CSSB 278(EDC): "An Act relating to school consolidation; 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 CS FOR SENATE BILL NO. 278(EDC) 01 "An Act relating to school consolidation; relating to the required local contribution 02 made by a city or borough school district for public school funding; and providing for 03 an effective 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 more 13 schools close and consolidate with one or more other schools in the same 14 community and district and, as a result of the consolidation, basic need 15 generated by the district's ADM of the consolidated schools as adjusted under 16 (A) - (C) of this paragraph decreases, the district may use the last fiscal year 17 before the consolidation as the base fiscal year to offset that decrease for the 18 first four fiscal years following consolidation according to the following 19 method: 20 (i) for the first two fiscal years after the base fiscal year, 21 the district's ADM of the consolidated schools as adjusted under (A) - 22 (C) of this paragraph is calculated by dividing the sum of the district's 23 ADM of the consolidated schools as adjusted under (A) - (C) of this 24 paragraph for the base fiscal year by the sum of the district's ADM of 25 the consolidated schools for the base fiscal year without adjustment, 26 and subtracting the quotient obtained by dividing the district's ADM of 27 the consolidated schools for the current fiscal year as adjusted under 28 (A) - (C) of this paragraph 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 the sum of the district's ADM of the 31 consolidated schools for the current fiscal year without adjustment, and
01 adding that number to the sum of the district's ADM of the consolidated 02 schools for the current fiscal year as adjusted under (A) - (C) of this 03 paragraph; 04 (ii) for the third fiscal year after the base fiscal year, the 05 district's ADM of the consolidated schools as adjusted under (A) - (C) 06 of this paragraph is calculated by dividing the sum of the district's 07 ADM of the consolidated schools as adjusted under (A) - (C) of this 08 paragraph for the base fiscal year by the sum of the district's ADM of 09 the consolidated schools for the base fiscal year without adjustment, 10 and subtracting the quotient obtained by dividing the sum of the 11 district's ADM of the consolidated schools for the current fiscal year as 12 adjusted under (A) - (C) of this paragraph by the sum of the district's 13 ADM of the consolidated schools for the current fiscal year, 14 multiplying that number by the sum of the district's ADM of the 15 consolidated schools for the current fiscal year without adjustment, 16 multiplying that number by 66 percent, and adding that number to the 17 sum of the district's ADM of the consolidated schools for the current 18 fiscal year as adjusted under (A) - (C) of this paragraph; 19 (iii) for the fourth fiscal year 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 sum of the 26 district's ADM of the consolidated schools for the current fiscal year as 27 adjusted under (A) - (C) of this paragraph by the sum of the district's 28 ADM of the consolidated schools for the current fiscal year, 29 multiplying that number by the sum of the district's ADM of the 30 consolidated schools for the current fiscal year without adjustment, 31 multiplying that number by 33 percent, and adding that number to the
01 sum of the district's ADM of the consolidated schools for the current 02 fiscal year as adjusted under (A) - (C) of this paragraph; 03 (iv) to calculate the district's basic need for each fiscal 04 year, the number obtained through the calculation in (i), (ii), or (iii) of 05 this subparagraph is added to the number obtained under (C) of this 06 paragraph for the remainder of the district; 07 (I) if the basic need calculated under (H)(i) - (iii) of this 08 paragraph for one of the first four fiscal years after consolidation is less than 09 the basic need calculated under (A) - (C) of this paragraph for that fiscal year, 10 the basic need may not be adjusted under (H) of this paragraph for that fiscal 11 year; 12 (J) a district may not offset a decrease under (H) of this 13 paragraph if 14 (i) a new facility is constructed in the district for the 15 consolidation; or 16 (ii) the district offset a decrease under (E) of this 17 paragraph in the same fiscal year; 18 (K) a district that offsets a decrease under (H) of this paragraph 19 may not reopen a school that was closed for consolidation in the district until 20 (i) four [SEVEN] or more years have passed since the 21 school closure; and 22 (ii) the district provides evidence satisfactory to the 23 department that the schools affected by the consolidation are over 24 capacity; 25 (L) a district may not reopen and reconsolidate a school that 26 was consolidated in the district more than once every four [SEVEN] years for 27 purposes of the calculations made under (H) of this paragraph; 28 (M) a district offsetting a decrease under (H) of this paragraph 29 shall provide the department with the list of schools participating in the 30 consolidation and the corresponding ADM; 31 (2) the required local contribution of a city or borough school district is
