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HB 406: "An Act relating to the calculation of state aid for schools that consolidate; relating to the determination of the number of schools in a district; and providing for an effective date."

00                             HOUSE BILL NO. 406                                                                          
01 "An Act relating to the calculation of state aid for schools that consolidate; relating to                              
02 the determination of the number of schools in a district; and providing for an effective                                
03 date."                                                                                                                  
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 14.17.410(b) is amended to read:                                                                   
06            (b)  Public school funding consists of state aid, a required local contribution,                             
07       and eligible federal impact aid determined as follows:                                                            
08                 (1)  state aid equals basic need minus a required local contribution and                                
09       90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum                         
10       obtained under (D) of this paragraph, multiplied by the base student allocation set out                           
11       in AS 14.17.470; district adjusted ADM is calculated as follows:                                                  
12                      (A)  the ADM of each school in the district is calculated by                                       
13 applying the school size factor to the student count as set out in AS 14.17.450;                                        
14 (B)  the number obtained under (A) of this paragraph is                                                                 
01            multiplied by the district cost factor described in AS 14.17.460;                                            
02 (C)  the ADMs of each school in a district, as adjusted                                                                 
03 according to (A) and (B) of this paragraph, are added; the sum is then                                                  
04 multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the                                            
05 secondary school vocational and technical instruction funding factor set out in                                         
06            AS 14.17.420(a)(3);                                                                                          
07 (D)  the number obtained for intensive services under                                                                   
08 AS 14.17.420(a)(2) and the number obtained for correspondence study under                                               
09 AS 14.17.430 are added to the number obtained under (C) of this paragraph or                                        
10            under (H) and (I) of this paragraph;                                                                     
11 (E)  notwithstanding (A) - (C) of this paragraph, if a school                                                           
12 district's ADM adjusted for school size under (A) of this paragraph decreases                                           
13 by five percent or more from one fiscal year to the next fiscal year, the school                                        
14 district may use the last fiscal year before the decrease as a base fiscal year to                                      
15            offset the decrease, according to the following method:                                                      
16 (i)  for the first fiscal year after the base fiscal year                                                               
17 determined under this subparagraph, the school district's ADM adjusted                                                  
18 for school size determined under (A) of this paragraph is calculated as                                                 
19 the district's ADM adjusted for school size, plus 75 percent of the                                                     
20 difference in the district's ADM adjusted for school size between the                                                   
21                 base fiscal year and the first fiscal year after the base fiscal year;                                  
22 (ii)  for the second 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 50 percent of the                                                     
26 difference in the district's ADM adjusted for school size between the                                                   
27                 base fiscal year and the second 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 adjusted                                                  
30 for school size determined under (A) of this paragraph is calculated as                                                 
31 the district's ADM adjusted for school size, plus 25 percent of the                                                     
01 difference in the district's ADM adjusted for school size between the                                                   
02                 base fiscal year and the third fiscal year after the base fiscal year;                                  
03 (F)  the method established in (E) of this paragraph is available                                                       
04 to a school district for the three fiscal years following the base fiscal year                                          
05 determined under (E) of this paragraph only if the district's ADM adjusted for                                          
06 school size determined under (A) of this paragraph for each fiscal year is less                                         
07            than the district's ADM adjusted for school size in the base fiscal year;                                    
08 (G)  the method established in (E) of this paragraph does not                                                           
09 apply to a decrease in the district's ADM adjusted for school size resulting                                            
10 from a loss of enrollment that occurs as a result of a boundary change under                                            
11            AS 29;                                                                                                       
12 (H)  notwithstanding (A) - (C) of this paragraph, if one or                                                         
13 more schools close and consolidate with one or more other schools in the                                            
14 same community and district and, as a result of the consolidation, state aid                                        
15 generated by the district's ADM of the consolidated schools as adjusted                                             
16 under (A) - (C) of this paragraph decreases, the district may use the last                                          
17 fiscal year before the consolidation as the base fiscal year to offset that                                         
18 decrease for the first four fiscal years following consolidation according to                                       
19            the following method:                                                                                    
20 (i)  for the first two fiscal years after the base fiscal                                                           
21 year, the district's ADM of the consolidated schools as adjusted                                                    
22 under (A) - (C) of this paragraph is calculated by dividing the sum                                                 
23 of the district's ADM of the consolidated schools as adjusted under                                                 
24 (A) - (C) of this paragraph for the base fiscal year by the sum of the                                              
25 district's ADM of the consolidated schools for the base fiscal year                                                 
26 without adjustment, and subtracting the quotient obtained by                                                        
27 dividing the district's ADM of the consolidated schools for the                                                     
28 current fiscal year as adjusted under (A) - (C) of this paragraph by                                                
29 the sum of the district's ADM of the consolidated schools for the                                                   
30 current fiscal year without adjustment, multiplying that number                                                     
31 by the sum of the district's ADM of the consolidated schools for the                                                
