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CSHB 27(EDC): "An Act relating to student counts, unreserved school operating fund balances, restrictions on school district money, and estimates for public school funding; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 27(EDC) 01 "An Act relating to student counts, unreserved school operating fund balances, 02 restrictions on school district money, and estimates for public school funding; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.11.100(o) is amended to read: 06 (o) The total amount of school construction projects approved for 07 reimbursement by the department under (a)(10) of this section 08 (1) may not exceed $190,644,901; and 09 (2) after June 30, 1998, and until July 1, 2006, shall be allocated as 10 follows: 11 (A) $77,897,000 to projects in a municipality with a public 12 school enrollment of 25,000 or more students in fiscal year 2000, as 13 determined under former AS 14.17.500; 14 (B) $14,571,000 to projects in a municipality with a public

01 school enrollment of at least 15,000 but less than 25,000 students in fiscal year 02 2000, as determined under former AS 14.17.500; 03 (C) $14,143,000 to projects in a municipality with a public 04 school enrollment of at least 10,000 but less than 15,000 students in fiscal year 05 2000, as determined under former AS 14.17.500; 06 (D) $7,429,000 to projects in a municipality with a public 07 school enrollment of at least 7,500 but less than 10,000 students in fiscal year 08 2000, as determined under former AS 14.17.500; 09 (E) $20,712,912 to projects in a municipality with a public 10 school enrollment of at least 5,000 but less than 7,500 students in fiscal year 11 2000, as determined under former AS 14.17.500; 12 (F) $2,660,000 to projects in a municipality with a public 13 school enrollment of at least 2,750 but less than 3,000 students in fiscal year 14 2000, as determined under former AS 14.17.500; 15 (G) $454,000 to projects in a municipality with a public school 16 enrollment of at least 2,400 but less than 2,750 students in fiscal year 2000, as 17 determined under former AS 14.17.500; 18 (H) $46,869,989 to projects in a municipality with a public 19 school enrollment of at least 2,050 but less than 2,400 students in fiscal year 20 2000, as determined under former AS 14.17.500; 21 (I) $329,000 to projects in a municipality with a public school 22 enrollment of at least 1,700 but less than 1,750 students in fiscal year 2000, as 23 determined under former AS 14.17.500; 24 (J) $286,000 to projects in a municipality with a public school 25 enrollment of at least 650 but less than 725 students in fiscal year 2000, as 26 determined under former AS 14.17.500; 27 (K) $519,000 to projects in a municipality with a public school 28 enrollment of at least 500 but less than 525 students in fiscal year 2000, as 29 determined under former AS 14.17.500; 30 (L) $2,224,000 to projects in a municipality with a public 31 school enrollment of at least 425 but less than 482 students in fiscal year 2000,

01 as determined under former AS 14.17.500; 02 (M) $2,550,000 to projects in a municipality with a public 03 school enrollment of at least 290 but less than 305 students in fiscal year 2000, 04 as determined under former AS 14.17.500. 05 * Sec. 2. AS 14.11.100(p) is amended to read: 06 (p) The total amount of school construction projects approved for 07 reimbursement by the department under (a)(13) and (a)(14) of this section 08 (1) may not exceed $177,256,000; 09 (2) after June 30, 1999, and until October 31, 2006, shall be allocated 10 as follows: 11 (A) $61,925,000 to projects in a municipality with a public 12 school enrollment of 45,000 or more students in fiscal year 2005, as 13 determined under former AS 14.17.500; 14 (B) $40,570,000 to projects in a municipality with a public 15 school enrollment of at least 14,600 but less than 20,000 students in fiscal year 16 2005, as determined under former AS 14.17.500; 17 (C) $20,000,000 to projects in a municipality with a public 18 school enrollment of at least 10,000 but less than 14,600 students in fiscal year 19 2005, as determined under former AS 14.17.500; 20 (D) $2,588,000 to projects in a municipality with a public 21 school enrollment of at least 7,500 but less than 10,000 students in fiscal year 22 2005, as determined under former AS 14.17.500; 23 (E) $5,995,000 to projects in a municipality with a public 24 school enrollment of at least 4,000 but less than 6,000 students in fiscal year 25 2005, as determined under former AS 14.17.500; 26 (F) $1,237,000 to projects in a municipality with a public 27 school enrollment of at least 2,400 but less than 2,800 students in fiscal year 28 2005, as determined under former AS 14.17.500; 29 (G) $1,100,000 to projects in a municipality with a public 30 school enrollment of at least 2,200 but less than 2,400 students in fiscal year 31 2005, as determined under former AS 14.17.500;