01 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 02 personal property in the district as of January 1 of the second preceding fiscal year, as 03 determined by the Department of Commerce, Community, and Economic 04 Development under AS 14.17.510 and AS 29.45.110; the required local 05 contribution may [,] not [TO] exceed 06 (A) 45 percent of a district's basic need for the preceding fiscal 07 year as determined under (1) of this subsection; or 08 (B) the amount of the district's required local contribution 09 for the preceding fiscal year by more than five percent. 10 * Sec. 2. AS 14.17.410(b), as amended by sec. 1 of this Act, is amended to read: 11 (b) Public school funding consists of state aid, a required local contribution, 12 and eligible federal impact aid determined as follows: 13 (1) state aid equals basic need minus a required local contribution and 14 90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 15 obtained under (D) of this paragraph, multiplied by the base student allocation set out 16 in AS 14.17.470; district adjusted ADM is calculated as follows: 17 (A) the ADM of each school in the district is calculated by 18 applying the school size factor to the student count as set out in AS 14.17.450; 19 (B) the number obtained under (A) of this paragraph is 20 multiplied by the district cost factor described in AS 14.17.460; 21 (C) the ADMs of each school in a district, as adjusted 22 according to (A) and (B) of this paragraph, are added; the sum is then 23 multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 24 secondary school vocational and technical instruction funding factor set out in 25 AS 14.17.420(a)(3); 26 (D) the number obtained for intensive services under 27 AS 14.17.420(a)(2) and the number obtained for correspondence study under 28 AS 14.17.430 are added to the number obtained under (C) of this paragraph or 29 under (H) and (I) of this paragraph; 30 (E) notwithstanding (A) - (C) of this paragraph, if a school 31 district's ADM adjusted for school size under (A) of this paragraph decreases
01 by five percent or more from one fiscal year to the next fiscal year, the school 02 district may use the last fiscal year before the decrease as a base fiscal year to 03 offset the decrease, according to the following method: 04 (i) for the first fiscal year after the base fiscal year 05 determined under this subparagraph, the school district's ADM adjusted 06 for school size determined under (A) of this paragraph is calculated as 07 the district's ADM adjusted for school size, plus 75 percent of the 08 difference in the district's ADM adjusted for school size between the 09 base fiscal year and the first fiscal year after the base fiscal year; 10 (ii) for the second fiscal year after the base fiscal year 11 determined under this subparagraph, the school district's ADM adjusted 12 for school size determined under (A) of this paragraph is calculated as 13 the district's ADM adjusted for school size, plus 50 percent of the 14 difference in the district's ADM adjusted for school size between the 15 base fiscal year and the second fiscal year after the base fiscal year; 16 (iii) for the third 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 25 percent of the 20 difference in the district's ADM adjusted for school size between the 21 base fiscal year and the third fiscal year after the base fiscal year; 22 (F) the method established in (E) of this paragraph is available 23 to a school district for the three fiscal years following the base fiscal year 24 determined under (E) of this paragraph only if the district's ADM adjusted for 25 school size determined under (A) of this paragraph for each fiscal year is less 26 than the district's ADM adjusted for school size in the base fiscal year; 27 (G) the method established in (E) of this paragraph does not 28 apply to a decrease in the district's ADM adjusted for school size resulting 29 from a loss of enrollment that occurs as a result of a boundary change under 30 AS 29; 31 (H) notwithstanding (A) - (C) of this paragraph, if one or more
