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SB 178: "An Act relating to school funding, the base student allocation, district cost factors, the local contribution, and the intensive services adjustment for state funding of public education; providing for an effective date by repealing the delayed effective date of sec. 6, ch. 41, SLA 2006; and providing for an effective date."

00 SENATE BILL NO. 178 01 "An Act relating to school funding, the base student allocation, district cost factors, the 02 local contribution, and the intensive services adjustment for state funding of public 03 education; providing for an effective date by repealing the delayed effective date of sec. 04 6, ch. 41, SLA 2006; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 14.17.410(b) is amended to read: 07 (b) Public school funding consists of state aid, a required local contribution, 08 and eligible federal impact aid determined as follows: 09 (1) state aid equals basic need minus a required local contribution and 10 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 11 obtained under (D) of this paragraph, multiplied by the base student allocation set out 12 in AS 14.17.470; district adjusted ADM is calculated as follows: 13 (A) the ADM of each school in the district is calculated by 14 applying the school size factor to the student count as set out in AS 14.17.450;

01 (B) the number obtained under (A) of this paragraph is 02 multiplied by the district cost factor described in AS 14.17.460; 03 (C) the ADMs of each school in a district, as adjusted 04 according to (A) and (B) of this paragraph, are added; the sum is then 05 multiplied by the special needs factor set out in AS 14.17.420(a)(1); 06 (D) the number obtained for intensive services under 07 AS 14.17.420(a)(2) and the number obtained for correspondence study under 08 AS 14.17.430 are added to the number obtained under (C) of this paragraph; 09 (E) notwithstanding (A) - (C) of this paragraph, if a school 10 district's ADM adjusted for school size under (A) of this paragraph 11 decreases by five percent or more from one fiscal year to the next fiscal 12 year, the school district may use the last fiscal year before the decrease as 13 a base fiscal year to offset the decrease, according to the following method: 14 (i) for the first fiscal year after the base fiscal year 15 determined under this subparagraph, the school district's ADM 16 adjusted for school size determined under (A) of this paragraph is 17 calculated as the district's ADM adjusted for school size, plus 75 18 percent of the difference in the district's ADM adjusted for school 19 size between the base fiscal year and the first fiscal year after the 20 base fiscal year; 21 (ii) for the second fiscal year after the base fiscal 22 year determined under this subparagraph, the school district's 23 ADM adjusted for school size determined under (A) of this 24 paragraph is calculated as the district's ADM adjusted for school 25 size, plus 50 percent of the difference in the district's ADM 26 adjusted for school size between the base fiscal year and the second 27 fiscal year after the base fiscal year; 28 (iii) for the third fiscal year after the base fiscal year 29 determined under this subparagraph, the school district's ADM 30 adjusted for school size determined under (A) of this paragraph is 31 calculated as the district's ADM adjusted for school size, plus 25

01 percent of the difference in the district's ADM adjusted for school 02 size between the base fiscal year and the third fiscal year after the 03 base fiscal year; 04 (F) the method established in (E) of this paragraph is 05 available to a school district for the three fiscal years following the base 06 fiscal year determined under (E) of this paragraph only if the district's 07 ADM adjusted for school size determined under (A) of this paragraph for 08 each fiscal year is less than the district's ADM adjusted for school size in 09 the base fiscal year; 10 (G) the method established in (E) of this paragraph does 11 not apply to a decrease in the district's ADM adjusted for school size 12 resulting from a loss of enrollment that occurs as a result of a boundary 13 change under AS 29; 14 (2) the required local contribution of a city or borough school district is 15 the equivalent of a three [FOUR] mill tax levy on the full and true value of the taxable 16 real and personal property in the district as of January 1 of the second preceding fiscal 17 year, as determined by the Department of Commerce, Community, and Economic 18 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 19 district's basic need for the preceding fiscal year as determined under (1) of this 20 subsection. 21 * Sec. 2. AS 14.17.420(a) is amended to read: 22 (a) As a component of public school funding, a district is eligible for special 23 needs funding and may be eligible for intensive services funding as follows: 24 (1) special needs funding is available to a district to assist the district 25 in providing special education, gifted and talented education, vocational education, 26 and bilingual education services to its students; a special needs funding factor of 1.20 27 shall be applied as set out in AS 14.17.410(b)(1); 28 (2) in addition to the special needs funding for which a district is 29 eligible under (1) of this subsection, a district is eligible for intensive services funding 30 for each special education student who needs and receives intensive services and is 31 enrolled on the last day of the count period; for each such student, intensive services

