Good morning. I would like to call the second meeting of the House Education Finance Subcommittee to order. It is now 8.01 a.m. Friday, February 6th in Davis room. Members present are to my left. To my right, we have Representative Isha and we also have representatives of co-chair work on that. Can shoot and also joining us today from the finance committee. We have a representative more. Representative Dibert has also joined us. Thank you and online we have Commissioner Bishop. Thank You for joining. I'm going to ask you and myself, Representative Galvin, Chair of the House Education Subcommittee. Please take this time to silence your cell phones for the meeting. And I want to especially thank Chloe Miller from the Juneau LIO for moderating. I apologize. I have the wrong name here. I am going get that for you. It's done terribly. Underwood, thank you. We also have our subcommittee A, David Jane. And we have Doug Jones here from the, you know, LIO. Thank you, Doug. Oh, yeah, apologize. Bridges. Miss. Pardon? Bridges? I didn't mean Doug? Bridges Bridges, I did not say that, right? We love you Doug We should have Kale Brown who is also here with the LAO. Thank you. Oh, he's not actually here, sorry. Pardon me. He is not here apparently. This is a figment of our imagination. It is Friday. fun Friday and he's here for the next meeting. Thank you for being here. All right. Today we're going to continue to hear from Deputy Director of Innovation and Education Excellence, Kelly Manning, along with Division Director of innovation and education excellence, Monica Goyette. As they finish their slideshow on the department's teacher recruitment and retention initiatives, Please come on forward. We're after we finish this particular presentation. From our last meeting, we're going to take a very brief at ease at approximately 830 to transition to a presentation on the Alaska Performance Scholarship and Alaska Education Grants from the Education Director of Alaska Commission on Post-Secondary, Ms. Kerry Thomas, and the Division Operation Manager of Innovation and Education Excellence, Miss Deb Riddle. All right, and then at nine o'clock, the House Finance Education Subcommittee will be adjourning and there'll be a very brief at ease so that we can transition it to the House Education Standing Committee and the presentation going forward. So thank you for coming forward, Ms. Manning, Director Manning. Appreciate that. Right now I believe we are on slide 11 and also joining us online, I want to make sure I caught I have the commissioner, it looks like we have in room the other two, so I think we're good to go. Thank you so much for being here. Good morning, thank you for having me again for the record, Kelly Manning, Deputy Director for The Division of Innovation and Education Excellence, and Director Goya was not able to join us today so Commissioner has joined as well. I will pick up on just moving through some of our apprenticeship work that we're doing. I had covered most of the principal registered apprenticeships, and so I'm going to move on to educators rising and some information around student to teacher pathways. This slide demonstrates the growth in participation in the educators' rising program from 2017 to 2025, so they have been able to attract a lot more interest in This is a career in technical education program approved CTEP. And so some of the ways that this is supported is one, the University of Alaska Fairbanks has educators raising funding, which helps assist paying for travel for the participants, being able to come to convenings. They currently are able to help pay for assessment for a paraprofessional exam. So they have some funding additionally education program districts are able to tap into their Perkins federal CTE funds to help support costs for individuals, individual students to participate. With this program, because of the work that we've been doing on apprenticeship, we have engage the educators rising in alignment to the teacher registered apprenticeship, but also look at other pathways for student to teacher. So we've been working with the universities, both on how we can make a connection between educators rising, but I also looked at those dual enrollment, dual credit pathways and create additional CTEP pathways for engaging secondary students in the education field. share, you know, why this might be an exciting pathway for students around the state and with that We will, as we're building out that pathway, we are really looking to have it created as a career and technical education program so that we can tap into those Perkins funds so the individual districts can support students in participating. The goal with this is to create that Pathway for Apprenticeship that starts with students special education and principal. So our goal is to have the full spectrum of opportunities through apprenticeship. This really touches on that information, so I couldn't move to this slide, so i'm going to go to the next. In addition to the apprenticeship work that we've been doing, we have also been able to tap into some resources. So at the beginning of 2025, some federal grant funds had been tabled. They were reinstituted in the fall. That included both the Regional Education Lab Northwest, which is a grant awarded to West Ed. And then the Northwest Comprehensive Center both of those had been ended, picked back up in the fall. And so with that, we scoped work with both of these organizations to pick up some of the teacher retention recruitment work that we had stopped at when some the funding had then reduced. Rel Northwest, we have been working with them to pick up a project that they had worked on with the Lower Cusca Quim School District. Just checking my notes to make sure I have the right district, sorry. And yeah, Lower, lower Cuzcaquim school district. They had done some work with LKSD to identify pathways to support retention in rural remote districts, and so they had kind of done a pilot research project with LKSD. And so, they're picking up that work with the reinstatement of that grant to look at ways to create sort of