01 (H) $7,164,000 to projects in a municipality with a public 02 school enrollment of at least 1,300 but less than 1,500 students in fiscal year 03 2005, as determined under former AS 14.17.500; 04 (I) $1,260,000 to projects in a municipality with a public 05 school enrollment of at least 740 but less than 757 students in fiscal year 2005, 06 as determined under former AS 14.17.500; 07 (J) $608,000 to projects in a municipality with a public school 08 enrollment of at least 650 but less than 700 students in fiscal year 2005, as 09 determined under former AS 14.17.500; 10 (K) $32,000,000 to projects in a municipality with a public 11 school enrollment of at least 500 but less than 600 students in fiscal year 2005, 12 as determined under former AS 14.17.500; 13 (L) $2,809,000 to projects in a municipality with a public 14 school enrollment of at least 370 but less than 390 students in fiscal year 2005, 15 as determined under former AS 14.17.500. 16 * Sec. 3. AS 14.11.100(q) is amended to read: 17 (q) The total amount of school construction projects approved for 18 reimbursement by the department under (a)(15) of this section 19 (1) may not exceed $14,644,000; 20 (2) after June 30, 1999, and until October 31, 2006, shall be allocated 21 as follows: 22 (A) $6,522,000 to projects in a municipality with a public 23 school enrollment of at least 1,925 but less than 2,025 students in fiscal year 24 2005, as determined under former AS 14.17.500; 25 (B) $8,122,000 to projects in a municipality with a public 26 school enrollment of at least 398 but less than 400 students in fiscal year 2005, 27 as determined under former AS 14.17.500. 28 * Sec. 4. AS 14.14.060(c) is amended to read: 29 (c) Except as otherwise provided by municipal ordinance, the borough school 30 board shall submit the school budget for the following school year to the borough 31 assembly by May 1 for approval of the total amount. Within 30 days after receipt of

01 the budget, the assembly shall determine the total amount of money to be made 02 available from local sources for school purposes and shall furnish the school board 03 with a statement of the sum to be made available. If the assembly does not, within 30 04 days, furnish the school board with a statement of the sum to be made available, the 05 amount requested in the budget is automatically approved. Except as otherwise 06 provided by municipal ordinance, by June 30, the assembly shall appropriate the 07 amount to be made available from local sources from money available for the purpose. 08 The assembly may not reallocate or reappropriate for another purpose the 09 amount appropriated from local sources to the district for school purposes unless 10 the unrestricted portion of the year-end balance in the district's school operating 11 fund exceeds the amount set in AS 14.17.505(a). 12 * Sec. 5. AS 14.16.050(a) is amended to read: 13 (a) The following provisions apply with respect to the operation and 14 management of a state boarding school as if it were a school district: 15 (1) requirements relating to school district operations: 16 (A) AS 14.03.030 - 14.03.050 (defining the school term, day in 17 session, and school holidays); 18 (B) AS 14.03.083 - 14.03.140 (miscellaneous provisions 19 applicable to school district operations); 20 (C) regulations adopted by the board under authority of AS 21 14.07.020(a) that are applicable to school districts and their schools, unless the 22 board specifically exempts state boarding schools from compliance with a 23 regulation; 24 (D) AS 14.12.150 (authorizing school districts to establish and 25 participate in the services of a regional resource center); 26 (E) AS 14.14.050 (imposing the requirement of an annual 27 audit); 28 (F) AS 14.14.110 (authorizing cooperation with other school 29 districts); 30 (G) AS 14.14.140(b) (establishing a prohibition on 31 employment of a relative of the chief school administrator);

