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Enrolled SB 182: Amending the amount of state funding provided to school districts for pupil transportation; relating to the local contribution for public education; relating to the vocational and technical instruction funding factor for public school funding; establishing in the Department of Education and Early Development a voluntary parent and early childhood education program for pre-elementary aged children; and providing for an effective date.

00Enrolled SB 182 01 Amending the amount of state funding provided to school districts for pupil transportation; 02 relating to the local contribution for public education; relating to the vocational and technical 03 instruction funding factor for public school funding; establishing in the Department of 04 Education and Early Development a voluntary parent and early childhood education program 05 for pre-elementary aged children; and providing for an effective date. 06 _______________ 07 * Section 1. AS 14.09.010(a) is repealed and reenacted to read: 08 (a) A school district that provides student transportation services for the 09 transportation of students who reside a distance from established schools is eligible to 10 receive funding for operating or subcontracting the operation of the transportation 11 system for students to and from the schools within the student's transportation service 12 area. Subject to appropriation, the amount of funding provided by the state for

01 operating the student transportation system is the amount of a school district's ADM, 02 less the ADM for the district's correspondence programs during the current fiscal year, 03 multiplied by the per student amount for the school district as follows: 04 DISTRICT PER STUDENT AMOUNT 05 (1) (2) 06 for the school for the school 07 year beginning years beginning 08 July 1, 2011 on or after 09 July 1, 2012 10 Alaska Gateway $2,081 $2,148 11 Aleutians East 311 321 12 Anchorage 435 449 13 Annette Island 182 188 14 Bering Strait 48 50 15 Bristol Bay 2,672 2,758 16 Chatham 280 289 17 Copper River 1,586 1,637 18 Cordova 335 346 19 Craig 423 437 20 Delta/Greely 1,656 1,709 21 Denali 1,808 1,866 22 Dillingham 1,218 1,257 23 Fairbanks 817 843 24 Galena 255 263 25 Haines 626 646 26 Hoonah 298 308 27 Iditarod 211 218 28 Juneau 604 623 29 Kake 271 280 30 Kashunamiut 5 5 31 Kenai Peninsula 766 944

01 Ketchikan 727 750 02 Klawock 584 603 03 Kodiak Island 799 825 04 Kuspuk 654 675 05 Lake and Peninsula 384 396 06 Lower Kuskokwim 277 286 07 Lower Yukon 1 1 08 Matanuska-Susitna 910 939 09 Nenana 587 606 10 Nome 621 641 11 North Slope 1,120 1,156 12 Northwest Arctic 25 26 13 Pelican 72 74 14 Petersburg 374 386 15 Saint Mary's 193 199 16 Sitka 428 442 17 Skagway 36 37 18 Southeast Island 1,155 1,192 19 Southwest Region 598 617 20 Tanana 478 493 21 Unalaska 648 669 22 Valdez 735 759 23 Wrangell 701 723 24 Yakutat 744 768 25 Yukon Flats 264 272 26 Yukon/Koyukuk 299 309 27 Yupiit 2 2. 28 * Sec. 2. AS 14.09.010 is amended by adding a new subsection to read: 29 (d) The department shall adopt regulations that provide for oversight of and 30 support to school districts in achieving a safe and cost-effective student transportation 31 system. The regulations must include a requirement for contract terms of not less than

01 three years, if feasible, standardized conditions and bid periods, and standards that 02 ensure cost efficiencies and exclusions. 03 * Sec. 3. AS 14.17.410(b) is amended to read: 04 (b) Public school funding consists of state aid, a required local contribution, 05 and eligible federal impact aid determined as follows: 06 (1) state aid equals basic need minus a required local contribution and 07 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 08 obtained under (D) of this paragraph, multiplied by the base student allocation set out 09 in AS 14.17.470; district adjusted ADM is calculated as follows: 10 (A) the ADM of each school in the district is calculated by 11 applying the school size factor to the student count as set out in AS 14.17.450; 12 (B) the number obtained under (A) of this paragraph is 13 multiplied by the district cost factor described in AS 14.17.460; 14 (C) the ADMs of each school in a district, as adjusted 15 according to (A) and (B) of this paragraph, are added; the sum is then 16 multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 17 secondary school vocational and technical instruction funding [HIGH 18 SCHOOL VOCATIONAL EDUCATION] factor set out in 19 AS 14.17.420(a)(3); 20 (D) the number obtained for intensive services under 21 AS 14.17.420(a)(2) and the number obtained for correspondence study under 22 AS 14.17.430 are added to the number obtained under (C) of this paragraph; 23 (E) notwithstanding (A) - (C) of this paragraph, if a school 24 district's ADM adjusted for school size under (A) of this paragraph decreases 25 by five percent or more from one fiscal year to the next fiscal year, the school 26 district may use the last fiscal year before the decrease as a base fiscal year to 27 offset the decrease, according to the following method: 28 (i) for the first fiscal year after the base fiscal year 29 determined under this subparagraph, the school district's ADM adjusted 30 for school size determined under (A) of this paragraph is calculated as 31 the district's ADM adjusted for school size, plus 75 percent of the