toolkits and resource guides to support other districts in taking some of the pilot's research work and sharing that more broadly with rural Thank you, pardon the interruption, but I'm going to ask as you move forward through the rest of these few slides, would you please, if you're referring to a grant, let us know how many dollars are associated with that, this is the finance subcommittee so I am trying to help people have a sense of how Galvin, I do not have the dollar amounts for the Ralph Northwest and the Comprehensive Center. The funds go to those organizations and then they're funded to support the state. So we don't have like a direct contractor grant that comes to us for them to do the work, the grant goes to them. But I will follow up and get the total amounts from both of those grants. And then the list of what they are doing for that department. Thank you, please proceed. All right, so the comprehensive center grant Sorry, I think I jumped ahead, there we go. So when they re-instituted, we were able to pick back up some of the work that we have been doing around taking the teacher retention recruitment playbook and unpacking that and really looking at what are the things that different stakeholders can take forward from that work. And so they are convening some working groups for us to really look at that playbook, and to the individual strategies in the playbook because the playbook is so comprehensive and it's a really a wonderful resource. But it can be, you know, for a district that's trying to look at strategies, it is a lot to unpack. And so really looking at how can we take that work and make it accessible and continue the work of unpacking it and making the strategies accessible for different stakeholders. So that is one of the pieces that they are supporting with the picking back up of the comprehensive center of work. The teacher certification system, as we have shared, the modernizing the certification system has been one of the strategies to support teacher retention and recruitment. And so the, the Teach A.K. platform, the that system. We have now got fully up and functioning, programs that are a part of that, the processes are all functioning well. As I shared on Wednesday, we did have a little bit of a leg over the holidays, but they're now caught back up. And so we are to this, you know, when we were in the process of updating it, quite far behind in processing applications and we are now back to that four to five week processing time for our certification processes. So that's been a really great undertaking and continuing to streamline those services. Additionally, since 2017, the State Board of Education has taken up a number of initiatives to streamline the certification process with 31 certification regulation adoptions and amendments since 2016. So there's been a lot of effort in that area to streamlined and support more efficient The next few slides go through some current data, we were able to use some of the teacher retention recruitment funds last year to work with the Institute for Social and Economic Research to take a previous regional education lab northwest project that had provided data on turnover and update that through 24-25. But that was an ask that we had had last year was, you know, we had older data. It had only gone through 2019. And the ask was could we provide updated? So this is our current update on that teacher turnover data Through what's from when we started tracking the first day teacher vacancies This shows our first aid teacher vacancy through 2025 and you can see that we did have a spike up to 2024 And that has come down in 2025 The emergency certified teachers continues to fluctuate based off of need annually, and that currently sits for the 2025-26 school year. There were 209 emergency-certified teachers at the beginning of the school year This question has come up a few times, but around the visas that we currently support educators. There are 280 H1B visa teachers this year, and 180 J1 visas. There's five additional under different types of visas for Canada and Mexico. But so we have 465 certified teachers in Alaska on an international working visa currently. This represents the current trend data for teacher and principal turnover the darker line at the top is our principal Turnover you can see that that we previously had had through 2020 on this table So this shows what has happened since 2020 we definitely see That there was a trend of staying in place around COVID and that That has since spiked back up And so for principal turnover we currently for the 24 school year sat at 35% turnover end and this is statewide we do know that in row remote principal turnover in particular is significantly higher sitting more more at 55% the teacher turnover tends to be a little bit more stable it's it has it a bit more of a common though it is a Where the urban fringe teacher turnover is a little bit lower, but otherwise it sits roughly about 30%, but that principle turnover spikes quite a bit when you get to rural hub and rural remote districts. In addition to the update for the teacher turnover one of the things that was a recommendation of teacher retention recruitment playbook was to conduct an educator exit and stay survey. We are using title 2A funds to support the implementation of this survey, it did go out at the beginning of that week and I believe I spoke a bit about that when I presented All right, those are the rest of our slides if you have any questions for me, thank you since you just mentioned title 2a funds Can you share how much that? Total was then for that survey. I don't have that off the top of my head, but I will get that for you Yeah, Thank You so much director Manning, and I am now going to move to our queue We have representative Underwood first Thank you, Chair Galvin. Through the chair, I just had a question about the apprenticeship program. I was just curious how that works, sorry for my naivety on that. Are they enrolled in the UA system while they're doing the pathway and getting credits for like on the job teaching and then doing online classes? Or could you