01 funding is equal to 02 (A) two percent of the district's ADM, excluding 03 correspondence students, multiplied by five for a district with an ADM of 04 at least 1,000; 05 (B) the intensive student count multiplied by five for all other 06 districts. 07 * Sec. 3. AS 14.17.460(a) is amended to read: 08 (a) For purposes of calculating a district's adjusted ADM under 09 AS 14.17.410(b)(1), the district cost factor for a school district is as follows: 10 DISTRICT DISTRICT COST FACTOR 11 Alaska Gateway 1.443 [1.367] 12 Aleutians East 1.707 [1.565] 13 Aleutians Region 1.838 [1.787] 14 Anchorage 1.000 15 Annette Island 1.175 [1.093] 16 Bering Strait 1.762 [1.643] 17 Bristol Bay 1.370 [1.316] 18 Chatham 1.348 [1.234] 19 Chugach 1.395 [1.345] 20 Copper River 1.246 [1.211] 21 Cordova 1.165 [1.131] 22 Craig 1.108 [1.059] 23 Delta/Greely 1.174 [1.140] 24 Denali 1.323 [1.318] 25 Dillingham 1.300 [1.277] 26 Fairbanks 1.055 [1.047] 27 Galena 1.370 [1.359] 28 Haines 1.104 [1.056] 29 Hoonah 1.227 [1.141] 30 Hydaburg 1.295 [1.190] 31 Iditarod 1.658 [1.564]

01 Juneau 1.075 [1.040] 02 Kake 1.242 [1.134] 03 Kashunamiut 1.504 [1.447] 04 Kenai Peninsula 1.088 [1.046] 05 Ketchikan 1.085 [1.043] 06 Klawock 1.160 [1.088] 07 Kodiak Island 1.191 [1.142] 08 Kuspuk 1.584 [1.509] 09 Lake and Peninsula 1.776 [1.667] 10 Lower Kuskokwim 1.577 [1.534] 11 Lower Yukon 1.650 [1.544] 12 Matanuska-Susitna 1.040 [1.025] 13 Mt. Edgecumbe 1.098 [1.049] 14 Nenana 1.304 [1.287] 15 Nome 1.385 [1.352] 16 North Slope 1.648 [1.576] 17 Northwest Arctic 1.686 [1.618] 18 Pelican 1.384 [1.337] 19 Petersburg 1.122 [1.061] 20 Pribilof 1.555 [1.487] 21 Sitka 1.098 [1.049] 22 Skagway 1.159 [1.151] 23 Southeast Island 1.264 [1.194] 24 Southwest Region 1.554 [1.489] 25 St. Mary's 1.488 [1.419] 26 Tanana 1.641 [1.569] 27 Unalaska 1.343 [1.294] 28 Valdez 1.133 [1.114] 29 Wrangell 1.080 [1.040] 30 Yakutat 1.229 [1.138] 31 Yukon Flats 1.892 [1.780]

01 Yukon/Koyukuk 1.669 [1.585] 02 Yupiit 1.596[1.533]. 03 * Sec. 4. AS 14.17.470 is amended to read: 04 Sec. 14.17.470. Base student allocation. The base student allocation is $5,580 05 [$5,380]. 06 * Sec. 5. AS 14.17.490(b) is amended to read: 07 (b) A city or borough school district is not eligible for additional funding 08 authorized under (a) of this section unless, during the fiscal year in which the district 09 receives funding under (a) of this section, the district received a local contribution 10 equal to at least the equivalent of a three [FOUR] mill tax levy on the full and true 11 value of the taxable real and personal property in the district as of January 1 of the 12 second preceding fiscal year as determined by the Department of Commerce, 13 Community, and Economic Development under AS 14.17.510 and AS 29.45.110. 14 * Sec. 6. AS 14.17.510(c) is repealed. 15 * Sec. 7. Section 6, ch. 41, SLA 2006, is repealed. 16 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 RETROACTIVITY. If this Act takes effect after July 1, 2007, secs. 1 - 3, 5 - 7, and 9 19 of this Act are retroactive to July 1, 2007. 20 * Sec. 9. Section 11, ch. 41, SLA 2006, providing an effective date for AS 14.17.460(a), as 21 amended by sec. 6, ch. 41, SLA 2006, is repealed. 22 * Sec. 10. Section 4 of this Act takes effect July 1, 2008. 23 * Sec. 11. Section 8 of this Act takes effect immediately under AS 01.10.070(c). 24 * Sec. 12. Except as provided in secs. 10 and 11 of this Act, this Act takes effect July 1, 25 2007.