01 difference in the district's ADM adjusted for school size between the 02 base fiscal year and the first fiscal year after the base fiscal year; 03 (ii) for the second fiscal year after the base fiscal year 04 determined under this subparagraph, the school district's ADM adjusted 05 for school size determined under (A) of this paragraph is calculated as 06 the district's ADM adjusted for school size, plus 50 percent of the 07 difference in the district's ADM adjusted for school size between the 08 base fiscal year and the second fiscal year after the base fiscal year; 09 (iii) for the third fiscal year after the base fiscal year 10 determined under this subparagraph, the school district's ADM adjusted 11 for school size determined under (A) of this paragraph is calculated as 12 the district's ADM adjusted for school size, plus 25 percent of the 13 difference in the district's ADM adjusted for school size between the 14 base fiscal year and the third fiscal year after the base fiscal year; 15 (F) the method established in (E) of this paragraph is available 16 to a school district for the three fiscal years following the base fiscal year 17 determined under (E) of this paragraph only if the district's ADM adjusted for 18 school size determined under (A) of this paragraph for each fiscal year is less 19 than the district's ADM adjusted for school size in the base fiscal year; 20 (G) the method established in (E) of this paragraph does not 21 apply to a decrease in the district's ADM adjusted for school size resulting 22 from a loss of enrollment that occurs as a result of a boundary change under 23 AS 29; 24 (2) the required local contribution of a city or borough school district is 25 the equivalent of a 2.65 [FOUR] mill tax levy on the full and true value of the taxable 26 real and personal property in the district as of January 1 of the second preceding fiscal 27 year, as determined by the Department of Commerce, Community, and Economic 28 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 29 district's basic need for the preceding fiscal year as determined under (1) of this 30 subsection. 31 * Sec. 4. AS 14.17.410(e) is amended to read:

01 (e) If a city or borough school district is established after July 1, 1998, for the 02 first three fiscal years in which the city or borough school district operates schools, 03 local contributions may be less than the amount that would otherwise be required 04 under (b)(2) of this section, except that 05 (1) in the second fiscal year of operations, local contributions must be 06 at least the greater of 07 (A) the local contributions, excluding federal impact aid, for 08 the previous fiscal year; or 09 (B) the sum of 10 percent of the district's eligible federal 10 impact aid for that year and the equivalent of a one [TWO] mill tax levy on the 11 full and true value of the taxable real and personal property in the city or 12 borough school district as of January 1 of the second preceding fiscal year, as 13 determined by the Department of Commerce, Community, and Economic 14 Development under AS 14.17.510 and AS 29.45.110; and 15 (2) in the third year of operation, local contributions must be at least 16 the greater of 17 (A) the local contributions, excluding federal impact aid, for 18 the previous fiscal year; or 19 (B) the sum of 10 percent of the district's eligible federal 20 impact aid for that year and the equivalent of a two [THREE] mill tax levy on 21 the full and true value of the taxable real and personal property in the district as 22 of January 1 of the second preceding fiscal year, as determined by the 23 Department of Commerce, Community, and Economic Development under 24 AS 14.17.510 and AS 29.45.110. 25 * Sec. 5. AS 14.17.420(a) is amended to read: 26 (a) As a component of public school funding, a district is eligible for special 27 needs and secondary [HIGH] school vocational and technical instruction funding and 28 may be eligible for intensive services funding as follows: 29 (1) special needs funding is available to a district to assist the district 30 in providing special education, gifted and talented education, vocational education, 31 and bilingual education services to its students; a special needs funding factor of 1.20

