HB 245: "An Act repealing the required local contribution to school funding; making conforming changes; and providing for an effective date."
00 HOUSE BILL NO. 245 01 "An Act repealing the required local contribution to school funding; making 02 conforming changes; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.12.020(c) is amended to read: 05 (c) The legislature shall provide the state money necessary to maintain and 06 operate districts of the state public school system described in AS 14.12.010 [THE 07 REGIONAL EDUCATIONAL ATTENDANCE AREAS]. The borough assembly for 08 a borough school district, and the city council for a city school district, may [SHALL] 09 provide [THE] money for a local contribution under AS 14.17.410(c) [THAT 10 MUST BE RAISED] from local sources to maintain and operate the district. 11 * Sec. 2. AS 14.17.410(b) is amended to read: 12 (b) Public school funding consists of state aid [, A REQUIRED LOCAL 13 CONTRIBUTION,] and eligible federal impact aid determined as follows: 14 (1) state aid equals basic need minus [A REQUIRED LOCAL
01 CONTRIBUTION AND] 90 percent of eligible federal impact aid for that fiscal year; 02 basic need equals the sum obtained under (D) of this paragraph, multiplied by the base 03 student allocation set out in AS 14.17.470; district adjusted ADM is calculated as 04 follows: 05 (A) the ADM of each school in the district is calculated by 06 applying the school size factor to the student count as set out in AS 14.17.450; 07 (B) the number obtained under (A) of this paragraph is 08 multiplied by the district cost factor described in AS 14.17.460; 09 (C) the ADMs of each school in a district, as adjusted 10 according to (A) and (B) of this paragraph, are added; the sum is then 11 multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 12 secondary school vocational and technical instruction funding factor set out in 13 AS 14.17.420(a)(3); 14 (D) the number obtained for intensive services under 15 AS 14.17.420(a)(2) and the number obtained for correspondence study under 16 AS 14.17.430 are added to the number obtained under (C) of this paragraph; 17 (E) notwithstanding (A) - (C) of this paragraph, if a school 18 district's ADM adjusted for school size under (A) of this paragraph decreases 19 by five percent or more from one fiscal year to the next fiscal year, the school 20 district may use the last fiscal year before the decrease as a base fiscal year to 21 offset the decrease, according to the following method: 22 (i) for the first fiscal year after the base fiscal year 23 determined under this subparagraph, the school district's ADM adjusted 24 for school size determined under (A) of this paragraph is calculated as 25 the district's ADM adjusted for school size, plus 75 percent of the 26 difference in the district's ADM adjusted for school size between the 27 base fiscal year and the first fiscal year after the base fiscal year; 28 (ii) for the second 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 50 percent of the
01 difference in the district's ADM adjusted for school size between the 02 base fiscal year and the second fiscal year after the base fiscal year; 03 (iii) for the third 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 25 percent of the 07 difference in the district's ADM adjusted for school size between the 08 base fiscal year and the third fiscal year after the base fiscal year; 09 (F) the method established in (E) of this paragraph is available 10 to a school district for the three fiscal years following the base fiscal year 11 determined under (E) of this paragraph only if the district's ADM adjusted for 12 school size determined under (A) of this paragraph for each fiscal year is less 13 than the district's ADM adjusted for school size in the base fiscal year; 14 (G) the method established in (E) of this paragraph does not 15 apply to a decrease in the district's ADM adjusted for school size resulting 16 from a loss of enrollment that occurs as a result of a boundary change under 17 AS 29; 18 (2) the required local contribution of a city or borough school district is 19 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 20 personal property in the district as of January 1 of the second preceding fiscal year, as 21 determined by the Department of Commerce, Community, and Economic 22 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 23 district's basic need for the preceding fiscal year as determined under (1) of this 24 subsection. 25 * Sec. 3. AS 14.17.410(c) is amended to read: 26 (c) A [IN ADDITION TO THE LOCAL CONTRIBUTION REQUIRED 27 UNDER (b)(2) OF THIS SECTION, A] city or borough school district in a fiscal year 28 may make a local contribution of not more than the greater of 29 (1) the equivalent of a two mill tax levy on the full and true value of 30 the taxable real and personal property in the district as of January 1 of the second 31 preceding fiscal year, as determined by the Department of Commerce, Community,
01 and Economic Development under AS 14.17.510 and AS 29.45.110; or 02 (2) 23 percent of the district's basic need for the fiscal year under 03 (b)(1) of this section. 04 * Sec. 4. AS 14.17.490(a) is amended to read: 05 (a) Except as provided in (c) - (e) [(b) - (e)] of this section, if, in fiscal year 06 1999, a city or borough school district or a regional educational attendance area would 07 receive less public school funding under AS 14.17.410 than the district or area would 08 have received as state aid, the district or area is, in each fiscal year, eligible to receive 09 additional public school funding equal to the difference between the public school 10 funding the district or area was eligible to receive under AS 14.17.410 in fiscal year 11 1999 and the state aid the district or area would have received in fiscal year 1999. 12 * Sec. 5. AS 14.17.510(a) is amended to read: 13 (a) To determine the maximum [AMOUNT OF REQUIRED] local 14 contribution under AS 14.17.410(c) [AS 14.17.410(b)(2)] and to aid the department 15 and the legislature in planning, the Department of Commerce, Community, and 16 Economic Development, in consultation with the assessor for each district in a city or 17 borough, shall determine the full and true value of the taxable real and personal 18 property in each district in a city or borough. If there is no local assessor or current 19 local assessment for a city or borough school district, then the Department of 20 Commerce, Community, and Economic Development shall make the determination of 21 full and true value guided by AS 29.45.110 and based on a determination of full and 22 true value made by the state assessor at least every two years using the best 23 information available, including on-site inspections made by the state assessor in each 24 of those districts at least once every four years. For purposes of this subsection, the 25 full and true value of taxable real and personal property in any area detached shall be 26 excluded from the determination of the full and true value of the municipality from 27 which the property was detached for the two years immediately preceding the 28 effective date of the detachment. Also, in making the determination for a municipality 29 that is a school district, or for a city that is within a borough school district, the 30 assessed value of property taxable under AS 43.56 shall be excluded if a tax is not 31 levied under AS 29.45.080 by the municipality that is the school district. The
01 determination of full and true value shall be made by October 1 and sent by certified 02 mail, return receipt requested, on or before that date to the president of the school 03 board in each city or borough school district. Duplicate copies shall be sent to the 04 commissioner. The governing body of a city or borough that is a school district may 05 obtain judicial review of the determination. The superior court may modify the 06 determination of the Department of Commerce, Community, and Economic 07 Development only upon a finding of abuse of discretion or upon a finding that there is 08 no substantial evidence to support the determination. 09 * Sec. 6. AS 14.17.410(b)(2), 14.17.410(d), 14.17.410(e), 14.17.410(f), and 14.17.490(b) 10 are repealed. 11 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 RETROACTIVITY EFFECT. If this Act takes effect after July 1, 2014, it is 14 retroactive to July 1, 2014. 15 * Sec. 8. This Act takes effect July 1, 2014.