explain to me how it works? Yeah, yeah, through the Chair to Representative Underwood. It is a unique approach to apprenticeships, but it does, certification. We have worked with all of our Alaska Education Programs, so the University of Alaska Southeast, Anchorage and Fairbanks, as well as Alaska Pacific University. And then there were districts working on grow your own work with Shadron State College aswell. So those are the approved education preparation providers. They provide the instruction and then the mentor support is provided roughly two to four thousand hours of on-the-job learning as they go through their coursework. They are employed in the district that is a requirement of apprenticeship. Most of our districts are using paraprofessional positions and then they work on releasing them for teaching opportunities to get that on the job learning opportunity. And then one of the really great things about the apprenticeships is that that, that On-The-Job Learning is embedded as they're getting their instruction through the university so as the mentors aware of what they're working on, and they can really identify here strategies that you can employ in the classroom from what you're learning in your instruction. Follow-up please. Thank you, just a quick follow- up, thank you Ms. Manning. Could somebody in Homer, that's a paraprofessional, for say, because I do know somebody down there that is working with their teaching degree, but they don't have their certificate yet? Could they enroll at like UAF online or UAA online, and then could they do the mentorship somewhere in Homer, or do they have to move to go get that certification? Yeah, through the chair to representative Underwood. Yes, it is based in their local community. The district does have to sign on to the sponsor. So if their district hasn't signed on apprenticeship, they wouldn't be able to participate. But once the district signs on, then they can. And all of the universities are providing coursework outside of working hours to align to the requirements of apprenticeships. And so they do their course work remotely from where they are in the state. Thank you, co-chair story Thank You, how to chair Galvin and welcome again director Manning I have a few questions sure and if I may ask co chair if you would if if You're referring to a specific slide go ahead and let The director know and we'll make sure that we can help the public follow along with you if he'd like Yes, thank you. So on the educator rising slide, which I think is page 12, I am wondering what, not what the outcome, the goal is, but what numbers have we set for the educated We're low. I'm just trying to get a sense of how we are doing and meeting our hopes for people participating in the program Through the chair to member story the I Think that there was a more like a general goal set of increasing engagement as we're looking at the pathway and growing it That is one of the things that we were working on right this year with our with one comprehensive center is to set some metrics for apprenticeship. To date, we've really been getting the groundwork laid. And so as we look at what are those pathways for student to teacher, we are looking to engage more with the educators rising. But I think that the goal before had been more just increasing engagement in career and technical ed programs more generally. And this was one that had seemed growth and engagement. Follow-up culture. How many teachers do we need statewide? And maybe I'll qualify that by my question was going to be I see that on page 19 you report that we had 313 first-day teacher vacancies and then you had a number on the next page of of emergency certifications. And I've seen deed list the number as 598 vacancies. And, I didn't know if you were taking that, that's the need because you had to emergency certify these other numbers. So, what is the true of vacancy rate in Alaska? And how many teachers do we need? Through the chair to representative story, I think that the math that you're doing is probably a good estimate. In addition to those, there's also some areas where we have out of field teachers as well. With the emergency certified teacher, though they are on an emergency certificate, the requirements to be on emergency certificates are to enrolled in an education preparation program and to have an assigned mentor. And so, although they're on the Emergency Certificate, they should be in a program moving toward certification. So I think the bigger area to focus is on those first day vacancies where we really don't have a educator in the classroom. And so I think filling both of those gaps are areas that we're targeting as we look at our teacher retention and recruitment. Yes, coach, your story. Thank you for that. That helps me get kind of a true picture of the need. And we know how important having them and retaining them is. So on page, and there I do not see a page number on the 23. On page 23, when we're looking at ISER's study, of course we know when we see a movement that this affects student achievement because the more relationship you have with the teacher, we've trained the teachers so they have more experience and so then when they move out and a new teacher comes in, it really hurts our impact and achievement which is why all the efforts that you're doing are critically important. on this slide. I guess always our goal is to retain teachers. And so if we have, I'm just trying to get my mind around all the numbers because if have like 530 teachers, so we're And some of them, I don't know if you could ever break a time by how many move within our Alaska, or are they moving out of Alaska? And what's helpful to me to know about that number is at least if they're moving within Alaska we know that we're still getting the benefit of how we've been training them for like the Alaska Reads Act. And I see that. We have gotten 2000 somehow certifications in the Alaska Reads Act, and I can't remember what page number that was on. And again, I don't know how many elementary school teachers that we have, but how close are we to meeting the goal to