00 CS FOR HOUSE BILL NO. 261(FIN) 01 "An Act relating to education funding; and providing for an effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03  * Section 1. AS 14.03.410(e) is amended to read: 04 (e) A student in an early education program may not be counted in a district's 05 ADM under AS 14.17.600 [AS 14.17.500] unless the department has approved the 06 program. 07  * Sec. 2. AS 14.11.100(o) is amended to read: 08 (o) The total amount of school construction projects approved for 09 reimbursement by the department under (a)(10) of this section 10 (1) may not exceed $190,644,901; and 11 (2) after June 30, 1998, and until July 1, 2006, shall be allocated as 12 follows: 13 (A) $77,897,000 to projects in a municipality with a public 14 school enrollment of 25,000 or more students in fiscal year 2000, as 15 determined under former AS 14.17.500; 01 (B) $14,571,000 to projects in a municipality with a public 02 school enrollment of at least 15,000 but less than 25,000 students in fiscal year 03 2000, as determined under former AS 14.17.500; 04 (C) $14,143,000 to projects in a municipality with a public 05 school enrollment of at least 10,000 but less than 15,000 students in fiscal year 06 2000, as determined under former AS 14.17.500; 07 (D) $7,429,000 to projects in a municipality with a public 08 school enrollment of at least 7,500 but less than 10,000 students in fiscal year 09 2000, as determined under former AS 14.17.500; 10 (E) $20,712,912 to projects in a municipality with a public 11 school enrollment of at least 5,000 but less than 7,500 students in fiscal year 12 2000, as determined under former AS 14.17.500; 13 (F) $2,660,000 to projects in a municipality with a public 14 school enrollment of at least 2,750 but less than 3,000 students in fiscal year 15 2000, as determined under former AS 14.17.500; 16 (G) $454,000 to projects in a municipality with a public school 17 enrollment of at least 2,400 but less than 2,750 students in fiscal year 2000, as 18 determined under former AS 14.17.500; 19 (H) $46,869,989 to projects in a municipality with a public 20 school enrollment of at least 2,050 but less than 2,400 students in fiscal year 21 2000, as determined under former AS 14.17.500; 22 (I) $329,000 to projects in a municipality with a public school 23 enrollment of at least 1,700 but less than 1,750 students in fiscal year 2000, as 24 determined under former AS 14.17.500; 25 (J) $286,000 to projects in a municipality with a public school 26 enrollment of at least 650 but less than 725 students in fiscal year 2000, as 27 determined under former AS 14.17.500; 28 (K) $519,000 to projects in a municipality with a public school 29 enrollment of at least 500 but less than 525 students in fiscal year 2000, as 30 determined under former AS 14.17.500; 31 (L) $2,224,000 to projects in a municipality with a public 01 school enrollment of at least 425 but less than 482 students in fiscal year 2000, 02 as determined under former AS 14.17.500; 03 (M) $2,550,000 to projects in a municipality with a public 04 school enrollment of at least 290 but less than 305 students in fiscal year 2000, 05 as determined under former AS 14.17.500. 06  * Sec. 3. AS 14.11.100(p) is amended to read: 07 (p) The total amount of school construction projects approved for 08 reimbursement by the department under (a)(13) and (a)(14) of this section 09 (1) may not exceed $177,256,000; 10 (2) after June 30, 1999, and until October 31, 2006, shall be allocated 11 as follows: 12 (A) $61,925,000 to projects in a municipality with a public 13 school enrollment of 45,000 or more students in fiscal year 2005, as 14 determined under former AS 14.17.500; 15 (B) $40,570,000 to projects in a municipality with a public 16 school enrollment of at least 14,600 but less than 20,000 students in fiscal year 17 2005, as determined under former AS 14.17.500; 18 (C) $20,000,000 to projects in a municipality with a public 19 school enrollment of at least 10,000 but less than 14,600 students in fiscal year 20 2005, as determined under former AS 14.17.500; 21 (D) $2,588,000 to projects in