00                            HOUSE BILL NO. 262                                                                          
01 "An Act relating to public school funding; and providing for an effective date."                                        
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 14.17 is amended by adding a new section to article 1 to read:                                    
04            Sec. 14.17.495.  Declining funding adjustment.  (a)  In addition to funding                                
05       provided under AS 14.17.410(b) and 14.17.490, if the adjusted ADM in a school                                     
06       district calculated under AS 14.17.410(b)(1)(A) decreases by 10 percent or more from                              
07       one fiscal year to the next, the school district may, subject to appropriation for the                            
08       purpose of this section, use the fiscal year immediately preceding the fiscal year in                             
09       which the decrease occurs as a base fiscal year and offset any reduction in basic need                            
10       under AS 14.17.410(b)(1) according to the following schedule:                                                     
11                 (1)  for the first fiscal year after the base fiscal year, the school district                          
12       is eligible to receive basic need as determined under AS 14.17.410(b)(1) plus 75                                  
13       percent of the difference in basic need between the base fiscal year and the first fiscal                         
14       year after the base fiscal year;                                                                                  
15                 (2)  for the second fiscal year after the base fiscal year, the school                                  

01       district is eligible to receive basic need determined under AS 14.17.410(b)(1) plus 50                            
02       percent of the difference in basic need between the base fiscal year and the second                               
03       fiscal year after the base fiscal year;                                                                           
04                 (3)  for the third fiscal year after the base fiscal year, the school district                          
05       is eligible to receive basic need determined under AS 14.17.410(b)(1) plus 25 percent                             
06       of the difference in basic need between the base fiscal year and the third fiscal year                            
07       after the base fiscal year.                                                                                       
08            (b)  The schedule established in (a) of this section is available to a school                                
09       district for the three fiscal years following the base fiscal year only if the basic need                         
10       determined under AS 14.17.410(b)(1) for each following fiscal year is less than the                               
11       amount of basic need in the base fiscal year.                                                                     
12            (c)  This section does not apply to a decrease in adjusted ADM calculated                                    
13       under AS 14.17.410(b)(1)(A) resulting from a loss of enrollment that occurs as a result                           
14       of a boundary change under AS 29.                                                                                 
15    * Sec. 2.  This Act takes effect July 1, 2003.