01 shall be applied as set out in AS 14.17.410(b)(1); 02 (2) in addition to the special needs funding for which a district is 03 eligible under (1) of this subsection, a district is eligible for intensive services funding 04 for each special education student who needs and receives intensive services and is 05 enrolled on the last day of the count period; for each such student, intensive services 06 funding is equal to the intensive student count multiplied by 13; 07 (3) in addition to the special needs and intensive services funding 08 available under (1) and (2) of this subsection, secondary [HIGH] school vocational 09 and technical instruction funding is available to assist districts in providing vocational 10 and technical instruction to students who are enrolled in a secondary school; a 11 secondary [GRADES NINE THROUGH 12; A HIGH] school vocational and 12 technical instruction funding factor of 1.015 [1.01] shall be applied as set out in 13 AS 14.17.410(b)(1); in this paragraph, "vocational and technical instruction" excludes 14 costs associated with 15 (A) administrative expenses; and 16 (B) instruction in general literacy, mathematics, and job 17 readiness skills. 18 * Sec. 6. AS 14.17.440(a) is amended to read: 19 (a) Except as provided in AS 14.17.400(b), funding for state boarding schools 20 established under AS 14.16.010 includes an allocation from the public education fund 21 in an amount calculated by 22 (1) determining the ADM of state boarding schools by applying the 23 school size factor to the student count as described in AS 14.17.450; 24 (2) multiplying the number obtained under (1) of this subsection by the 25 special needs factor in AS 14.17.420(a)(1) and the secondary school vocational and 26 technical instruction funding [HIGH SCHOOL VOCATIONAL EDUCATION] 27 factor set out in AS 14.17.420(a)(3) and multiplying that product by the base student 28 allocation; and 29 (3) multiplying the product determined under (2) of this subsection by 30 the district cost factor that is applicable to calculation of the state aid for the adjacent 31 school district under AS 14.17.460.

01 * Sec. 7. AS 14.17.490(b) is amended to read: 02 (b) A city or borough school district is not eligible for additional funding 03 authorized under (a) of this section unless, during the fiscal year in which the district 04 receives funding under (a) of this section, the district received a local contribution 05 equal to at least the equivalent of a 2.65 [FOUR] mill tax levy on the full and true 06 value of the taxable real and personal property in the district as of January 1 of the 07 second preceding fiscal year as determined by the Department of Commerce, 08 Community, and Economic Development under AS 14.17.510 and AS 29.45.110. 09 * Sec. 8. AS 14.17.510(c) is repealed. 10 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 STUDENT TRANSPORTATION FUNDING ADJUSTMENT. For fiscal years 2014 13 and 2015, funding provided to a school district under AS 14.09.010(a), as repealed and 14 reenacted in sec. 1 of this Act, shall be adjusted annually on October 1 by multiplying the 15 total amount of funding under that section for the previous fiscal year by 1.5 percent. 16 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 PARENTS AS TEACHERS PROGRAM ESTABLISHED. (a) The department shall 19 devise and implement a statewide parents as teachers program for the benefit of children who 20 are under five years of age. The program must provide a system of early childhood education 21 that 22 (1) is evidence-based; 23 (2) involves parents; 24 (3) is consistent with available research and best practices for high quality 25 early childhood education; 26 (4) incorporates guidelines adopted by the department for early learning that 27 (A) enhances school readiness; 28 (B) increases parent understanding of child development and 29 developmental milestones; 30 (C) reduces the incidence of child abuse and neglect; 31 (D) increases identification of health problems and developmental

01 delays through regular screenings; 02 (E) improves child health indicators, including immunization rates; 03 (F) increases parental involvement; and 04 (5) provides for effective and efficient coordination with or expansion of pre- 05 elementary education programs operating in the state, to the extent permitted by law. 06 (b) A school district shall, to the extent space is needed and available, provide for the 07 use of a room in a school at no charge to support the program established under this section. 08 (c) The department shall develop and enter into local partnerships to implement the 09 program established under this section. 10 (d) On or before January 15, 2015, the department shall provide a report to the 11 legislature on the effectiveness and participation rates of the program established in this 12 section. The report must include measures of efficiency and effectiveness that demonstrate the 13 effects of the program on school readiness. 14 (e) The program established under this section terminates on July 1, 2015. 15 (f) In this section, "department" means the Department of Education and Early 16 Development. 17 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 RETROACTIVE EFFECT. If sec. 1 of this Act takes effect after June 30, 2012, sec. 1 20 of this Act is retroactive to June 30, 2012. 21 * Sec. 12. Section 1 of this Act takes effect June 30, 2012. 22 * Sec. 13. Except as provided in sec. 12 of this Act, this Act takes effect July 1, 2012.