Members Present: Sen. Howard Stephenson, Co-Chair

Rep. Marda Dillree, Co-Chair

Sen. Karen Hale

Rep. Duane Bourdeaux

Rep. Judy Ann Buffmire

Rep. Tom Hatch

Rep. Brad King

Rep. Karen Morgan

Rep. Glenn L. Way

Members Absent: Sen. Bill Hickman

Sen. John Valentine

Rep. Doug Aagard

Rep. Glenn Donnelson

Rep. James Ferrin

Rep. J. Morgan Philpot

Rep. John Swallow

Staff Present: R. Michael Kjar, Legislative Fiscal Analyst

Jonathan Ball, Legislative Fiscal Analyst

Ben Leishman, Legislative Fiscal Analyst

Patrice Shaffer, Secretary

Public Speakers Present: Ms. Karen Derrick, USBA Leg. Co-Chair, SLC School Board

Mr. Steve Norton, Superintendent, Cache County School District

Mr. Steve Peterson, USSA/USBA

Mr. Kim Burningham, Chairman, Utah State Office of Education

Mr. Steven O. Laing, Superintendent, Utah State Office of Education

Mr. Patrick Ogden, Assoc. Supt., Utah State Office of Education

Mr. Jim Eldredge, UEA

Mr. Chad Harris, Governor's Office

Mr. Rich Kendell, Governor's Office

Mr. Mike Bennett, Superintendent, Iron County School District

Ms. Corey L. Rowley, Legislative Coalition for People with Disabilities

Visitor List on File

Committee Co-Chair Stephenson called the meeting to order at 9:25 a.m.

• Utah School Boards Association. Ms. Karen Derrick, Salt Lake City School Board USBA Legislative Co-Chair presented that the Utah School Boards Association's first recommendation would be that Public Education be held harmless from further budget cuts and consider other options. She offered suggestions such as identify fund balances within the state budget, increase the basic tax rate by not allowing float down, reallocate additional highway funds, and delay construction on bonding for capital facilities. If budget cuts are still chosen, Ms. Derrick recommended the following guidelines: provide equity for students in all the districts; minimize student impact; allow flexibility for locally elected school boards, and cut programs that have not yet been implemented. Ms. Derrick mentioned that the Utah State Office of Education's "Public Education Round 4 Budget Cut Scenarios" meets the Utah School Boards Association's recommended criteria. Ms. Derrick provided a copy of the scenarios, as well as handouts explaining per-pupil spending on district administration, and leadership recommendations for FY 03 total cuts. She explained these handouts and also mentioned that the Utah School Boards Association does not recommend consolidation of Utah State Office of Rehabilitation with Workforce Services.

Mr. Steve Norton explained various ways that school districts have used to solve budget reductions. He stressed the need for flexibility for local school boards. Mr. Steve Peterson answered questions from the committee.

• Utah State Office of Education. Mr. Kim Burningham mentioned five points: 1) education is vital to the economic well being of the state; 2) the preference of the USOE is to hold education harmless; 3) USOE recognizes times are difficult and cuts may be necessary; 4) it is important to maintain flexibility in school districts; and 5) stressed the need to seriously look at finding new revenue resources so that decline in education does not continue.

Mr. Steven Laing brought attention to line 4) U-PASS (UBSCT 1 year delay) and other line 4) USOE Miscellaneous Cuts, lines 10-13 and line 15 of the Public Education Round 4 Budget Cut Scenarios. He also recommended that they don't move USOR to Workforce Services.

• Utah Education Association. Mr. Jim Eldredge mentioned that even though he didn't come with specific recommendations, he agrees with the proposals from the Utah School Boards Association. He expressed support for what the committee is trying to do, as well as appreciation for the high level of consideration given to education. Mr. Eldredge responded to questions regarding the increased cost for health insurance and step and lane salary increases.

4. Governor's Office. Mr. Rich Kendell recommended to hold schools harmless. He addressed the $3,000,000 allocated for the high-tech charter high schools and explained the impact cuts would have on a grant provided by the Gates Foundation. Mr. Kendell explained the status of the high schools. He mentioned that they would only need to have $1,500,000 to $2,000,000 of the funding this year.

• Other responses. Mr. Mike Bennett, Iron County School District, explained the effect of cuts on class size and teacher's salaries. He asked that they not cut education. He answered questions on how the teachers in his district made decisions regarding budget cuts. Handout given explaining position of Iron County School District.

Ms. Corey L. Rowley, Legislative Coalition for People with Disabilities, shared her story and provided a position paper from the Coalition. This position indicated that they do not support relocating USOR under the Department of Workforce Services, and provided recommendations for cuts.