SB 216: "An Act relating to the calculation of state aid for schools that consolidate; relating to the determination of the number of schools in a district; and providing for an effective date."
00 SENATE BILL NO. 216 01 "An Act relating to the calculation of state aid for schools that consolidate; relating to 02 the determination of the number of schools in a district; and providing for an effective 03 date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.17.410(b) is amended to read: 06 (b) Public school funding consists of state aid, a required local contribution, 07 and eligible federal impact aid determined as follows: 08 (1) state aid equals basic need minus a required local contribution and 09 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 10 obtained under (D) of this paragraph, multiplied by the base student allocation set out 11 in AS 14.17.470; district adjusted ADM is calculated as follows: 12 (A) the ADM of each school in the district is calculated by 13 applying the school size factor to the student count as set out in AS 14.17.450; 14 (B) the number obtained under (A) of this paragraph is
01 multiplied by the district cost factor described in AS 14.17.460; 02 (C) the ADMs of each school in a district, as adjusted 03 according to (A) and (B) of this paragraph, are added; the sum is then 04 multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 05 secondary school vocational and technical instruction funding factor set out in 06 AS 14.17.420(a)(3); 07 (D) the number obtained for intensive services under 08 AS 14.17.420(a)(2) and the number obtained for correspondence study under 09 AS 14.17.430 are added to the number obtained under (C) of this paragraph or 10 under (H) and (I) of this paragraph; 11 (E) notwithstanding (A) - (C) of this paragraph, if a school 12 district's ADM adjusted for school size under (A) of this paragraph decreases 13 by five percent or more from one fiscal year to the next fiscal year, the school 14 district may use the last fiscal year before the decrease as a base fiscal year to 15 offset the decrease, according to the following method: 16 (i) for the first fiscal year after the base fiscal year 17 determined under this subparagraph, the school district's ADM adjusted 18 for school size determined under (A) of this paragraph is calculated as 19 the district's ADM adjusted for school size, plus 75 percent of the 20 difference in the district's ADM adjusted for school size between the 21 base fiscal year and the first fiscal year after the base fiscal year; 22 (ii) for the second fiscal year after the base fiscal year 23 determined under this subparagraph, the school district's ADM adjusted 24 for school size determined under (A) of this paragraph is calculated as 25 the district's ADM adjusted for school size, plus 50 percent of the 26 difference in the district's ADM adjusted for school size between the 27 base fiscal year and the second fiscal year after the base fiscal year; 28 (iii) for the third fiscal year after the base fiscal year 29 determined under this subparagraph, the school district's ADM adjusted 30 for school size determined under (A) of this paragraph is calculated as 31 the district's ADM adjusted for school size, plus 25 percent of the
01 difference in the district's ADM adjusted for school size between the 02 base fiscal year and the third fiscal year after the base fiscal year; 03 (F) the method established in (E) of this paragraph is available 04 to a school district for the three fiscal years following the base fiscal year 05 determined under (E) of this paragraph only if the district's ADM adjusted for 06 school size determined under (A) of this paragraph for each fiscal year is less 07 than the district's ADM adjusted for school size in the base fiscal year; 08 (G) the method established in (E) of this paragraph does not 09 apply to a decrease in the district's ADM adjusted for school size resulting 10 from a loss of enrollment that occurs as a result of a boundary change under 11 AS 29; 12 (H) notwithstanding (A) - (C) of this paragraph, if one or 13 more schools close and consolidate with one or more other schools in the 14 same community and district and, as a result of the consolidation, state aid 15 generated by the district's ADM of the consolidated schools as adjusted 16 under (A) - (C) of this paragraph decreases, the district may use the last 17 fiscal year before the consolidation as the base fiscal year to offset that 18 decrease for the first four fiscal years following consolidation according to 19 the following method: 20 (i) for the first two fiscal years after the base fiscal 21 year, the district's ADM of the consolidated schools as adjusted 22 under (A) - (C) of this paragraph is calculated by dividing the sum 23 of the district's ADM of the consolidated schools as adjusted under 24 (A) - (C) of this paragraph for the base fiscal year by the sum of the 25 district's ADM of the consolidated schools for the base fiscal year 26 without adjustment, and subtracting the quotient obtained by 27 dividing the district's ADM of the consolidated schools for the 28 current fiscal year as adjusted under (A) - (C) of this paragraph by 29 the sum of the district's ADM of the consolidated schools for the 30 current fiscal year without adjustment, multiplying that number 31 by the sum of the district's ADM of the consolidated schools for the