having everyone certified in standards for teaching science of reading? Through the chair to the representative story. I'll look and get a current count of what we have for elementary positions that are teaching within those grades and then the certifications so that we can have that comparison for you. Thank you and Director Manning. I'm going to break us for just a moment because online we had a commissioner who would like to answer this line of questioning in part so I want to make sure to welcome you to the table and the discussion commissioner. Thank you, Madam Chair. This is Dina Bishop for the record and I just wanted to share in regard to the first day vacancies and some of the reporting that was done in prior years. What we identified in working with districts is that the report for first-day vacancies were all certified positions. And so what the department is really focused on are those certified positions that are sitting in front of a classroom. So we've, for teacher recruitment and retention, we're really bringing a focus to the actual classroom and not district office positions. And much of our data in prior is key that what are the vacancies in actual classrooms when they need to serve students. So just wanted to share that clarity in regard to the changes of those numbers. We are now reporting and separating out the vacant districts provide vacancies for all certified positions. We're narrowing down to this certified position that actually work with children as teachers. And the additional data that's requested is excellent of like how many of those movements are actually internal movements and how much are leading the state or leading their education as well. So I just wanted to add that clarity and that additional detail from the prior data that is presented by districts and what we collect. We've asked them to narrow it down to your teacher certifications. Thank you. Thank you very much commissioner and next in the queue. I have co-chair him shoot Thank You Chair's story chair Galvin I Want to go back to the commissioner if it's okay on the same line of questioning you wanted to bring clarity And I think I lost focus because I'm completely muddled First hit first day teacher vacancies indicates certified so slide 19 certified teachers So when you say the ones in front of students like so you're saying exclude say a certified teacher coach Is that who's not included here or I need a little more description of who we're not looking at on this slide Like what changed from 24 to 25 in the data that's used to generate this line Through the chair to education co-chair Hymshoot. That's a great question. What we eliminated from this slide and separated out when districts report first aid vacancies for certified positions, they are looking at all their certified if they have an opening in their school district. They look at is it certified or non-certified? And then they report that what we've then narrowed down is say we don't positions that are in your district office as teacher experts supporting the classrooms. What we really want to identify and especially focus on the TRR work are those teachers that children. And so administrative positions that are certified and need to be certified, we requested and have separated those out for you so that we can actually look at the need of districts of not having classrooms with teachers that are in front of them the first day of school. So the eliminated positions or the separated out, are those that actually have classrooms that are open. For instance, in Anchorage, there's over 200 people in the district office. We're not as the impetus and the crisis isn't really with district-office supports. The crisis is in those classrooms. Co-chair Hymshoot, follow up. Thank you, Chair Galvin, through the chair. So then that distinction that you're drawing, you made all the way back to 2019 just to be clear. So we're comparing apples and apples. I guess to Commissioner. Through the Chair to Representative H And she regrets not being here, she had a family emergency that in 2025, you are, we want to report the real needing classrooms that teachers are experiencing in schools. So that number does reflect the open first day of school that is actually a teacher that should be teaching a classroom. And that could be special education. That could general education, but that they would not have someone in front of students Okay, and I'm going to drill down a little further here through the chair, so what about a certified librarian or a Certified teacher in a, we don't do computer labs anymore? A Certified Teacher who's a Specialist for Gifted or something like that, those are pulled out, I assume? Through the Chair to member Hymshoot, no, if they serve students directly, they are included So librarians teach students, computer teachers teach students. Music teachers, teach students so these are students you know a music is a class. We honor that class so these our non-district office or non administrative support services that see students have a student list that they represent and that they serve. Okay, and then follow-up co-chair him shoot in a time check We are going to need to move on to the next presentation in five minutes Okay looking on slide 20 in combination with slide 19 when I add 2024 together in 2025 together and 2024 it's 594 Total and I suppose I would have to take the emergencies and do it differently and subtract those to get the offset I think my point that I'm trying to make is that steep climate emergency certificates that we see on slide 20 is deeply concerning to me. They may be enrolled in a program and they may be with a mentor and maybe stellar teachers but the fact is they have not met the requirements for a certificate. I'm very concerned about the high number of emergency certificates and as an emergency measure to keep somebody in front of our kids I understand why it's I just really, really fundamentally don't like it. So I guess I'm just making a comment there. My question though is on page 14, slide 14. And this question might be to Deputy Director Manning through the