01 current fiscal year without adjustment, and adding that number to                                                   
02 the sum of the district's ADM of the consolidated schools for the                                                   
03                 current fiscal year as adjusted under (A) - (C) of this paragraph;                                  
04 (ii)  for the third fiscal year after the base fiscal year,                                                         
05 the district's ADM of the consolidated schools as adjusted under                                                    
06 (A) - (C) of this paragraph is calculated by dividing the sum of the                                                
07 district's ADM of the consolidated schools as adjusted under (A) -                                                  
08 (C) of this paragraph for the base fiscal year by the sum of the                                                    
09 district's ADM of the consolidated schools for the base fiscal year                                                 
10 without adjustment, and subtracting the quotient obtained by                                                        
11 dividing the sum of the district's ADM of the consolidated schools                                                  
12 for the current fiscal year as adjusted under (A) - (C) of this                                                     
13 paragraph by the sum of the district's ADM of the consolidated                                                      
14 schools for the current fiscal year, multiplying that number by the                                                 
15 sum of the district's ADM of the consolidated schools for the                                                       
16 current fiscal year without adjustment, multiplying that number                                                     
17 by 66 percent, and adding that number to the sum of the district's                                                  
18 ADM of the consolidated schools for the current fiscal year as                                                      
19                 adjusted under (A) - (C) of this paragraph;                                                         
20 (iii)  for the fourth fiscal year after the base fiscal                                                             
21 year, the district's ADM of the consolidated schools as adjusted                                                    
22 under (A) - (C) of this paragraph is calculated by dividing the sum                                                 
23 of the district's ADM of the consolidated schools as adjusted under                                                 
24 (A) - (C) of this paragraph for the base fiscal year by the sum of the                                              
25 district's ADM of the consolidated schools for the base fiscal year                                                 
26 without adjustment, and subtracting the quotient obtained by                                                        
27 dividing the sum of the district's ADM of the consolidated schools                                                  
28 for the current fiscal year as adjusted under (A) - (C) of this                                                     
29 paragraph by the sum of the district's ADM of the consolidated                                                      
30 schools for the current fiscal year, multiplying that number by the                                                 
31 sum of the district's ADM of the consolidated schools for the                                                       
01 current fiscal year without adjustment, multiplying that number                                                     
02 by 33 percent, and adding that number to the sum of the district's                                                  
03 ADM of the consolidated schools for the current fiscal year as                                                      
04                 adjusted under (A) - (C) of this paragraph;                                                         
05 (iv)  to calculate the district's state aid for each fiscal                                                         
06 year, the number obtained through the calculation in (i), (ii), or (iii)                                            
07 of this subparagraph is added to the number obtained under (C) of                                                   
08                 this paragraph for the remainder of the district;                                                   
09 (I)  if the state aid calculated under (H)(i) - (iii) of this                                                       
10 paragraph for one of the first four fiscal years after consolidation is less                                        
11 than the state aid calculated under (A) - (C) of this paragraph for that                                            
12 fiscal year, the state aid may not be adjusted under (H) of this paragraph                                          
13            for that fiscal year;                                                                                    
14 (J)  a district may not offset a decrease under both (E) and                                                        
15            (H) of this paragraph in the same fiscal year;                                                           
16 (K)  a district may not offset a decrease under (H) of this                                                         
17 paragraph if a new facility is constructed in the district for the                                                  
18            consolidation;                                                                                           
19 (L)  a district may not reopen and reconsolidate a school                                                           
20 that was consolidated in the district more than once every seven years for                                          
21            purposes of the calculations made under (H) of this paragraph;                                           
22 (M)  a district offsetting a decrease under (H) of this                                                             
23 paragraph shall provide the department with the appropriate calculations                                            
24            for the department to verify;                                                                            
25 (N)  in this paragraph, "community" means an organized                                                              
26 municipality or an unincorporated village that is a social unit if the                                              
27 organized municipality or unincorporated village has a population of less                                           
28            than 2,000 people;                                                                                       
29 (2)  the required local contribution of a city or borough school district is                                            
30 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and                               
31 personal property in the district as of January 1 of the second preceding fiscal year, as                               
01 determined by the Department of Commerce, Community, and Economic                                                       
02 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a                                          
03 district's basic need for the preceding fiscal year as determined under (1) of this                                     
04       subsection.                                                                                                       
05    * Sec. 2. AS 14.17.905 is amended by adding a new subsection to read:                                              
06 (c)  Notwithstanding (a)(2) and (a)(3) of this section, in a community with an                                          
07 ADM of greater than 425 that has only one facility administered as a school for                                         
08 students in grades kindergarten through 12, the number of schools for the community                                     
09       shall be counted under (a)(2) of this section.                                                                    
10    * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to                          
11 read:                                                                                                                   
12       APPLICABILITY. AS 14.17.410(b), as amended by sec. 1 of this Act, applies to                                      
13 schools that consolidate on or after the effective date of this Act.                                                    
14    * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).