HB 280: "An Act relating to education; relating to local contributions of a city or borough school district; relating to school funding; and providing for an effective date."
00 HOUSE BILL NO. 280 01 "An Act relating to education; relating to local contributions of a city or borough school 02 district; relating to school funding; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.03.260(a) is amended to read: 05 (a) A local school board shall provide an approved charter school with an 06 annual program budget. The budget shall be not less than the amount generated by the 07 students enrolled in the charter school less administrative costs retained by the local 08 school district, determined by applying the indirect cost rate approved by the 09 department up to four percent. Costs directly related to charter school facilities, 10 including rent, utilities, and maintenance, may not be included in an annual program 11 budget for the purposes of calculating the four percent cap on administrative costs 12 under this subsection. A local school board shall provide a charter school with a report 13 itemizing the administrative costs retained by the local school board under this section. 14 The "amount generated by students enrolled in the charter school" is to be determined
01 in the same manner as it would be for a student enrolled in another public school in 02 that school district and includes funds generated by grants, appropriations, federal 03 impact aid, [THE REQUIRED LOCAL CONTRIBUTION,] the local contribution 04 under AS 14.17.410(c), special needs under AS 14.17.420(a)(1), and secondary school 05 vocational and technical instruction under AS 14.17.420(a)(3). A school district shall 06 direct state aid under AS 14.11 for the construction or major maintenance of a charter 07 school facility to the charter school that generated the state aid, subject to the same 08 terms and conditions that apply to state aid under AS 14.11 for construction or major 09 maintenance of a school facility that is not a charter school. 10 * Sec. 2. AS 14.12.020(c) is amended to read: 11 (c) The legislature shall provide the state money necessary to maintain and 12 operate districts of the state public school system described in AS 14.12.010 [THE 13 REGIONAL EDUCATIONAL ATTENDANCE AREAS]. The borough assembly for 14 a borough school district, and the city council for a city school district, may [SHALL] 15 provide [THE] money for a local contribution under AS 14.17.410(c) [THAT 16 MUST BE RAISED] from local sources to maintain and operate the district. 17 * Sec. 3. AS 14.17.410(b) is amended to read: 18 (b) Public school funding consists of state aid, a [REQUIRED] local 19 contribution under (c) of this section, and eligible federal impact aid. State 20 [DETERMINED AS FOLLOWS: 21 (1) STATE] aid equals basic need [MINUS A REQUIRED LOCAL 22 CONTRIBUTION] and 90 percent of eligible federal impact aid for that fiscal year. 23 Basic [; BASIC] need equals the sum obtained under (4) [(D)] of this subsection 24 [PARAGRAPH], multiplied by the base student allocation set out in AS 14.17.470. 25 The [;] district adjusted ADM is calculated as follows: 26 (1) [(A)] the ADM of each school in the district is calculated by 27 applying the school size factor to the student count as set out in AS 14.17.450; 28 (2) [(B)] the number obtained under (1) [(A)] of this subsection 29 [PARAGRAPH] is multiplied by the district cost factor described in AS 14.17.460; 30 (3) [(C)] the ADMs of each school in a district, as adjusted according 31 to (1) and (2) [(A) AND (B)] of this subsection [PARAGRAPH], are added; the sum
