00CS FOR HOUSE BILL NO. 452(HES)                                                                                          
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  AS 14.17.021 is repealed and reenacted to read:                                                        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 required                            
08 local contributions under AS 14.17.025(a) and 90 percent of eligible federal impact aid                                 
09 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 fiscal                           
13 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 instructional                               
03 unit value in AS 14.17.056.                                                                                             
04  (d)  The department may make adjustments to a district's state foundation aid for                                     
05 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 aid                                             
09 for which a regional educational attendance area may qualify under AS 14.17.021(b), a                                   
10 regional educational attendance area may qualify for supplementary state aid.  The                                      
11 amount of supplementary state aid for which a regional educational attendance area may                                  
12 qualify in a fiscal year is calculated by multiplying the area cost differential of the                                 
13 regional educational attendance area under AS 14.17.051 by the number of instructional                                  
14 units in the regional educational attendance area determined under AS 14.17.031 and                                     
15 then multiplying that product by a unit allotment of $500.                                                              
16  (b)  The department may, by regulation, increase the unit allotment specified in                                      
17 (a) of this section if necessary to keep revenue disparities among school districts in the                              
18 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 within                                       
21 each district that reflect geographic and attendance area factors. For the purpose of                                   
22 determining instructional units, students are counted in the district and the funding                                   
23 community from which they receive educational services. The total number of                                             
24 instructional units in a school district is the sum of the following units for each funding                             
25 community within the district, as determined by the department:                                                         
26   (1)  the number of units for elementary and secondary students determined                                            
27 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.  This Act takes effect July 1, 1996.