                               Fiscal Note Number:               1
                                                                                               (H) 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: LzWmx
                                                                                                                HB 106 - 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: LzWmx