a municipality with a public 22 school enrollment of at least 7,500 but less than 10,000 students in fiscal year 23 2005, as determined under former AS 14.17.500; 24 (E) $5,995,000 to projects in a municipality with a public 25 school enrollment of at least 4,000 but less than 6,000 students in fiscal year 26 2005, as determined under former AS 14.17.500; 27 (F) $1,237,000 to projects in a municipality with a public 28 school enrollment of at least 2,400 but less than 2,800 students in fiscal year 29 2005, as determined under former AS 14.17.500; 30 (G) $1,100,000 to projects in a municipality with a public 31 school enrollment of at least 2,200 but less than 2,400 students in fiscal year 01 2005, as determined under former AS 14.17.500; 02 (H) $7,164,000 to projects in a municipality with a public 03 school enrollment of at least 1,300 but less than 1,500 students in fiscal year 04 2005, as determined under former AS 14.17.500; 05 (I) $1,260,000 to projects in a municipality with a public 06 school enrollment of at least 740 but less than 757 students in fiscal year 2005, 07 as determined under former AS 14.17.500; 08 (J) $608,000 to projects in a municipality with a public school 09 enrollment of at least 650 but less than 700 students in fiscal year 2005, as 10 determined under former AS 14.17.500; 11 (K) $32,000,000 to projects in a municipality with a public 12 school enrollment of at least 500 but less than 600 students in fiscal year 2005, 13 as determined under former AS 14.17.500; 14 (L) $2,809,000 to projects in a municipality with a public 15 school enrollment of at least 370 but less than 390 students in fiscal year 2005, 16 as determined under former AS 14.17.500. 17  * Sec. 4. AS 14.11.100(q) is amended to read: 18 (q) The total amount of school construction projects approved for 19 reimbursement by the department under (a)(15) of this section 20 (1) may not exceed $14,644,000; 21 (2) after June 30, 1999, and until October 31, 2006, shall be allocated 22 as follows: 23 (A) $6,522,000 to projects in a municipality with a public 24 school enrollment of at least 1,925 but less than 2,025 students in fiscal year 25 2005, as determined under former AS 14.17.500; 26 (B) $8,122,000 to projects in a municipality with a public 27 school enrollment of at least 398 but less than 400 students in fiscal year 2005, 28 as determined under former AS 14.17.500. 29  * Sec. 5. AS 14.16.050(a) is amended to read: 30 (a) The following provisions apply with respect to the operation and 31 management of a state boarding school as if it were a school district: 01 (1) requirements relating to school district operations: 02 (A) AS 14.03.030 - 14.03.050 (defining the school term, day in 03 session, and school holidays); 04 (B) AS 14.03.083 - 14.03.140 (miscellaneous provisions 05 applicable to school district operations); 06 (C) [REPEALED 07 (D)] AS 14.12.150 (authorizing school districts to establish and 08 participate in the services of a regional resource center); 09 (D) [(E)] AS 14.14.050 (imposing the requirement of an annual 10 audit); 11 (E) [(F)] AS 14.14.110 (authorizing cooperation with other 12 school districts); 13 (F) [(G)] AS 14.14.140(b) (establishing a prohibition on 14 employment of a relative of the chief school administrator); 15 (G) [(H)] AS 14.18 (prohibiting discrimination based on sex in 16 public education); 17 (2) requirements relating to the public school funding program and the 18 receipt and expenditure of that funding: 19 (A) [AS 14.17.500 (RELATING TO STUDENT COUNT 20 ESTIMATES); (B)] AS 14.17.505 (relating to school operating fund balances); 21 (B) AS 14.17.505 - 14.17.910 [(C) AS 14.17.500 - 14.17.910] 22 (setting out the procedure for payment of public school funding and imposing 23 general requirements and limits on money paid); 24 (3) requirements relating to teacher employment and retirement: 25 (A) AS 14.14.105 and 14.14.107 (relating to sick leave); 26 (B) AS 14.20.095 - 14.20.215 (relating to the employment and 27 tenure of teachers); 28 (C) AS 14.20.280 - 14.20.350 (relating to sabbatical leave 29 provisions for