chair. I see this teacher retention and recruitment initiative work. It's all very necessary and I am completely baffled. Educator, Retention and Recruitment Center, doing great work, they were dealing with visa questions. They were doing with TPP, which is now personnel and placement, or teacher and personnel placement. I think, anyway, changed the name, same function, basically. And I don't see them here, and now we've got like Northwest Comprehensive Center doing I'm sure they're fantastic, but that other organization was embedded in a local Alaskan professional organization that knows the districts well. So I am confused, where did the AERRC go? And what have we gained by switching over to the NWCC? There must be a win there. Can someone help me understand? Director. Through the chair, I'll let Commissioner Bishop respond to that. Thank you. Thank you for the record. This is Dina Bishop, Commissioner of Education and through Chair Galvin to Education co-chair Kim Schucht. Just as a little background, I'm going to share two different things. In conjunction to your prior questions about teachers not being in the seats and administrators and that turnover, focused on actual district needs directly where the values at it. A lot of people know I use the word gimbal which is a Japanese term for where the value is added which the classroom and as a classroom teacher and a science teacher I know you know that. But if you recall the teacher retention and recruitment initiative was not created in statute or regulation. It really began through that TRR work as the governor's initiative and the legislation in prior fiscal year's funds to really support that action. But in 2026, the dedicated funding for the initiative was eliminated. If the legislature actually establishes some statutory requirements and designates funding or direct particular activities related to teacher retention, we would absolutely implement that direction consistent with law. But when... obligations involve the use of external contractors. We are required to follow the state of Alaska procurement code and the department is not able to direct fund to any specific organization outside the established procurement process unless explicitly authorized. So As of note, the Alaska Council of School Administrators who ran this is a nonprofit, a tax-exempt corporation, and it's not an agency of the executive branch of state government. So they really would not be exempt from the state of Alaska procurement code. We did eliminate ARK, and we did eliminate the contractor who actually did the TRR work. When we had a limited amount of money, we said, where is the value added? And it was at districts to get teachers and administrators in those seats in those places rather than at the, you know, administrative support level. So in trying to broaden this work, when we had an opportunity through federal grants, as Deputy Director Manning said, those are federal grant. And so we utilize, wait a minute, if we're eliminating a miss work and refocusing funds, let's go to these partners who support Alaska 20, 30 years in this work and have, you know, it's not like they're not familiar with Alaska because this agency center has worked with us, but would that, that decrement to TRR overall had us had to prioritize? And I hope that explains just some of the decisions that were made to move the TRRR work forward. We had was a focus. Thank you. Thank You Commissioner. We have a follow-up co-chair him shoot. Okay, I'll try to wrap it up with this one. I just want to make a comment quickly about can't remember which page, but you talked about modernizing the certification process. I'm really pleased with what you guys are doing there. Again, it worked great for me to get reinstated and so much less laborious than the five years previous when I renewed my certificate. Thank you for that good work, but my question is on page 21 on the visas. And I just want to say, and follow up to the commissioner's comments, the legislature did put the money in to continue the work that was going on at the arc. And so having that eliminated, I understand the pivot within the department, but we did assert ourselves and say what we wanted. So it's frustrating to see you guys having to scramble and go in a different direction. When we were clear about what we we're wanting to see done. So on page 21 on the visas What would be helpful here? We have a crisis with h1b that hasn't resolved yet that I know of Would have been nice to have the arc working on that because they were already deeply involved in that issue, but apparently that's not going to be possible So my question is on this slide The h 1b I think is a three year or a five year and then so we are going to Have some number of these 280 educators are going to be somewhere in the one year, the two year or the three year and then they have to take a break for two years and come back and I'm not, again I don't know exactly what I am saying here but there's going be some number of folks who aren't going to come and that's not reflected here so it would be helpful to know what that gap is going going forward to break this down by who's who is going mandatorily leave. And then there's a million other problems with this scenario, so. Thank you, co-chair, him, shoot. If you'd like to comment on that, I would also appreciate your commenting on the potentiality of districts needing to pay $100,000 per H1B that's already currently in law. So we need to understand what. What you think district should be doing because if we are worried already about it looks like just short of ten Thousand of our children are starting day one in school without a teacher So I'm going to pause on that one for a moment so that we can all imagine what that looks. Like for our state I Can't even imagine God bless every single one of those educators who are still in there and I know what I'm imagining what they're doing is they are combining classes, they pulling in janitors or anyone else to help make sure that they cover throughout. especially in rural Alaska to make sure those kids are with an adult. So