SB 278: "An Act relating to the required local contribution made by a city or borough school district for public school funding; and providing for an effective date."
00 SENATE BILL NO. 278 01 "An Act relating to the required local contribution made by a city or borough school 02 district for public school funding; and providing for an 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) and the 04 secondary school vocational and technical instruction funding factor set out in 05 AS 14.17.420(a)(3); 06 (D) the number obtained for intensive services under 07 AS 14.17.420(a)(2) and the number obtained for correspondence study under 08 AS 14.17.430 are added to the number obtained under (C) of this paragraph or 09 under (H) and (I) of this paragraph; 10 (E) notwithstanding (A) - (C) of this paragraph, if a school 11 district's ADM adjusted for school size under (A) of this paragraph decreases 12 by five percent or more from one fiscal year to the next fiscal year, the school 13 district may use the last fiscal year before the decrease as a base fiscal year to 14 offset the decrease, according to the following method: 15 (i) for the first fiscal year after the base fiscal year 16 determined under this subparagraph, the school district's ADM adjusted 17 for school size determined under (A) of this paragraph is calculated as 18 the district's ADM adjusted for school size, plus 75 percent of the 19 difference in the district's ADM adjusted for school size between the 20 base fiscal year and the first fiscal year after the base fiscal year; 21 (ii) for the second fiscal year after the base fiscal year 22 determined under this subparagraph, the school district's ADM adjusted 23 for school size determined under (A) of this paragraph is calculated as 24 the district's ADM adjusted for school size, plus 50 percent of the 25 difference in the district's ADM adjusted for school size between the 26 base fiscal year and the second fiscal year after the base fiscal year; 27 (iii) for the third fiscal year after the base fiscal year 28 determined under this subparagraph, the school district's ADM adjusted 29 for school size determined under (A) of this paragraph is calculated as 30 the district's ADM adjusted for school size, plus 25 percent of the 31 difference in the district's ADM adjusted for school size between the
01 base fiscal year and the third fiscal year after the base fiscal year; 02 (F) the method established in (E) of this paragraph is available 03 to a school district for the three fiscal years following the base fiscal year 04 determined under (E) of this paragraph only if the district's ADM adjusted for 05 school size determined under (A) of this paragraph for each fiscal year is less 06 than the district's ADM adjusted for school size in the base fiscal year; 07 (G) the method established in (E) of this paragraph does not 08 apply to a decrease in the district's ADM adjusted for school size resulting 09 from a loss of enrollment that occurs as a result of a boundary change under 10 AS 29; 11 (H) notwithstanding (A) - (C) of this paragraph, if one or more 12 schools close and consolidate with one or more other schools in the same 13 community and district and, as a result of the consolidation, basic need 14 generated by the district's ADM of the consolidated schools as adjusted under 15 (A) - (C) of this paragraph decreases, the district may use the last fiscal year 16 before the consolidation as the base fiscal year to offset that decrease for the 17 first four fiscal years following consolidation according to the following 18 method: 19 (i) for the first two fiscal years after the base fiscal year, 20 the district's ADM of the consolidated schools as adjusted under (A) - 21 (C) of this paragraph is calculated by dividing the sum of the district's 22 ADM of the consolidated schools as adjusted under (A) - (C) of this 23 paragraph for the base fiscal year by the sum of the district's ADM of 24 the consolidated schools for the base fiscal year without adjustment, 25 and subtracting the quotient obtained by dividing the district's ADM of 26 the consolidated schools for the current fiscal year as adjusted under 27 (A) - (C) of this paragraph by the sum of the district's ADM of the 28 consolidated schools for the current fiscal year without adjustment, 29 multiplying that number by the sum of the district's ADM of the 30 consolidated schools for the current fiscal year without adjustment, and 31 adding that number to the sum of the district's ADM of the consolidated
