00 HOUSE BILL NO. 452 01 "An Act relating to state foundation aid and supplementary state aid for 02 education; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.17.021 is repealed and reenacted to read: 05  Sec. 14.17.021. STATE FOUNDATION AID. (a) The amount of state 06 foundation aid for which a city or borough school district may qualify in a fiscal year 07 is calculated by subtracting from the basic need defined in (c) of this section the 08 required local contributions under AS 14.17.025(a) and 90 percent of eligible federal 09 impact aid for that fiscal year. 10  (b) The amount of state foundation aid for which a regional educational 11 attendance area may qualify in a fiscal year is calculated by subtracting from the basic 12 need defined in (c) of this section 95 percent of eligible federal impact aid for that 13 fiscal year. 14 (c) The basic need of a school district is determined by multiplying the area cost differential of the district und 01 AS 14.17.051 by the number of instructional units 02 in the district under AS 14.17.031 and then multiplying that product by the 03 instructional unit value in AS 14.17.056. 04  (d) The department may make adjustments to a district's state foundation aid 05 for a fiscal year to correct underpayments made in previous fiscal years. 06 * Sec. 2. AS 14.17 is amended by adding a new section to read: 07  Sec. 14.17.026. SUPPLEMENTARY STATE AID FOR REGIONAL 08 EDUCATIONAL ATTENDANCE AREAS. (a) In addition to the state foundation 09 aid for which a regional educational attendance area may qualify under AS 10 14.17.021(b), a regional educational attendance area may qualify for supplementary 11 state aid. The amount of supplementary state aid for which a regional educational 12 attendance area may qualify in a fiscal year is calculated by multiplying the area cost 13 differential of the regional educational attendance area under AS 14.17.051 by the 14 number of instructional units in the regional educational attendance area determined 15 under AS 14.17.031 and then multiplying that product by a unit allotment of $500. 16  (b) The department may, by regulation, increase the unit allotment specified 17 in (a) of this section if necessary to keep revenue disparities among school districts in 18 the state in compliance with federal equalization requirements. 19 * Sec. 3. AS 14.17.031(a) is amended to read: 20  (a) The department shall adopt regulations defining funding communities 21 within each district that reflect geographic and attendance area factors. For the 22 purpose of determining instructional units, students are counted in the district and the 23 funding community from which they receive educational services. The total number 24 of instructional units in a school district is the sum of the following units for each 25 funding community within the district, as determined by the department: 26  (1) the number of units for elementary and secondary students 27 determined under AS 14.17.041 [AS 14.17.041(a) OR (b)]; 28  (2) the number of units for vocational education determined under 29 AS 14.17.043; 30  (3) the number of units for special education determined under 31 AS 14.17.045; and 01  (4) the number of units for bilingual education determined under 02 AS 14.17.047. 03 * Sec. 4. AS 14.17.041 is amended by adding a new subsection to read: 04  (e) For districts that consist of one funding community with an ADM of 900 05 or less, the elementary and secondary instructional units determined under (a) or (b) 06 of this section are increased by multiplying those units by the percentage set out in the 07 following table: 08 ADM Percentage 09 1 - 250 12 10 251 - 525 8 11 526 - 900 6 12 * Sec. 5. This Act takes effect July 1, 1996.