Senate Finance Committee advances HB 28, adopts amendments on residential stipends, substitute teaching and energy review

Juneau — The Alaska Senate Finance Committee on May 18 advanced House Bill 28, the teacher state-employee and student loan program, approving committee amendments and sending the bill to the Rules Committee for further consideration.

Senator Cronk proposed an early amendment to increase residential-school stipends by linking them to the Base Student Allocation (BSA), saying an independent review of fiscal year 2024 audited expenses showed average room-and-board costs of 25,700 per student while the statutory stipend was 12,900. "That study determined that the current statutory residential stipend only covered half of the actual room and board expenses," Cronk said, and he cited a fiscal note estimating the increase would cost about $8,744,000 per year. Cronk later withdrew that specific amendment, saying the change should be considered earlier in the session.

The committee adopted Amendment 3, offered by Senator Cronk, which accomplishes two main items: it allows members of regional school boards to substitute teach under emergency, time-limited circumstances determined by the local board, and it disqualifies people convicted of certain crimes from serving on school boards. When Senator Kaufman asked whether the ineligibility would be retroactive, Cronk replied, "It sure does." Chair Hoffman removed his objection and the committee adopted the amendment by voice consent.

Senator Kaufman offered Amendment 4 to add a measure of accountability for energy usage reimbursements, requiring districts to make reasonable efforts not to increase energy consumption year to year and instituting a review if consumption spikes. Members asked whether the metric refers to dollars or physical consumption; Kaufman clarified the intent is to track consumption (gallons, kilowatt-hours) rather than transient price spikes. "It's consumption, not cost," Kaufman said in closing remarks. The committee adopted Amendment 4 by voice consent.

Senator Kaufman also proposed Amendment 5 to add a sunset date of July 1, 2032, so the legislature would re-evaluate the program in five years; he later withdrew that amendment after members noted overlapping reviews and studies.

Senator Lukey Tobin praised the package, saying it balances evidence-based reforms with relief for districts facing volatile energy markets and underscores the role of local contributions and good data in improving student outcomes. The bill’s House sponsor, identified in the record as Representative Story, thanked the Finance Committee for support and said the teacher loan repayment provisions will help retain educators in classrooms.

A committee member moved that the Senate Finance Committee substitute for House Bill 28, version W, as amended, and report the bill with attached fiscal notes and individual recommendations; with no objection the committee advanced the bill to its next referral, the Rules Committee. The meeting adjourned and the committee’s next scheduled meeting was announced for 1:30 p.m. the same day.

Actions taken in committee were by unanimous voice consent with no recorded roll-call vote noted in the transcript.