01 schools for the current fiscal year as adjusted under (A) - (C) of this 02 paragraph; 03 (ii) for the third fiscal year after the base fiscal year, the 04 district's ADM of the consolidated schools as adjusted under (A) - (C) 05 of this paragraph is calculated by dividing the sum of the district's 06 ADM of the consolidated schools as adjusted under (A) - (C) of this 07 paragraph for the base fiscal year by the sum of the district's ADM of 08 the consolidated schools for the base fiscal year without adjustment, 09 and subtracting the quotient obtained by dividing the sum of the 10 district's ADM of the consolidated schools for the current fiscal year as 11 adjusted under (A) - (C) of this paragraph by the sum of the district's 12 ADM of the consolidated schools for the current fiscal year, 13 multiplying that number by the sum of the district's ADM of the 14 consolidated schools for the current fiscal year without adjustment, 15 multiplying that number by 66 percent, and adding that number to the 16 sum of the district's ADM of the consolidated schools for the current 17 fiscal year as adjusted under (A) - (C) of this paragraph; 18 (iii) for the fourth fiscal year after the base fiscal year, 19 the district's ADM of the consolidated schools as adjusted under (A) - 20 (C) of this paragraph is calculated by dividing the sum of the district's 21 ADM of the consolidated schools as adjusted under (A) - (C) of this 22 paragraph for the base fiscal year by the sum of the district's ADM of 23 the consolidated schools for the base fiscal year without adjustment, 24 and subtracting the quotient obtained by dividing the sum of the 25 district's ADM of the consolidated schools for the current fiscal year as 26 adjusted under (A) - (C) of this paragraph by the sum of the district's 27 ADM of the consolidated schools for the current fiscal year, 28 multiplying that number by the sum of the district's ADM of the 29 consolidated schools for the current fiscal year without adjustment, 30 multiplying that number by 33 percent, and adding that number to the 31 sum of the district's ADM of the consolidated schools for the current
01 fiscal year as adjusted under (A) - (C) of this paragraph; 02 (iv) to calculate the district's basic need for each fiscal 03 year, the number obtained through the calculation in (i), (ii), or (iii) of 04 this subparagraph is added to the number obtained under (C) of this 05 paragraph for the remainder of the district; 06 (I) if the basic need calculated under (H)(i) - (iii) of this 07 paragraph for one of the first four fiscal years after consolidation is less than 08 the basic need calculated under (A) - (C) of this paragraph for that fiscal year, 09 the basic need may not be adjusted under (H) of this paragraph for that fiscal 10 year; 11 (J) a district may not offset a decrease under (H) of this 12 paragraph if 13 (i) a new facility is constructed in the district for the 14 consolidation; or 15 (ii) the district offset a decrease under (E) of this 16 paragraph in the same fiscal year; 17 (K) a district that offsets a decrease under (H) of this paragraph 18 may not reopen a school that was closed for consolidation in the district until 19 (i) seven or more years have passed since the school 20 closure; and 21 (ii) the district provides evidence satisfactory to the 22 department that the schools affected by the consolidation are over 23 capacity; 24 (L) a district may not reopen and reconsolidate a school that 25 was consolidated in the district more than once every seven years for purposes 26 of the calculations made under (H) of this paragraph; 27 (M) a district offsetting a decrease under (H) of this paragraph 28 shall provide the department with the list of schools participating in the 29 consolidation and the corresponding ADM; 30 (2) the required local contribution of a city or borough school district is 31 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and
01 personal property in the district as of January 1 of the second preceding fiscal year, as 02 determined by the Department of Commerce, Community, and Economic 03 Development under AS 14.17.510 and AS 29.45.110; the required local 04 contribution may [,] not [TO] exceed 05 (A) 45 percent of a district's basic need for the preceding fiscal 06 year as determined under (1) of this subsection; or 07 (B) the amount of the district's required local contribution 08 for the preceding fiscal year by more than two percent. 09 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 RETROACTIVITY. This Act is retroactive to July 1, 2025. 12 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).