01 current fiscal year without adjustment, and adding that number to 02 the sum of the district's ADM of the consolidated schools for the 03 current fiscal year as adjusted under (A) - (C) of this paragraph; 04 (ii) for the third fiscal year after the base fiscal year, 05 the district's ADM of the consolidated schools as adjusted under 06 (A) - (C) of this paragraph is calculated by dividing the sum of the 07 district's ADM of the consolidated schools as adjusted under (A) - 08 (C) of this paragraph for the base fiscal year by the sum of the 09 district's ADM of the consolidated schools for the base fiscal year 10 without adjustment, and subtracting the quotient obtained by 11 dividing the sum of the district's ADM of the consolidated schools 12 for the current fiscal year as adjusted under (A) - (C) of this 13 paragraph by the sum of the district's ADM of the consolidated 14 schools for the current fiscal year, multiplying that number by the 15 sum of the district's ADM of the consolidated schools for the 16 current fiscal year without adjustment, multiplying that number 17 by 66 percent, and adding that number to the sum of the district's 18 ADM of the consolidated schools for the current fiscal year as 19 adjusted under (A) - (C) of this paragraph; 20 (iii) for the fourth fiscal year after the base fiscal 21 year, the district's ADM of the consolidated schools as adjusted 22 under (A) - (C) of this paragraph is calculated by dividing the sum 23 of the district's ADM of the consolidated schools as adjusted under 24 (A) - (C) of this paragraph for the base fiscal year by the sum of the 25 district's ADM of the consolidated schools for the base fiscal year 26 without adjustment, and subtracting the quotient obtained by 27 dividing the sum of the district's ADM of the consolidated schools 28 for the current fiscal year as adjusted under (A) - (C) of this 29 paragraph by the sum of the district's ADM of the consolidated 30 schools for the current fiscal year, multiplying that number by the 31 sum of the district's ADM of the consolidated schools for the
01 current fiscal year without adjustment, multiplying that number 02 by 33 percent, and adding that number to the sum of the district's 03 ADM of the consolidated schools for the current fiscal year as 04 adjusted under (A) - (C) of this paragraph; 05 (iv) to calculate the district's state aid for each fiscal 06 year, the number obtained through the calculation in (i), (ii), or (iii) 07 of this subparagraph is added to the number obtained under (C) of 08 this paragraph for the remainder of the district; 09 (I) if the state aid calculated under (H)(i) - (iii) of this 10 paragraph for one of the first four fiscal years after consolidation is less 11 than the state aid calculated under (A) - (C) of this paragraph for that 12 fiscal year, the state aid may not be adjusted under (H) of this paragraph 13 for that fiscal year; 14 (J) a district may not offset a decrease under both (E) and 15 (H) of this paragraph in the same fiscal year; 16 (K) a district may not offset a decrease under (H) of this 17 paragraph if a new facility is constructed in the district for the 18 consolidation; 19 (L) a district may not reopen and reconsolidate a school 20 that was consolidated in the district more than once every seven years for 21 purposes of the calculations made under (H) of this paragraph; 22 (M) a district offsetting a decrease under (H) of this 23 paragraph shall provide the department with the appropriate calculations 24 for the department to verify; 25 (N) in this paragraph, "community" means an organized 26 municipality or an unincorporated village that is a social unit if the 27 organized municipality or unincorporated village has a population of less 28 than 2,000 people; 29 (2) the required local contribution of a city or borough school district is 30 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 31 personal property in the district as of January 1 of the second preceding fiscal year, as
01 determined by the Department of Commerce, Community, and Economic 02 Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 03 district's basic need for the preceding fiscal year as determined under (1) of this 04 subsection. 05 * Sec. 2. AS 14.17.905 is amended by adding a new subsection to read: 06 (c) Notwithstanding (a)(2) and (a)(3) of this section, in a community with an 07 ADM of greater than 425 that has only one facility administered as a school for 08 students in grades kindergarten through 12, the number of schools for the community 09 shall be counted under (a)(2) of this section. 10 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 APPLICABILITY. AS 14.17.410(b), as amended by sec. 1 of this Act, applies to 13 schools that consolidate on or after the effective date of this Act. 14 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).