teachers); 30 (D) AS 23.40.070 - 23.40.260 (authorizing collective 31 bargaining by certificated employees), except with regard to teachers who are 01 administrators and except that the board may delegate some or all of its 02 responsibilities under those statutes; 03 (E) AS 14.25 (provisions regarding the teachers' retirement 04 system); 05 (4) requirements relating to students and educational programs: 06 (A) AS 14.30.180 - 14.30.350 (relating to educational services 07 for children with disabilities); 08 (B) AS 14.30.360 - 14.30.370 (establishing health education 09 program standards); 10 (C) AS 14.30.400 - 14.30.410 (relating to bilingual and 11 bicultural education). 12  * Sec. 6. AS 14.17.410(b) is amended to read: 13 (b) Public school funding consists of state aid, a required local contribution, 14 and eligible federal impact aid determined as follows: 15 (1) state aid equals basic need minus a required local contribution and 16 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 17 obtained under (D) of this paragraph, multiplied by the base student allocation set out 18 in AS 14.17.470; district adjusted ADM is calculated as follows: 19 (A) the ADM of each school in the district is calculated by 20 applying the school size factor to the student count as set out in AS 14.17.450; 21 for purposes of this subparagraph and except as provided in  22 AS 14.17.450(b), calculation of a school's student count under  23 AS 14.17.450 for a fiscal year must be based on the greater of 24 (i) the school's prior three-year average ADM  25 reported in the previous fiscal year under AS 14.17.600;  26 (ii) the school's ADM reported in the previous fiscal  27 year under AS 14.17.600; or  28 (iii) the school's ADM reported in the current fiscal  29 year under AS 14.17.600, but only if the school's ADM reported in  30 the current fiscal year under AS 14.17.600 exceeds the greater of  31 the ADMs described in (1) or (2) of this subsection by five percent  01 or more; 02 (B) the number obtained under (A) of this paragraph is 03 multiplied by the district cost factor described in AS 14.17.460; 04 (C) the ADMs of each school in a district, as adjusted 05 according to (A) and (B) of this paragraph, are added; the sum is then 06 multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 07 secondary school vocational and technical instruction funding factor set out in 08 AS 14.17.420(a)(3); 09 (D) the number obtained for intensive services under 10 AS 14.17.420(a)(2) and the number obtained for correspondence study under 11 AS 14.17.430 are added to the number obtained under (C) of this paragraph or 12 under (E) [(H)] and (F) [(I)] of this paragraph; 13 (E) [NOTWITHSTANDING (A) - (C) OF THIS 14 PARAGRAPH, IF A SCHOOL DISTRICT'S ADM ADJUSTED FOR 15 SCHOOL SIZE UNDER (A) OF THIS PARAGRAPH DECREASES BY 16 FIVE PERCENT OR MORE FROM ONE FISCAL YEAR TO THE NEXT 17 FISCAL YEAR, THE SCHOOL DISTRICT MAY USE THE LAST FISCAL 18 YEAR BEFORE THE DECREASE AS A BASE FISCAL YEAR TO 19 OFFSET THE DECREASE, ACCORDING TO THE FOLLOWING 20 METHOD: 21 (i) FOR THE FIRST FISCAL YEAR AFTER THE 22 BASE FISCAL YEAR DETERMINED UNDER THIS 23 SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 24 FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 25 PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 26 ADJUSTED FOR SCHOOL SIZE, PLUS 75 PERCENT OF THE 27 DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 28 SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 29 FIRST FISCAL YEAR AFTER THE BASE FISCAL YEAR; 30 (ii) FOR THE SECOND FISCAL YEAR AFTER THE 31 BASE FISCAL YEAR DETERMINED UNDER THIS 01 SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 02 FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 03 PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 04 ADJUSTED FOR SCHOOL SIZE, PLUS 50 PERCENT OF THE 05 DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 06 SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 07 SECOND FISCAL YEAR AFTER THE BASE FISCAL YEAR; 08 (iii) FOR THE THIRD FISCAL YEAR AFTER THE 09 BASE FISCAL YEAR DETERMINED UNDER THIS 10 SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 11 FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 12 PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 13 ADJUSTED FOR SCHOOL SIZE, PLUS 25 PERCENT OF THE 14 DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 15 SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 16 THIRD FISCAL YEAR AFTER THE BASE FISCAL YEAR; 17 (F) THE METHOD ESTABLISHED IN (E) OF THIS 18 PARAGRAPH IS AVAILABLE TO A SCHOOL DISTRICT FOR THE 19 THREE FISCAL YEARS FOLLOWING THE BASE FISCAL YEAR 20 DETERMINED UNDER (E) OF THIS PARAGRAPH ONLY IF THE 21 DISTRICT'S ADM ADJUSTED FOR SCHOOL SIZE DETERMINED 22 UNDER (A) OF THIS PARAGRAPH FOR EACH FISCAL YEAR IS LESS 23 THAN THE DISTRICT'S ADM ADJUSTED FOR SCHOOL SIZE IN THE 24 BASE FISCAL YEAR; 25 (G) THE METHOD ESTABLISHED IN (E) OF THIS 26 PARAGRAPH DOES NOT APPLY TO A DECREASE IN THE DISTRICT'S 27 ADM ADJUSTED FOR SCHOOL SIZE RESULTING FROM A LOSS OF 28 ENROLLMENT THAT OCCURS AS A RESULT OF A BOUNDARY 29 CHANGE UNDER AS 29; 30 (H)] notwithstanding (A) - (C) of this paragraph, if one or more 31 schools close and consolidate with one or more other schools in the same 01 community and district and, as a result of the consolidation, basic need 02 generated by the district's ADM of the consolidated schools as adjusted under 03 (A) - (C) of this paragraph decreases, the district may use the last fiscal year 04 before the consolidation as the base fiscal year to offset that decrease for the 05 first four fiscal years following consolidation according to the following 06 method: 07 (i) for the first two fiscal years after the base fiscal year, 08 the district's ADM of the consolidated schools as adjusted under (A) - 09 (C) of this paragraph is calculated by dividing the sum of the district's 10 ADM of the consolidated schools as adjusted under (A) - (C) of this 11 paragraph for the base fiscal year by the sum of the district's ADM of 12 the consolidated schools for the base fiscal year without adjustment, 13 and subtracting the quotient obtained by dividing the district's ADM of 14 the consolidated schools for the current fiscal year as adjusted under 15 (A) - (C) of this paragraph by the sum of the district's ADM of the 16 consolidated schools for the current fiscal year without adjustment, 17 multiplying that number by the sum of the district's ADM of the 18 consolidated schools for the current fiscal year without adjustment, and 19 adding that number to the sum of the district's ADM of the consolidated 20 schools for the current fiscal year as adjusted under (A) - (C) of this 21 paragraph; 22 (ii) for the third fiscal year after the base fiscal year, the 23 district's ADM of the consolidated schools as adjusted under (A) - (C) 24 of this paragraph is calculated by dividing the sum of the district's 25 ADM of the consolidated schools as adjusted under (A) - (C) of this 26 paragraph for the base fiscal year by the sum of the district's ADM of 27 the consolidated schools for the base fiscal year without adjustment, 28 and subtracting the quotient obtained by dividing the sum of the 29 district's ADM of the consolidated schools for the current fiscal year as 30 adjusted under (A) - (C) of this paragraph by the sum of the district's 31 ADM of the consolidated schools for the current fiscal year, 01 multiplying that number by the sum of the district's ADM of the 02 consolidated schools for the current fiscal year without adjustment, 03 multiplying that number by 66 percent, and adding that number to the 04 sum of the district's ADM of the consolidated schools for the current 05 fiscal year as adjusted under (A) - (C) of this paragraph; 06 (iii) for the fourth fiscal year after the base fiscal year, 07 the district's ADM of the consolidated schools as adjusted under (A) - 08 (C) of this paragraph is calculated by dividing the sum of the district's 09 ADM of the consolidated schools as adjusted under (A) - (C) of this 10 paragraph for the base fiscal year by the sum of the district's ADM of 11 the consolidated schools for the base fiscal year without adjustment, 12 and subtracting