01 is then multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 02 secondary school vocational and technical instruction funding factor set out in 03 AS 14.17.420(a)(3); 04 (4) [(D)] the number obtained for intensive services under 05 AS 14.17.420(a)(2) and the number obtained for correspondence study under 06 AS 14.17.430 are added to the number obtained under (3) [(C)] of this subsection 07 [PARAGRAPH] or under (8) and (9) [(H) AND (I)] of this subsection 08 [PARAGRAPH]; 09 (5) [(E)] notwithstanding (1) - (3) [(A) - (C)] of this subsection 10 [PARAGRAPH], if a school district's ADM adjusted for school size under (1) [(A)] of 11 this subsection [PARAGRAPH] decreases by five percent or more from one fiscal 12 year to the next fiscal year, the school district may use the last fiscal year before the 13 decrease as a base fiscal year to offset the decrease, according to the following 14 method: 15 (A) [(i)] for the first fiscal year after the base fiscal year 16 determined under this paragraph [SUBPARAGRAPH], the school district's 17 ADM adjusted for school size determined under (1) [(A)] of this subsection 18 [PARAGRAPH] is calculated as the district's ADM adjusted for school size, 19 plus 75 percent of the difference in the district's ADM adjusted for school size 20 between the base fiscal year and the first fiscal year after the base fiscal year; 21 (B) [(ii)] for the second fiscal year after the base fiscal year 22 determined under this paragraph [SUBPARAGRAPH], the school district's 23 ADM adjusted for school size determined under (1) [(A)] of this subsection 24 [PARAGRAPH] is calculated as the district's ADM adjusted for school size, 25 plus 50 percent of the difference in the district's ADM adjusted for school size 26 between the base fiscal year and the second fiscal year after the base fiscal 27 year; 28 (C) [(iii)] for the third fiscal year after the base fiscal year 29 determined under this paragraph [SUBPARAGRAPH], the school district's 30 ADM adjusted for school size determined under (1) [(A)] of this subsection 31 [PARAGRAPH] is calculated as the district's ADM adjusted for school size,
01 plus 25 percent of the difference in the district's ADM adjusted for school size 02 between the base fiscal year and the third fiscal year after the base fiscal year; 03 (6) [(F)] the method established in (5) [(E)] of this subsection 04 [PARAGRAPH] is available to a school district for the three fiscal years following the 05 base fiscal year determined under (5) [(E)] of this subsection [PARAGRAPH] only if 06 the district's ADM adjusted for school size determined under (1) [(A)] of this 07 subsection [PARAGRAPH] for each fiscal year is less than the district's ADM 08 adjusted for school size in the base fiscal year; 09 (7) [(G)] the method established in (5) [(E)] of this subsection 10 [PARAGRAPH] does not apply to a decrease in the district's ADM adjusted for school 11 size resulting from a loss of enrollment that occurs as a result of a boundary change 12 under AS 29; 13 (8) [(H)] notwithstanding (1) - (3) [(A) - (C)] of this subsection 14 [PARAGRAPH], if one or more schools close and consolidate with one or more other 15 schools in the same community and district and, as a result of the consolidation, basic 16 need generated by the district's ADM of the consolidated schools as adjusted under (1) 17 - (3) [(A) - (C)] of this subsection [PARAGRAPH] decreases, the district may use the 18 last fiscal year before the consolidation as the base fiscal year to offset that decrease 19 for the first four fiscal years following consolidation according to the following 20 method: 21 (A) [(i)] for the first two fiscal years after the base fiscal year, 22 the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 23 (C)] of this subsection [PARAGRAPH] is calculated by dividing the sum of 24 the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 25 (C)] of this subsection [PARAGRAPH] for the base fiscal year by the sum of 26 the district's ADM of the consolidated schools for the base fiscal year without 27 adjustment, and subtracting the quotient obtained by dividing the district's 28 ADM of the consolidated schools for the current fiscal year as adjusted under 29 (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH] by the sum of the 30 district's ADM of the consolidated schools for the current fiscal year without 31 adjustment, multiplying that number by the sum of the district's ADM of the