01 (H) AS 14.18 (prohibiting discrimination based on sex in 02 public education); 03 (2) requirements relating to the public school funding program and the 04 receipt and expenditure of that funding: 05 (A) [AS 14.17.500 (RELATING TO STUDENT COUNT 06 ESTIMATES); 07 (B)] AS 14.17.505 (relating to school operating fund balances); 08 (B) AS 14.17.505 - 14.17.910 [(C) AS 14.17.500 - 14.17.910] 09 (setting out the procedure for payment of public school funding and imposing 10 general requirements and limits on money paid); 11 (3) requirements relating to teacher employment and retirement: 12 (A) AS 14.14.105 and 14.14.107 (relating to sick leave); 13 (B) AS 14.20.095 - 14.20.215 (relating to the employment and 14 tenure of teachers); 15 (C) AS 14.20.220 (relating to the salaries of teachers 16 employed); 17 (D) AS 14.20.280 - 14.20.350 (relating to sabbatical leave 18 provisions for teachers); 19 (E) AS 23.40.070 - 23.40.260 (authorizing collective 20 bargaining by certificated employees), except with regard to teachers who are 21 administrators and except that the board may delegate some or all of its 22 responsibilities under those statutes; 23 (F) AS 14.25 (provisions regarding the teachers' retirement 24 system); 25 (4) requirements relating to students and educational programs: 26 (A) AS 14.30.180 - 14.30.350 (relating to educational services 27 for children with disabilities); 28 (B) AS 14.30.360 - 14.30.370 (establishing health education 29 program standards); 30 (C) AS 14.30.400 - 14.30.410 (relating to bilingual and 31 bicultural education).

01 * Sec. 6. AS 14.17.410(b) is amended to read: 02 (b) Public school funding consists of state aid, a required local contribution, 03 and eligible federal impact aid determined as follows: 04 (1) state aid equals basic need minus a required local contribution and 05 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 06 obtained under (D) of this paragraph, multiplied by the base student allocation set out 07 in AS 14.17.470; district adjusted ADM is calculated as follows: 08 (A) the ADM of each school in the district is calculated by 09 applying the school size factor to the student count as set out in AS 14.17.450; 10 (B) the number obtained under (A) of this paragraph is 11 multiplied by the district cost factor described in AS 14.17.460; 12 (C) the ADMs of each school in a district, as adjusted 13 according to (A) and (B) of this paragraph, are added; the sum is then 14 multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 15 secondary school vocational and technical instruction funding factor set out in 16 AS 14.17.420(a)(3); 17 (D) the number obtained for intensive services under AS 18 14.17.420(a)(2) and the number obtained for correspondence study under AS 19 14.17.430 are added to the number obtained under (C) of this paragraph; 20 (E) notwithstanding (A) - (C) of this paragraph, if a 21 district's adjusted ADM under (D) of this paragraph increases by at least 22 200 or three percent, whichever is less, from one fiscal year to the next 23 fiscal year, the department shall provide supplemental funding that is 24 equal to the increase in the adjusted ADM multiplied by the base student 25 allocation for the current fiscal year; however, if a district is otherwise 26 unable to meet funding needs for the current fiscal year because of an 27 increase in enrollment and the district does not qualify for supplemental 28 funding under this subparagraph, the district may apply to the 29 department for, and the department may request, supplemental funding 30 for the current fiscal year [NOTWITHSTANDING (A) - (C) OF THIS 31 PARAGRAPH, IF A SCHOOL DISTRICT'S ADM ADJUSTED FOR

