00 HOUSE BILL NO. 350 01 "An Act relating to the local contribution to public school funding; and providing for an 02 effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 14.17.410(b) is amended to read: 05 (b) Public school funding consists of state aid, a required local contribution, 06 and eligible federal impact aid determined as follows: 07 (1) state aid equals basic need minus a required local contribution and 08 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 09 obtained under (D) of this paragraph, multiplied by the base student allocation set out 10 in AS 14.17.470; district adjusted ADM is calculated as follows: 11 (A) the ADM of each school in the district is calculated by 12 applying the school size factor to the student count as set out in AS 14.17.450; 13 (B) the number obtained under (A) of this paragraph is 14 multiplied by the district cost factor described in AS 14.17.460; 01 (C) the ADMs of each school in a district, as adjusted 02 according to (A) and (B) of this paragraph, are added; the sum is then 03 multiplied by the special needs factor set out in AS 14.17.420(a)(1); 04 (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 (C) of this paragraph; 07 (E) notwithstanding (A) - (C) of this paragraph, if a school 08 district's ADM adjusted for school size under (A) of this paragraph decreases 09 by five percent or more from one fiscal year to the next fiscal year, the school 10 district may use the last fiscal year before the decrease as a base fiscal year to 11 offset the decrease, according to the following method: 12 (i) for the first fiscal year after the base fiscal year 13 determined under this subparagraph, the school district's ADM adjusted 14 for school size determined under (A) of this paragraph is calculated as 15 the district's ADM adjusted for school size, plus 75 percent of the 16 difference in the district's ADM adjusted for school size between the 17 base fiscal year and the first fiscal year after the base fiscal year; 18 (ii) for the second fiscal year after the base fiscal year 19 determined under this subparagraph, the school district's ADM adjusted 20 for school size determined under (A) of this paragraph is calculated as 21 the district's ADM adjusted for school size, plus 50 percent of the 22 difference in the district's ADM adjusted for school size between the 23 base fiscal year and the second fiscal year after the base fiscal year; 24 (iii) for the third fiscal year after the base fiscal year 25 determined under this subparagraph, the school district's ADM adjusted 26 for school size determined under (A) of this paragraph is calculated as 27 the district's ADM adjusted for school size, plus 25 percent of the 28 difference in the district's ADM adjusted for school size between the 29 base fiscal year and the third fiscal year after the base fiscal year; 30 (F) the method established in (E) of this paragraph is available 31 to a school district for the three fiscal years following the base fiscal year 01 determined under (E) of this paragraph only if the district's ADM adjusted for 02 school size determined under (A) of this paragraph for each fiscal year is less 03 than the district's ADM adjusted for school size in the base fiscal year; 04 (G) the method established in (E) of this paragraph does not 05 apply to a decrease in the district's ADM adjusted for school size resulting 06 from a loss of enrollment that occurs as a result of a boundary change under 07 AS 29; 08 (2) the required local contribution of a city or borough school district is 09 the equivalent of a 2.7 [FOUR] mill tax levy on the full and true value of the taxable 10 real and personal property in the district as of January 1 of the second preceding fiscal 11 year, as determined by the Department of Commerce, Community, and Economic 12 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 13 district's basic need for the preceding fiscal year as determined under (1) of this 14 subsection. 15  * Sec. 2. AS 14.17.410(e) is amended to read: 16 (e) If a city or borough school district is established after July 1, 1998, for the 17 first three fiscal years in which the city or borough school district operates schools, 18 local contributions may be less than the amount that would otherwise be required 19 under (b)(2) of this section, except that 20 (1) in the second fiscal year of operations, local contributions must be 21 at least the greater of 22 (A) the local contributions, excluding federal impact aid, for 23 the previous fiscal year; or 24 (B) the sum of 10 percent of the district's eligible federal 25 impact aid for that year and the equivalent of a 1.35 [TWO] mill tax levy on 26 the full and true value of the taxable real and personal property in the city or 27 borough school district as of January 1 of the second preceding fiscal year, as 28 determined by the Department of Commerce, Community, and Economic 29 Development under AS 14.17.510 and AS 29.45.110; and 30 (2) in the third year of operation, local contributions must be at least 31 the greater of 01 (A) the local contributions, excluding federal impact aid, for 02 the previous fiscal year; or 03 (B) the sum of 10 percent of the district's eligible federal 04 impact aid for that year and the equivalent of a two [THREE] mill tax levy on 05 the full and true value of the taxable real and personal property in the district as 06 of January 1 of the second preceding fiscal year, as determined by the 07 Department of Commerce, Community, and Economic Development under 08 AS 14.17.510 and AS 29.45.110. 09  * Sec. 3. AS 14.17.490(b) is amended to read: 10 (b) A city or borough school district is not eligible for additional funding 11 authorized under (a) of this section unless, during the fiscal year in which the district 12 receives funding under (a) of this section, the district received a local contribution 13 equal to at least the equivalent of a four mill tax levy in fiscal years 2000 through  14 2010 and a 2.7 mill tax levy each year after fiscal year 2010 on the full and true 15 value of the taxable real and personal property in the district as of January 1 of the 16 second preceding fiscal year as determined by the Department of Commerce, 17 Community, and Economic Development under AS 14.17.510 and AS 29.45.110. 18  * Sec. 4. AS 14.17.510(c) is amended to read: 19 (c) Notwithstanding AS 14.17.410(b)(2) and the other provisions of this 20 section, if the assessed value in a city or borough school district determined under (a) 21 of this section increases from the preceding fiscal [BASE] year, only 50 percent of 22 the annual increase in assessed value may be included in determining the assessed 23 value in a city or borough school district under (a) of this section. The limitation on 24 the increase in assessed value in this subsection applies only to a determination of 25 assessed value for purposes of calculating the required contribution of a city or 26 borough school district under AS 14.17.410(b)(2) and 14.17.490(b). [IN THIS 27 SUBSECTION, THE BASE YEAR IS 1999.] 28  * Sec. 5. This Act takes effect July 1, 2010.