01 consolidated schools for the current fiscal year without adjustment, and adding 02 that number to the sum of the district's ADM of the consolidated schools for 03 the current fiscal year as adjusted under (1) - (3) [(A) - (C)] of this subsection 04 [PARAGRAPH]; 05 (B) [(ii)] for the third fiscal year after the base fiscal year, the 06 district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 07 (C)] of this subsection [PARAGRAPH] is calculated by dividing the sum of 08 the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 09 (C)] of this subsection [PARAGRAPH] for the base fiscal year by the sum of 10 the district's ADM of the consolidated schools for the base fiscal year without 11 adjustment, and subtracting the quotient obtained by dividing the sum of the 12 district's ADM of the consolidated schools for the current fiscal year as 13 adjusted under (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH] by the 14 sum of the district's ADM of the consolidated schools for the current fiscal 15 year, multiplying that number by the sum of the district's ADM of the 16 consolidated schools for the current fiscal year without adjustment, multiplying 17 that number 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 adjusted under 19 (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH]; 20 (C) [(iii)] for the fourth fiscal year after the base fiscal year, the 21 district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 22 (C)] of this subsection [PARAGRAPH] is calculated by dividing the sum of 23 the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 24 (C)] of this subsection [PARAGRAPH] for the base fiscal year by the sum of 25 the district's ADM of the consolidated schools for the base fiscal year without 26 adjustment, and subtracting the quotient obtained by dividing the sum of the 27 district's ADM of the consolidated schools for the current fiscal year as 28 adjusted under (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH] by the 29 sum of the district's ADM of the consolidated schools for the current fiscal 30 year, multiplying that number by the sum of the district's ADM of the 31 consolidated schools for the current fiscal year without adjustment, multiplying
01 that number by 33 percent, and adding that number to the sum of the district's 02 ADM of the consolidated schools for the current fiscal year as adjusted under 03 (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH]; 04 (D) [(iv)] to calculate the district's basic need for each fiscal 05 year, the number obtained through the calculation in (A), (B), or (C) [(i), (ii), 06 OR (iii)] of this paragraph [SUBPARAGRAPH] is added to the number 07 obtained under (3) [(C)] of this subsection [PARAGRAPH] for the remainder 08 of the district; 09 (9) [(I)] if the basic need calculated under (8)(A) - (C) [(H)(i) - (iii)] of 10 this subsection [PARAGRAPH] for one of the first four fiscal years after 11 consolidation is less than the basic need calculated under (1) - (3) [(A) - (C)] of this 12 subsection [PARAGRAPH] for that fiscal year, the basic need may not be adjusted 13 under (8) [(H)] of this subsection [PARAGRAPH] for that fiscal year; 14 (10) [(J)] a district may not offset a decrease under (8) [(H)] of this 15 subsection [PARAGRAPH] if 16 (A) [(i)] a new facility is constructed in the district for the 17 consolidation; or 18 (B) [(ii)] the district offset a decrease under (5) [(E)] of this 19 subsection [PARAGRAPH] in the same fiscal year; 20 (11) [(K)] a district that offsets a decrease under (8) [(H)] of this 21 subsection [PARAGRAPH] may not reopen a school that was closed for 22 consolidation in the district until 23 (A) [(i)] seven or more years have passed since the school 24 closure; and 25 (B) [(ii)] the district provides evidence satisfactory to the 26 department that the schools affected by the consolidation are over capacity; 27 (12) [(L)] a district may not reopen and reconsolidate a school that was 28 consolidated in the district more than once every seven years for purposes of the 29 calculations made under (8) [(H)] of this subsection [PARAGRAPH]; 30 (13) [(M)] a district offsetting a decrease under (8) [(H)] of this 31 subsection [PARAGRAPH] shall provide the department with the list of schools