01 SCHOOL SIZE UNDER (A) OF THIS PARAGRAPH DECREASES BY 02 FIVE PERCENT OR MORE FROM ONE FISCAL YEAR TO THE NEXT 03 FISCAL YEAR, THE SCHOOL DISTRICT MAY USE THE LAST FISCAL 04 YEAR BEFORE THE DECREASE AS A BASE FISCAL YEAR TO 05 OFFSET THE DECREASE, ACCORDING TO THE FOLLOWING 06 METHOD: 07 (i) FOR THE FIRST FISCAL YEAR AFTER THE 08 BASE FISCAL YEAR DETERMINED UNDER THIS 09 SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 10 FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 11 PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 12 ADJUSTED FOR SCHOOL SIZE, PLUS 75 PERCENT OF THE 13 DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 14 SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 15 FIRST FISCAL YEAR AFTER THE BASE FISCAL YEAR; 16 (ii) FOR THE SECOND FISCAL YEAR AFTER THE 17 BASE FISCAL YEAR DETERMINED UNDER THIS 18 SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 19 FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 20 PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 21 ADJUSTED FOR SCHOOL SIZE, PLUS 50 PERCENT OF THE 22 DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 23 SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 24 SECOND FISCAL YEAR AFTER THE BASE FISCAL YEAR; 25 (iii) FOR THE THIRD FISCAL YEAR AFTER THE 26 BASE FISCAL YEAR DETERMINED UNDER THIS 27 SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 28 FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 29 PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 30 ADJUSTED FOR SCHOOL SIZE, PLUS 25 PERCENT OF THE 31 DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR

01 SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 02 THIRD FISCAL YEAR AFTER THE BASE FISCAL YEAR; 03 (F) THE METHOD ESTABLISHED IN (E) OF THIS 04 PARAGRAPH IS AVAILABLE TO A SCHOOL DISTRICT FOR THE 05 THREE FISCAL YEARS FOLLOWING THE BASE FISCAL YEAR 06 DETERMINED UNDER (E) OF THIS PARAGRAPH ONLY IF THE 07 DISTRICT'S ADM ADJUSTED FOR SCHOOL SIZE DETERMINED 08 UNDER (A) OF THIS PARAGRAPH FOR EACH FISCAL YEAR IS LESS 09 THAN THE DISTRICT'S ADM ADJUSTED FOR SCHOOL SIZE IN THE 10 BASE FISCAL YEAR]; 11 (F) [(G)] the method established in (E) of this paragraph does 12 not apply to a decrease in the district's ADM adjusted for school size resulting 13 from a loss of enrollment that occurs as a result of a boundary change under 14 AS 29; 15 (2) the required local contribution of a city or borough school district is 16 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 17 personal property in the district as of January 1 of the second preceding fiscal year, as 18 determined by the Department of Commerce, Community, and Economic 19 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 20 district's basic need for the preceding fiscal year as determined under (1) of this 21 subsection. 22 * Sec. 7. AS 14.17.505(a) is amended to read: 23 (a) A district may not accumulate in a fiscal year an unreserved portion of its 24 year-end fund balance in its school operating fund, as defined by department 25 regulations, that is greater than 15 [10] percent of its expenditures for that fiscal year. 26 * Sec. 8. AS 14.17.600(a) is amended to read: 27 (a) Within two weeks after the end of the 20-school-day period ending the 28 fourth Friday in October, each district shall transmit a report to the department that, 29 under regulations adopted by the department, reports its ADM for that count period 30 and other student count information that will aid the department in making a 31 determination of its state aid for the succeeding fiscal year under the public school

01 funding program. For centralized correspondence study, the October report shall be 02 based on the period from July 1 through the fourth Friday in October. The department 03 may make necessary corrections in the report submitted and shall notify the district of 04 changes made. The commissioner shall notify the governor of additional 05 appropriations the commissioner estimates to be necessary to fully finance the public 06 school funding program for the current fiscal year. 07 * Sec. 9. AS 14.17.600 is amended by adding new subsections to read: 08 (c) A student count shall be adjusted for the current fiscal year as provided 09 under AS 14.17.410(b)(1). 10 (d) Part-time students shall be included in the student count data in accordance 11 with regulations adopted by the department. 12 (e) When reporting a district's ADM, a part-time student who is a 13 correspondence student may not be counted as more than one full-time equivalent 14 student. 15 * Sec. 10. AS 14.17.500 is repealed. 16 * Sec. 11. This Act takes effect July 1, 2015.