we certainly have some concerns. I appreciate your calling out what we're doing with regard to the visas and supporting those particular teachers. I also have one more on in the, you've been so patient, Representative Schwanke. Please join us in this conversation. questions. Number one, the emergency certifications, can someone just help me understand do they include certified teachers that are taking positions from out of state so that they may actually hold certs in another state, so just help understand that. And then the second question I have super quick, the survey that just opened for certified teacher has done that before from the administration. through the chair to Representative Schwanke. To the first question on emergency certified teachers, it does not include out of state teacher. We have an out-of-state teacher transition opportunity. So there's an Out-Of-State teacher certification. So that is specifically for those that do not hold the required education preparation for full professional certification and to your second question, regarding, sorry if you wouldn't mind repeating it. Oh, the survey, yes, thank you. For the Survey, I am not sure if we haven't done this particular survey and I'd have to go back and get information on the last time we may have surveyed. I'm sure we've surveyed educators, but I don't sure when and what that scope would have been. So I can get more information for you? Thank you, Director. And perhaps there we can. look into whether other organizations, it's possible that the Educators Association has also done some of that work. Would be good to get as much as we can to help us see. I appreciate your thinking around a longitudinal sort of study on that, especially if there's been some consistent. numbers. Thank you. Do you have any other follow-ups? No? Okay. Thank You. I appreciate everyone's patience. I know we had to rush through this. Thank you so much, Director Manning, for being here and for allowing us to bring you in again to finish this up. I appreciate that. Thank you to the commissioner. And now we're going to move into the second segment of this meeting. So, what we have next is we're going to have a brief at ease so that we can transition to the next presentation. reconvening so that we can have this wonderful presentation of the Alaska Performance Scholarship and Alaska Education grants from Executive Director of Alaska Commission on Post-Secondary Education, Ms. Thomas. Thank you again for being here. Please bring yourself, you're already here at the desk and please introduce yourself for the record and begin your presentation. Thank you. Good morning. For the record, I'm Kerry Thomas, Executive Director at the Alaska Commission on Postsecondary Education, or ACPE. Thank for the opportunity to speak to the committee this morning, my presentation is structured around the information that was requested from the Committee related to ACPE, the Alaska Performance Scholarship, and the funding and communications around those topics. So quite a number of topics to cover in this presentation. So we'll go ahead and get right into it. The Alaska Commission on Post-Secondary Education is established in statute to administer financial aid programs and interstate compacts for the state. We also serve in an advisory capacity to the governor, the legislature, and post-secondary institutions relative to higher education in Alaska. We administer state institutional authorization and deliver education consumer protection through that function. And we serve as the state's higher-education agency. Relative to the Higher Education Investment Fund, that fund was established in statute as a separate fund for the purpose of making grants and scholarship payments to qualified institutions on behalf of students, and for funding the Whammy Agreements. The Alaska Education Grant established in statute is the state's need-based grant which is funded by the Higher Education Investment Fund and administered by ACPE. This need based grant program provides up to $4,000 per year to eligible students for post-secondary education at qualified institutions in the State. Based on the students with highest financial need, the data FAFSA filing and other prioritization criteria until the funding is exhausted. The financial needs is determined by the student aid index or SAI, which comes from the FafSA. negative 1500 up to 999,999. The lower S.A.I. indicates higher financial need. The Alaska Performance Scholarship was also established in statute and is the state's merit-based scholarship, which is a program for students who meet specific eligibility criteria in high school to qualify for the scholarship. fleet a rigorous curriculum and earn a qualifying GPA or minimum test score. This scholarship program provides up to $28,000 across eight full-time semesters within eight years of high school graduation for use at participating institutions in the state of Alaska. There's also a step-up opportunity for eligible students once they begin their academic program. If they perform well, they can increase their eligibility level. Next, I'll talk about funding sources and levels. If I may, I'm going to ask you sorry to interrupt, but we are going try to get to the 27 slides or 25. So if it's something that we can read, I am going ask to just give me super high level if you wouldn't mind kind of synopsis of that so that in case someone has a question, after hopefully we're all reading these, do that, we will be able to engage with you. I want to make sure to asking you some questions if people have those questions in mind. Thank you so much. Thank you chair This slide just shows how a student's financial aid might be structured and This next slide shows the major state and federal financial um sources and their funding levels over the last two years and I would note there are many other funding sources for students in the state specific to their programs or student groups but This slide depicts the higher education investment funds funding allocation. So every July, the Department of Revenue determines the amount of the Higher