01 participating in the consolidation and the corresponding ADM [; 02 (2) THE REQUIRED LOCAL CONTRIBUTION OF A CITY OR 03 BOROUGH SCHOOL DISTRICT IS THE EQUIVALENT OF A 2.65 MILL TAX 04 LEVY ON THE FULL AND TRUE VALUE OF THE TAXABLE REAL AND 05 PERSONAL PROPERTY IN THE DISTRICT AS OF JANUARY 1 OF THE 06 SECOND PRECEDING FISCAL YEAR, AS DETERMINED BY THE 07 DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC 08 DEVELOPMENT UNDER AS 14.17.510 AND AS 29.45.110, NOT TO EXCEED 45 09 PERCENT OF A DISTRICT'S BASIC NEED FOR THE PRECEDING FISCAL 10 YEAR AS DETERMINED UNDER (1) OF THIS SUBSECTION]. 11 * Sec. 4. AS 14.17.410(c) is amended to read: 12 (c) A [IN ADDITION TO THE LOCAL CONTRIBUTION REQUIRED 13 UNDER (b)(2) OF THIS SECTION, A] city or borough school district in a fiscal year 14 may make a local contribution of not more than the greater of 15 (1) the equivalent of a two mill tax levy on the full and true value of 16 the taxable real and personal property in the district as of January 1 of the second 17 preceding fiscal year, as determined by the Department of Commerce, Community, 18 and Economic Development under AS 14.17.510 and AS 29.45.110; or 19 (2) 23 percent of the total of the district's basic need for the fiscal year 20 under (b) [(b)(1)] of this section and any additional funding distributed to the district 21 in a fiscal year according to (b) of this section. 22 * Sec. 5. AS 14.17.420(a) is amended to read: 23 (a) As a component of public school funding, a district is eligible for special 24 needs and secondary school vocational and technical instruction funding and may be 25 eligible for intensive services funding as follows: 26 (1) special needs funding is available to a district to assist the district 27 in providing special education, gifted and talented education, vocational education, 28 and bilingual education services to its students; a special needs funding factor of 1.20 29 shall be applied as set out in AS 14.17.410(b) [AS 14.17.410(b)(1)]; 30 (2) in addition to the special needs funding for which a district is 31 eligible under (1) of this subsection, a district is eligible for intensive services funding
01 for each special education student who needs and receives intensive services and is 02 enrolled on the last day of the count period; for each such student, intensive services 03 funding is equal to the intensive student count multiplied by 13; 04 (3) in addition to the special needs and intensive services funding 05 available under (1) and (2) of this subsection, secondary school vocational and 06 technical instruction funding is available to assist districts in providing vocational and 07 technical instruction to students who are enrolled in a secondary school; a secondary 08 school vocational and technical instruction funding factor of 1.015 shall be applied as 09 set out in AS 14.17.410(b) [AS 14.17.410(b)(1)]; in this paragraph, "vocational and 10 technical instruction" excludes costs associated with 11 (A) administrative expenses; and 12 (B) instruction in general literacy, mathematics, and job 13 readiness skills. 14 * Sec. 6. AS 14.17.460(a) is amended to read: 15 (a) For purposes of calculating a district's adjusted ADM under 16 AS 14.17.410(b) [AS 14.17.410(b)(1)], the district cost factor for a school district is 17 (1) for the fiscal year ending June 30, 2009, the factor set out under column (A) of this 18 subsection, (2) for the fiscal year ending June 30, 2010, the factor set out under 19 column (B) of this subsection, (3) for the fiscal year ending June 30, 2011, the factor 20 set out under column (C) of this subsection, (4) for the fiscal year ending June 30, 21 2012, the factor set out under column (D) of this subsection, and (5) for fiscal years 22 ending on or after June 30, 2013, the factor set out under column (E) of this 23 subsection: 24 DISTRICT COST FACTOR 25 DISTRICT (A) (B) (C) (D) (E) 26 Alaska Gateway 1.443 1.481 1.519 1.557 1.594 27 Aleutians East 1.707 1.778 1.849 1.920 1.991 28 Aleutians Region 1.838 1.864 1.890 1.916 1.939 29 Anchorage 1.000 1.000 1.000 1.000 1.000 30 Annette Island 1.175 1.216 1.257 1.298 1.338 31 Bering Strait 1.762 1.821 1.880 1.939 1.998