the quotient obtained by dividing the sum of the 13 district's ADM of the consolidated schools for the current fiscal year as 14 adjusted under (A) - (C) of this paragraph by the sum of the district's 15 ADM of the consolidated schools for the current fiscal year, 16 multiplying that number by the sum of the district's ADM of the 17 consolidated schools for the current fiscal year without adjustment, 18 multiplying that number by 33 percent, and adding that number to the 19 sum of the district's ADM of the consolidated schools for the current 20 fiscal year as adjusted under (A) - (C) of this paragraph; 21 (iv) to calculate the district's basic need for each fiscal 22 year, the number obtained through the calculation in (i), (ii), or (iii) of 23 this subparagraph is added to the number obtained under (C) of this 24 paragraph for the remainder of the district; 25 (F) [(I)] if the basic need calculated under (E)(i) - (iii) [(H)(i) - 26 (iii)] of this paragraph for one of the first four fiscal years after consolidation is 27 less than the basic need calculated under (A) - (C) of this paragraph for that 28 fiscal year, the basic need may not be adjusted under (E) [(H)] of this 29 paragraph for that fiscal year; 30 (G) [(J)] a district may not offset a decrease under (E) [(H)] of 31 this paragraph if 01 [(i)] a new facility is constructed in the district for the 02 consolidation; 03 (H) [OR 04 (ii) THE DISTRICT OFFSET A DECREASE UNDER 05 (E) OF THIS PARAGRAPH IN THE SAME FISCAL YEAR; 06 (K)] a district that offsets a decrease under (E) [(H)] of this 07 paragraph may not reopen a school that was closed for consolidation in the 08 district until 09 (i) seven or more years have passed since the school 10 closure; and 11 (ii) the district provides evidence satisfactory to the 12 department that the schools affected by the consolidation are over 13 capacity; 14 (I) [(L)] a district may not reopen and reconsolidate a school 15 that was consolidated in the district more than once every seven years for 16 purposes of the calculations made under (E) [(H)] of this paragraph; 17 (J) [(M)] a district offsetting a decrease under (E) [(H)] of this 18 paragraph shall provide the department with the list of schools participating in 19 the consolidation and the corresponding ADM; 20 (2) the required local contribution of a city or borough school district is 21 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 22 personal property in the district as of January 1 of the second preceding fiscal year, as 23 determined by the Department of Commerce, Community, and Economic 24 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 25 district's basic need for the preceding fiscal year as determined under (1) of this 26 subsection. 27  * Sec. 7. AS 14.17.420(a) is amended to read: 28 (a) As a component of public school funding, a district is eligible for special 29 needs and secondary school vocational and technical instruction funding and may be 30 eligible for intensive services funding as follows: 31 (1) special needs funding is available to a district to assist the district 01 in providing special education, gifted and talented education, vocational education, 02 and bilingual education services to its students; a special needs funding factor of 1.20 03 shall be applied as set out in AS 14.17.410(b)(1); 04 (2) in addition to the special needs funding for which a district is 05 eligible under (1) of this subsection, a district is eligible for intensive services funding 06 [FOR EACH SPECIAL EDUCATION STUDENT WHO NEEDS AND RECEIVES 07 INTENSIVE SERVICES AND IS ENROLLED ON THE LAST DAY OF THE 08 COUNT PERIOD; FOR EACH SUCH STUDENT, INTENSIVE SERVICES 09 FUNDING IS] equal to the intensive student count multiplied by 13; the intensive  10 student count equals the greater of the following:  11 (A) the number of special education students who needed  12 and received intensive services and were enrolled on the last day of the  13 count period conducted in the previous fiscal year under AS 14.17.600(a);  14 (B) the number of special education students who needed  15 and received