Education Investment Fund that's available for award or appropriation for the Alaska Performance Scholarship and Alaska Education Grant. So as shown here, as of June 30th, 2025, the fund's balance was $435 million, which means $30 million is available and that is allocated two-thirds, one-third for APS and AEG. Pardon me. Again, I just want to make sure that there is a slide later in, if not, then we need to be sure to know this now, that this fund is now over $100 million less than what Is there another slide in here where that's reflected. Oh, Chair Galvin. No, it is not reflected here Okay, so for the committee's education I'm gonna make sure that you're aware that this number because we had and the public should know this as well We made some we being the legislature last year The way we pulled our budget together Was to draw from this particular fund and so now the governor and others are working to put to make that fund whole again, but I want to make sure that you're all aware approximately $129 million was taken from this fund. Thank you. Please proceed. Thank You, Chair. In our FY 27 budget for ACPE, we have requested 100% of the available funding for APS from And then I would just note that with the passage of HB 148 and 2024, there have been significant increases far beyond what was envisioned at the time of that legislation related to this program. This slide shows our projections of the future need to provide full scholarships for all APS eligible students. The number reflected for 2026 shows that the supplemental request that's been introduced and then beyond that for the next three years what we think is needed. For the Alaska Education Grant, our FY27 budget also includes 100% of the funds available from the Heave for this program. And I would just note, based on the way they're tied together, any changes in APS funding amounts have a direct impact on AEG funding. And I think on this slide, the key takeaway is that AEG is a fantastic program to provide grant funding to students with high financial need, but the funding that's available just kind of scratches the surface. There are many students in the state that qualify for a need-based grants from the federal Pell program that we just don't have sufficient funding. The next section of this presentation is outcomes and challenges, and I will try to go quickly through this. This slide just shows the number of recipients for the Alaska Education Grant over the last several years. This line demonstrates where those funds go within the state, the various post-secondary institutions and where the students are attending. Relative to APS outcomes, we recently produced the annual outcomes report. You all should have received that. We report on how this program is meeting its goals to have students perform well in high school, prepare for college and career training, perform well on those college career-training programs, and continue to live in Alaska. And I'm happy to report that this program continues to show very positive impacts or meeting all of those goals. This slide depicts the history of the program in terms of dollar spent and students served and the graph on the right shows the implementation of HB 148 in 2025 is the first time we saw that impact. And the upward trajectory of $1 spent on this scholarship. Next, this slide just shows the history from inception of the program to present of the number percent of eligible graduates. And then the slide below that is of those eligible, what percent utilize the scholarship in the fall after their high school graduation? Our funding financial challenges, our funding projections indicate substantial and continued growth based on increased eligibility and usage. We're currently requesting 100% of the calculated appropriation available from the HEAF. We also have limited data since there's only been two graduating classes since the implementation of HB 148. So, we're doing our best to project future funding needs and program outcomes. And then, relative to AEG, there's still significant financial need for students that are high need, and so that's just an ongoing challenge. Additionally, the timing of award notifications continues to be a challenge relative Although the legislation created new earlier notification for students starting in ninth grade and then a preliminary eligibility notification after their junior year, students don't find out they're fully eligible for Due to the structure for funding and it goes to students with the highest financial need, students can't predict if they're going to receive this grant or if they'll continue to received it as they progress through their educational program. We also found during our annual APS survey of students that many students were very unaware that the program had been transformed and improved, how they could gain APS eligibility, and many of the students that we knew were eligible in the survey did not know they were eligible. So if there's still a lot of work to do in communication with students. And then these last few slides, you can refer to, they're just talking about some of the communications, ACPE does relative to financial aid, we communicate with students, parents, educators, legislators, institutions. We have a lot of information on our website as the administrator of Operationalized multi-channel communication strategy with APS and some of the specific activities are listed on this slide. And then the specific requirements established in HB 148 are the last three bullets on this slide. And lastly, this is just for the committee members' information. These are various outreach programs that ACPE offers to the public. And there's a QR code if you want to learn more or access the information Director Thomas, I'm pretty sure you win the award for the most efficient slide presentation covering more information imaginable than any other presenter I think of the building. I don't know if it's of this year or of of the decade but congratulations and thank you so much. I apologize for rushing you through this so much I see already that we have a few in the. Q and I'll leave this