01 Bristol Bay 1.370 1.397 1.424 1.451 1.478 02 Chatham 1.348 1.405 1.462 1.519 1.576 03 Chugach 1.395 1.420 1.445 1.470 1.496 04 Copper River 1.246 1.264 1.282 1.300 1.316 05 Cordova 1.165 1.182 1.199 1.216 1.234 06 Craig 1.108 1.133 1.158 1.183 1.206 07 Delta/Greely 1.174 1.191 1.208 1.225 1.241 08 Denali 1.323 1.326 1.329 1.332 1.332 09 Dillingham 1.300 1.312 1.324 1.336 1.346 10 Fairbanks 1.055 1.059 1.063 1.067 1.070 11 Galena 1.370 1.376 1.382 1.388 1.391 12 Haines 1.104 1.128 1.152 1.176 1.200 13 Hoonah 1.227 1.270 1.313 1.356 1.399 14 Hydaburg 1.295 1.348 1.401 1.454 1.504 15 Iditarod 1.658 1.705 1.752 1.799 1.846 16 Juneau 1.075 1.093 1.111 1.129 1.145 17 Kake 1.242 1.296 1.350 1.404 1.459 18 Kashunamiut 1.504 1.533 1.562 1.591 1.619 19 Kenai Peninsula 1.088 1.109 1.130 1.151 1.171 20 Ketchikan 1.085 1.106 1.127 1.148 1.170 21 Klawock 1.160 1.196 1.232 1.268 1.302 22 Kodiak Island 1.191 1.216 1.241 1.266 1.289 23 Kuspuk 1.584 1.622 1.660 1.698 1.734 24 Lake and Peninsula 1.776 1.831 1.886 1.941 1.994 25 Lower Kuskokwim 1.577 1.599 1.621 1.643 1.663 26 Lower Yukon 1.650 1.703 1.756 1.809 1.861 27 Matanuska-Susitna 1.040 1.048 1.056 1.064 1.070 28 Mt. Edgecumbe 1.098 1.123 1.148 1.173 1.195 29 Nenana 1.304 1.313 1.322 1.331 1.338 30 Nome 1.385 1.402 1.419 1.436 1.450 31 North Slope 1.648 1.684 1.720 1.756 1.791
01 Northwest Arctic 1.686 1.720 1.754 1.788 1.823 02 Pelican 1.384 1.408 1.432 1.456 1.477 03 Petersburg 1.122 1.153 1.184 1.215 1.244 04 Pribilof 1.555 1.589 1.623 1.657 1.691 05 Sitka 1.098 1.123 1.148 1.173 1.195 06 Skagway 1.159 1.163 1.167 1.171 1.174 07 Southeast Island 1.264 1.299 1.334 1.369 1.403 08 Southwest Region 1.554 1.587 1.620 1.653 1.685 09 St. Mary's 1.488 1.522 1.556 1.590 1.624 10 Tanana 1.641 1.677 1.713 1.749 1.786 11 Unalaska 1.343 1.368 1.393 1.418 1.441 12 Valdez 1.133 1.143 1.153 1.163 1.170 13 Wrangell 1.080 1.100 1.120 1.140 1.159 14 Yakutat 1.229 1.275 1.321 1.367 1.412 15 Yukon Flats 1.892 1.948 2.004 2.060 2.116 16 Yukon/Koyukuk 1.669 1.711 1.753 1.795 1.835 17 Yupiit 1.596 1.628 1.660 1.692 1.723. 18 * Sec. 7. AS 14.17.510(a) is amended to read: 19 (a) To [DETERMINE THE AMOUNT OF REQUIRED LOCAL 20 CONTRIBUTION UNDER AS 14.17.410(b)(2) AND TO] aid the department and the 21 legislature in planning, the Department of Commerce, Community, and Economic 22 Development, in consultation with the assessor for each district in a city or borough, 23 shall determine the full and true value of the taxable real and personal property in each 24 district in a city or borough. If there is no local assessor or current local assessment for 25 a city or borough school district, then the Department of Commerce, Community, and 26 Economic Development shall make the determination of full and true value guided by 27 AS 29.45.110 and based on a determination of full and true value made by the state 28 assessor at least every two years using the best information available, including on-site 29 inspections made by the state assessor in each of those districts at least once every four 30 years. For purposes of this subsection, the full and true value of taxable real and 31 personal property in any area detached shall be excluded from the determination of the
01 full and true value of the municipality from which the property was detached for the 02 two years immediately preceding the effective date of the detachment. Also, in making 03 the determination for a municipality that is a school district, or for a city that is within 04 a borough school district, the assessed value of property taxable under AS 43.56 shall 05 be excluded if a tax is not levied under AS 29.45.080 by the municipality that is the 06 school district. The determination of full and true value shall be made by October 1 07 and sent by certified mail, return receipt requested, on or before that date to the 08 president of the school board in each city or borough school district. Duplicate copies 09 shall be sent to the commissioner. The governing body of a city or borough that is a 10 school district may obtain judicial review of the determination. The superior court may 11 modify the determination of the Department of Commerce, Community, and 12 Economic Development only upon a finding of abuse of discretion or upon a finding 13 that there is no substantial evidence to support the determination. 