intensive services and were enrolled on the last day of the  16 count period conducted in the current fiscal year under AS 14.17.600(a);  17 (C) the number of special education students who needed  18 and received intensive services and were enrolled on February 15 of the  19 current fiscal year, if a district chooses to conduct a second student count  20 for the current fiscal year under this subparagraph; 21 (3) in addition to the special needs and intensive services funding 22 available under (1) and (2) of this subsection, secondary school vocational and 23 technical instruction funding is available to assist districts in providing vocational and 24 technical instruction to students who are enrolled in a secondary school; a secondary 25 school vocational and technical instruction funding factor of 1.015 shall be applied as 26 set out in AS 14.17.410(b)(1); in this paragraph, "vocational and technical instruction" 27 excludes costs associated with 28 (A) administrative expenses; and 29 (B) instruction in general literacy, mathematics, and job 30 readiness skills. 31  * Sec. 8. AS 14.17.600(a) is amended to read: 01 (a) Within two weeks after the end of the 20-school-day period ending the 02 fourth Friday in October, each district shall transmit a report to the department that, 03 under regulations adopted by the department, reports the district's [ITS] ADM for 04 that count period, the prior three-year average ADM for each school in the  05 district, student count information the department determines is necessary to  06 calculate school ADMs under AS 14.17.450 and community and charter school  07 ADMs that relate to the district under AS 14.17.905, and other student count 08 information that [WILL AID] the department shall use to determine the amount of  09 the district's [IN MAKING A DETERMINATION OF ITS] state aid under the public 10 school funding program for the succeeding fiscal year. The district shall also  11 include in the district's report the number of special education students who  12 needed and received intensive services and are enrolled on the last day of the  13 count period, which the department shall use to determine the amount of the  14 district's intensive services funding under AS 14.17.420(a)(2)(A) for the  15 succeeding fiscal year and, if applicable, additional intensive services funding  16 under AS 14.17.420(a)(2)(B) for the current fiscal year. For centralized 17 correspondence study, the October report shall be based on the period from July 1 18 through the fourth Friday in October. The department may make necessary corrections 19 in the report submitted and shall notify the district of changes made. The 20 commissioner shall notify the governor of additional appropriations the commissioner 21 estimates to be necessary to fully finance the public school funding program for the 22 succeeding [CURRENT] fiscal year. 23  * Sec. 9. AS 14.17.600 is amended by adding new subsections to read: 24 (c) Part-time students shall be included in the student count data in accordance 25 with regulations adopted by the department. 26 (d) When reporting a district's ADM, a part-time student who is a 27 correspondence student may not be counted as more than one full-time equivalent 28 student. 29 (e) Except as provided in (f) - (h) of this section, a student in a district-wide 30 early education program provided by a district and approved by the department under 31 AS 14.07.020(a)(8) is counted as one-half of a full-time equivalent student. 01 (f) A district may not include in a school's ADM students who are four and 02 five years of age if the students are enrolled in an early education program that 03 receives state or federal funding other than funding under this chapter. 