01 schools close and consolidate with one or more other schools in the same 02 community and district and, as a result of the consolidation, basic need 03 generated by the district's ADM of the consolidated schools as adjusted under 04 (A) - (C) of this paragraph decreases, the district may use the last fiscal year 05 before the consolidation as the base fiscal year to offset that decrease for the 06 first four fiscal years following consolidation according to the following 07 method: 08 (i) for the first two fiscal years after the base fiscal year, 09 the district's ADM of the consolidated schools as adjusted under (A) - 10 (C) of this paragraph is calculated by dividing the sum of the district's 11 ADM of the consolidated schools as adjusted under (A) - (C) of this 12 paragraph for the base fiscal year by the sum of the district's ADM of 13 the consolidated schools for the base fiscal year without adjustment, 14 and subtracting the quotient obtained by dividing the district's ADM of 15 the consolidated schools for the current fiscal year as adjusted under 16 (A) - (C) of this paragraph 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 the sum of the district's ADM of the 19 consolidated schools for the current fiscal year without adjustment, and 20 adding that number to the sum of the district's ADM of the consolidated 21 schools for the current fiscal year as adjusted under (A) - (C) of this 22 paragraph; 23 (ii) for the third fiscal year after the base fiscal year, the 24 district's ADM of the consolidated schools as adjusted under (A) - (C) 25 of this paragraph is calculated by dividing the sum of the district's 26 ADM of the consolidated schools as adjusted under (A) - (C) of this 27 paragraph for the base fiscal year by the sum of the district's ADM of 28 the consolidated schools for the base fiscal year without adjustment, 29 and subtracting the quotient obtained by dividing the sum of the 30 district's ADM of the consolidated schools for the current fiscal year as 31 adjusted under (A) - (C) of this paragraph by the sum of the district's
01 ADM of the consolidated schools for the current fiscal year, 02 multiplying that number by the sum of the district's ADM of the 03 consolidated schools for the current fiscal year without adjustment, 04 multiplying that number by 66 percent, and adding that number to the 05 sum of the district's ADM of the consolidated schools for the current 06 fiscal year as adjusted under (A) - (C) of this paragraph; 07 (iii) for the fourth fiscal year 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 sum of the 14 district's ADM of the consolidated schools for the current fiscal year as 15 adjusted under (A) - (C) of this paragraph by the sum of the district's 16 ADM of the consolidated schools for the current fiscal year, 17 multiplying that number by the sum of the district's ADM of the 18 consolidated schools for the current fiscal year without adjustment, 19 multiplying that number by 33 percent, and adding that number to the 20 sum of the district's ADM of the consolidated schools for the current 21 fiscal year as adjusted under (A) - (C) of this paragraph; 22 (iv) to calculate the district's basic need for each fiscal 23 year, the number obtained through the calculation in (i), (ii), or (iii) of 24 this subparagraph is added to the number obtained under (C) of this 25 paragraph for the remainder of the district; 26 (I) if the basic need calculated under (H)(i) - (iii) of this 27 paragraph for one of the first four fiscal years after consolidation is less than 28 the basic need calculated under (A) - (C) of this paragraph for that fiscal year, 29 the basic need may not be adjusted under (H) of this paragraph for that fiscal 30 year; 31 (J) a district may not offset a decrease under (H) of this
01 paragraph if 02 (i) a new facility is constructed in the district for the 03 consolidation; or 04 (ii) the district offset a decrease under (E) of this 05 paragraph in the same fiscal year; 06 (K) a district that offsets a decrease under (H) of this paragraph 07 may not reopen a school that was closed for consolidation in the district until 08 (i) four or more years have passed since the school 09 closure; and 10 (ii) the district provides evidence satisfactory to the 11 department that the schools affected by the consolidation are over 12 capacity; 13 (L) a district may not reopen and reconsolidate a school that 14 was consolidated in the district more than once every four years for purposes 15 of the calculations made under (H) of this paragraph; 16 (M) a district offsetting a decrease under (H) of this paragraph 17 shall provide the department with the list of schools participating in the 18 consolidation and the corresponding ADM; 19 (2) the required local contribution of a city or borough school district is 20 the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 21 personal property in the district as of January 1 of the second preceding fiscal year, as 22 determined by the Department of Commerce, Community, and Economic 23 Development under AS 14.17.510 and AS 29.45.110, [; THE REQUIRED LOCAL 24 CONTRIBUTION MAY] not to exceed [(A)] 45 percent of a district's basic need for 25 the preceding fiscal year as determined under (1) of this subsection [; OR 26 (B) THE AMOUNT OF THE DISTRICT'S REQUIRED 27 LOCAL CONTRIBUTION FOR THE PRECEDING FISCAL YEAR BY 28 MORE THAN FIVE PERCENT]. 29 * Sec. 3. Section 1 of this Act takes effect July 1, 2026. 30 * Sec. 4. Section 2 of this Act takes effect July 1, 2029.