14 * Sec. 8. AS 14.17.990(3) is amended to read: 15 (3) "district adjusted ADM" means the number resulting from the 16 calculations under AS 14.17.410(b) [AS 14.17.410(b)(1)]; 17 * Sec. 9. AS 14.20.177(a) is amended to read: 18 (a) A school district may implement a layoff plan under this section if it is 19 necessary for the district to reduce the number of tenured teachers because 20 (1) school attendance in the district has decreased; or 21 (2) the basic need of the school district determined under 22 AS 14.17.410(b) [AS 14.17.410(b)(1)] decreases by three percent or more from the 23 previous year. 24 * Sec. 10. AS 29.45.050(m) is amended to read: 25 (m) A municipality may by ordinance partially or totally exempt all or some 26 types of economic development property from taxation for a designated period. 27 [EXCEPT AS OTHERWISE PROVIDED BY AN ORDINANCE ENACTED BY 28 THE MUNICIPALITY BEFORE JANUARY 1, 2017, A MUNICIPALITY THAT IS 29 A SCHOOL DISTRICT MAY ONLY EXEMPT ALL OR A PORTION OF THE 30 AMOUNT OF TAXES THAT EXCEEDS THE AMOUNT LEVIED ON OTHER 31 PROPERTY FOR THE SCHOOL DISTRICT'S REQUIRED LOCAL
01 CONTRIBUTION UNDER AS 14.17.410(b)(2).] A municipality may by ordinance 02 permit deferral of payment of taxes on all or some types of economic development 03 property for a designated period. A municipality may apply an exemption or deferral 04 under this subsection to taxes levied for special services in a service area that is 05 supervised by an elected service area board under AS 29.35.460 unless the elected 06 service area board objects to the exemption or deferral by resolution adopted not later 07 than 60 days after the effective date of the municipal ordinance enacting the tax 08 exemption or deferral. A municipality may adopt an ordinance under this subsection 09 only if, before it is adopted, copies of the proposed ordinance made available at a 10 public hearing on it contain written notice that the ordinance, if adopted, may be 11 repealed by the voters through referendum. An ordinance adopted under this 12 subsection must include specific eligibility requirements and require a written 13 application for each exemption or deferral. 14 * Sec. 11. AS 43.23.220(d) is amended to read: 15 (d) On July 1 of each year, the commissioner shall 16 (1) determine the fund balance for the previously closed fiscal year, 17 including the earnings of the fund; and 18 (2) when the average market value for that fiscal year exceeds 19 $1,000,000,000, transfer 4.5 percent of the average fiscal-year-end market value of the 20 balance of the fund for the last five fiscal years, including the fiscal year just ended, 21 and including any unrealized gains and losses, to the Department of Education and 22 Early Development for distribution as supplemental grants to school districts 23 according to the average daily membership for each district adjusted under 24 AS 14.17.410(b)(1) - (4) [AS 14.17.410(b)(1)(A) - (D)], subject to appropriation. 25 * Sec. 12. AS 43.23.230(c) is amended to read: 26 (c) Of the donations received in a year under (b) of this section, the legislature 27 shall appropriate 25 percent to the education endowment fund established in 28 AS 43.23.220 and shall appropriate 25 percent to the dividend raffle fund. The 29 legislature shall appropriate the remaining 50 percent of the donations received under 30 (b) of this section to the Department of Education and Early Development for 31 distribution as supplemental grants to school districts according to the average daily
01 membership for each district adjusted under AS 14.17.410(b)(1) - (4) 02 [AS 14.17.410(b)(1)(A) - (D)]. 03 * Sec. 13. AS 14.17.410(d), 14.17.410(e), and 14.17.410(f) are repealed. 04 * Sec. 14. This Act takes effect July 1, 2024.