to the co-chairs as to how long we can make this go. But I am going to first ask for Representative Schronke if she has a question. Thank you, Chair Galvin. Through the Chair, Ms. Thomas, thank you for the presentation and covering it so efficiently as pointed out. statement in there that the amount of higher education funding available for AEG is proportional to the amount available to APS and then it lays out the two-third to one- third split but then the next bullet says any change to APs funding will directly impact AE G funding so that statement makes me believe that when it how does that work if the split is stated the work if can you explain that? Yes, thank you. Through the Chair, Representative Swonke, it's really either or any change to APS funding directly impacts AEG funding or any changed to EG funding directly impacts APs funding. So historically We have determined how much funding we believe is needed for APS and then the AEG funding amount is essentially by default based on that two-thirds, one-third allocation. If that answers your question? No. Okay. Backing up to slide eight. The statute allows seven percent from the higher education investment fund to be allocated for the total between APS and AEG. And that total is then divided two-thirds, one-third APs and AIG. If we could bring slide eight up, that would be helpful. Oh, thank you. I'm sorry. appreciate that. And so this tries to depict that so if we increase the amount for APS then we need to also increase the amounts for AEG to keep that proportion aligned. Okay I think that makes sense. Okay thank you we're going to have one more question or line of questions and then we do need we have a hard stop in four minutes but I do want to remind everyone on this committee that these folks are great at getting back with us any questions can be asked either via phone or email rep co-chair Hymshoe please thank you I have two quick questions my first one is on slide 24 the other one I don't think is The last bullet points about school districts notify students how do the school districts know that they need to do that and is it happening? So if you're a sophomore you might choose classes according to I want to qualify for the APS and so it's really important that that notification happens. Is it happening and who makes it happen? Does that come from D or does it come academic counselors so anything you can add to that yes thank you through the chair co-chair hymn chute ACPE works with the Department of Education and Early Development to communicate the requirements to districts. And then each district is responsible for how they make those communications. So the information to 9th and 10th graders is general program information about APS. And during the 11th grade year, it's. intended to be the specific requirements each student needs to fulfill the APS requirements prior to graduation. I don't have specific information about how each district is accomplishing cross agency work group that was operating over the last year included a number of school districts or district representatives and they all have discussed different ways that they approach this. So to my knowledge it is happening but I think it looks different in each district. Follow-up. This is really quick and it must be happening because we've seen an uptick so something's happening So that's good. My other question I don't think was in the slides and Alaska is notoriously lowest in The Nation I think 53rd out of 50 states on FAFSA completion So how's that looking are we improving our FafSA Completion because it's part of APS you have to apply for the you. Have to do your FASSA as Part of getting the performance scholarship, correct director Through the chair, co-chair him shoot, that is correct. The FAFSA is the application for the Alaska Performance Scholarship to ensure students are receiving federal aid and other needs-based grants. We are still the lowest in the nation, but we are one of the states with the biggest improvement. We just have so much. of such a big gap to grow or to address. So that's a positive. We are seeing an increase in the number of FAFSA's, but we still do rank low across the country. Okay. Thanks. We'll keep plugging away at that one. Thank you. All right. We have one final question. And then by represent a co-chair story, please. Thank you chair Galvin through the chair. Welcome director Thomas. Thank you for all your efforts. It's so encouraging that we are keeping more of our own for post-secondary in the state. My question has to do with I've noticed on our changes in The Budget that the department that has recommended more funding for the higher education for The Alaska Performance Scholarship I don't know if you can tell me now, but is that money what you are asking for in your presentation? Through the chair, co-chair story, no it is not. So on slide, I'm sorry to flip through it, on Slide 10. This is the projected amount that is estimated to provide all students full scholarships, but we're limited in our budget request to the 7% cap from the Higher Education Investment Fund. And the statute also says if there's insufficient funding, then those scholarships shall be prorated. So our budget request is the limit from the heat. Thank you for that information. Thank-you and for those of you who are tracking that in your blue budget books. There is a line item seven for that particular line item and there are a couple of others in there if you wanted to start tracking the HE fund and requests from this particular section of education. Were there closing comments that you would like to share or were ready? Okay, great. Well, thank you so much again for your presentation and we portion of the Education Subcommittee next week. The next subcommittee will be held Friday, February 13th, from 8 to 10 a.m. And at that hearing, we're going to hear an update on Mount Edgecome and Mount Edgecomb High School, other. residential schools and its budgetary request and then expand the discussion among other schools. The time is now 9.05 and the House Finance Education Subcommittee meeting is adjourned.