04 (g) A district may not include in a school's ADM students who are four and 05 five years of age if inclusion of the students would result in an increase of total state 06 aid attributable to district-wide early education programs approved under 07 AS 14.03.410 of more than $3,000,000 from the previous fiscal year. The department 08 shall prioritize the funding of district-wide early education programs, giving priority to 09 districts with lower performance, based on the department's ranking of districts under 10 AS 14.03.410(c). When the number of students in a district-wide early education 11 program will result in an increase of total state aid attributable to district-wide early 12 education programs approved under AS 14.03.410 of more than $3,000,000 from the 13 previous fiscal year, the department may identify the amount, up to $3,000,000, 14 available for the district's district-wide early education program. 15 (h) For purposes of AS 14.09.010, a student in a district-wide early education 16 program provided by a district and approved by the department under 17 AS 14.07.020(a)(8) is counted as a full-time equivalent student. 18  * Sec. 10. AS 14.17.600(e), enacted by sec. 9 of this Act, is amended to read: 19 (e) A district may not include in the district's ADM [EXCEPT AS 20 PROVIDED IN (f) - (h) OF THIS SECTION,] a student in a district-wide early 21 education program provided by the [A] district [AND APPROVED BY THE 22 DEPARTMENT UNDER AS 14.07.020(a)(8) IS COUNTED AS ONE-HALF OF A 23 FULL-TIME EQUIVALENT STUDENT]. 24  * Sec. 11. AS 14.17.610(a) is amended to read: 25 (a) Except as provided in (d) of this section, the [THE] department shall 26 determine the state aid for each school district for [IN] a fiscal year on the basis of the 27 district's student count data reported in the previous fiscal year under AS 14.17.600. 28 On or before the 15th day of each month [OF THE FIRST NINE MONTHS] of each 29 fiscal year, one-twelfth of each district's state aid shall be distributed on the basis of 30 the data reported under AS 14.17.600 [FOR THE PRECEDING FISCAL YEAR. ON 31 OR BEFORE THE 15TH DAY OF EACH OF THE LAST THREE MONTHS OF 01 EACH FISCAL YEAR, ONE-THIRD OF THE BALANCE OF EACH DISTRICT'S 02 STATE AID SHALL BE DISTRIBUTED, AFTER THE BALANCE HAS BEEN 03 RECOMPUTED ON THE BASIS OF STUDENT COUNT AND OTHER DATA 04 REPORTED FOR THE CURRENT FISCAL YEAR]. 05  * Sec. 12. AS 14.17.610 is amended by adding new subsections to read: 06 (d) If a district is entitled to additional funding under AS 14.17.420(a)(2)(B) 07 or (C) or 14.17.410(b)(1)(A)(iii), the department shall 08 (1) distribute to the district the additional funding necessary to fully 09 fund the previous months of the fiscal year on the basis of the new student count on or 10 before the 15th day of the month following the student count; 11 (2) distribute the district's state aid for the remaining months of the 12 fiscal year on the basis of the new student count. 13 (e) The department may not reduce the amount of a district's state aid for a 14 fiscal year on the basis that the department distributed additional funding to another 15 district for the fiscal year under (d) of this section. 16  * Sec. 13. AS 14.17.905(a) is amended to read: 17 (a) For purposes of this chapter, the determination of the number of schools in 18 a district is subject to the following: 19 (1) a community with an ADM of at least 10, but not more than 100, 20 shall be counted as one school; 21 (2) a community with an ADM of at least 101, but not more than 425, 22 shall be counted as 23 (A) one elementary school, which includes those students in 24 grades kindergarten through six and, except as provided in AS 14.17.600 25 [AS 14.17.500], in an early education program provided by a school district 26 and approved by the department under AS 14.07.020(a)(8); and 27 (B) one secondary school, which includes students in grades 28 seven through 12; 29 (3) in a community with an ADM of greater than 425, each facility that 30 is administered as a separate school shall be counted as one school [, EXCEPT THAT 31 EACH ALTERNATIVE SCHOOL WITH AN ADM OF LESS THAN 175 SHALL 01 BE COUNTED AS A PART OF THE SCHOOL IN THE DISTRICT WITH THE 02 HIGHEST ADM]. 03  * Sec. 14. AS 14.17.905 is amended by adding a new subsection to read: 04 (d) For purposes of determining a community's ADM for a fiscal year under 05 (a) and (c) of this section, or a charter school's ADM for a fiscal year under (b) of this 06 section, the ADM is the greater of 07 (1) the community's or charter school's prior three-year average ADM 08 reported in the previous fiscal year under AS 14.17.600; 09 (2) the community's or charter school's ADM reported in the previous 10 fiscal year under AS 14.17.600; or 11 (3) the community's or charter school's ADM reported in the current 12 fiscal year under AS 14.17.600, but only if the community's or charter school's ADM 13 reported in the current fiscal year under AS 14.17.600 exceeds the greater of the 14 ADMs described in (1) or (2) of this subsection by five percent or more. 15  * Sec. 15. AS 14.17.990 is amended by adding a new paragraph to read: 16 (8) "prior three-year average ADM" means the number resulting from 17 combining the ADM counts from the three student count periods immediately 18 preceding a student count period conducted under AS 14.17.600(a) for a fiscal year 19 and dividing that sum by three. 20  * Sec. 16. Section 47, ch. 40, SLA 2022, is amended to read: 21 Sec. 47. AS 14.03.120(h), 14.03.410, 14.03.420; [AS 14.17.500(e), 22 14.17.500(f), 14.17.500(g);] AS 14.20.020(l); AS 14.30.760, 14.30.765, 14.30.770, 23 14.30.775, 14.30.780, and 14.30.800 are repealed. 24  * Sec. 17. AS 14.17.500 is repealed. 25  * Sec. 18. AS 14.17.600(f), 14.17.600(g), and 14.17.600(h) are repealed. 26  * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 TRANSITION: HOLD HARMLESS. Notwithstanding the repeal of 29 AS 14.17.410(b)(1)(E) - (G) by sec. 6 of this Act, a school district that meets the requirements 30 on July 1, 2026, to employ the method for calculating the school district's ADM adjusted for 31 school size as provided under AS 14.17.410(b)(1)(E) - (G), as those subparagraphs read on 01 the day before the effective date of sec. 6 of this Act, may continue to calculate the school 02 district's ADM adjusted for school size according to AS 14.17.410(b)(1)(E) - (G), as those 03 subparagraphs read on the day before the effective date of sec. 6 of this Act, until the school 04 district is no longer eligible to calculate the school district's ADM adjusted for school size 05 under AS 14.17.410(b)(1)(E) - (G), as those subparagraphs read on the day before the 06 effective date of sec. 6 of this Act. In this section, "ADM" has the meaning given in 07 AS 14.17.990. 08  * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 TRANSITION: ADM CALCULATION. (a) Notwithstanding AS 14.17.420(a)(2)(A), 11 as amended by sec. 7 of this Act, for the fiscal year ending June 30, 2027, if student count 12 data is unavailable to calculate the number of special education students who needed and 13 received intensive services and were enrolled on the last day of the count period conducted 14 under AS 14.17.600(a), a district shall use student count data that is applicable to the fiscal 15 year ending June 30, 2026, obtained under AS 14.17.420(a), as that section read on the day 16 before the effective date of sec. 7 of this Act. 17 (b) Notwithstanding AS 14.17.600(a), as amended by sec. 8 of this Act, 18 AS 14.17.905(d), added by sec. 14 of this Act, and AS 14.17.990(8), added by sec. 15 of this 19 Act, for the fiscal years ending June 30, 2027, June 30, 2028, and June 30, 2029, if student 20 count data is unavailable to calculate a school's prior three-year average ADM under 21 AS 14.17.600(a), as amended by sec. 8 of this Act, or a community's or charter school's prior 22 three-year average ADM under AS 14.17.905(d), added by sec. 14 of this Act, a school, 23 community, or charter school, as applicable, shall, for each year of the prior three-year 24 average ADM for which data is unavailable, use student count data that is applicable to that 25 year obtained under AS 14.17.600, as that section read on the day before the effective date of 26 sec. 8 of this Act. In this subsection, "ADM" has the meaning given in AS 14.17.990. 27  * Sec. 21. Sections 10 and 18 of this Act take effect on the effective date of sec. 47, ch. 40, 28 SLA 2022. 29  * Sec. 22. Except as provided in sec. 21 of this Act, this Act takes effect July 1, 2026.