Legislature(1995 - 1996)
1996-06-03 House Journal
Full Journal pdf1996-06-03 House Journal Page 4658 HB 1006 HOUSE BILL NO. 1006 by the House Rules Committee by request of the Governor, entitled: An Act relating to transportation of public school students; relating to school construction grants; relating to state foundation aid and supplementary state aid for education; and providing for an effective date. was read the first time and referred to the Finance Committee. The following fiscal note applies: Fiscal note, Dept. of Education, 6/3/96 The Governor's transmittal letter, dated June 3, 1996, appears below: Dear Speaker Phillips: Under the authority of art.III, sec.18, of the Alaska Constitution, I am transmitting a bill relating to transportation of public school students, school construction grants, state foundation aid, and supplementary state aid for education. It is identical to HCS CSSB 244(FIN) am H, which passed the House but did not receive Senate concurrence before adjournment. This bill is of great financial consequence to the state. Each year Alaska's school districts receive millions of dollars of federal impact aid. Because Alaska maintains a qualifying education funding scheme, it is permitted to reduce state aid to a district by a portion of the district's federal impact aid. For this fiscal year, consideration of district impact aid resulted in a savings to the state of approximately $35million. 1996-06-03 House Journal Page 4659 HB 1006 To qualify for this substantial financial benefit in fiscal year 1998, the state must have no more than a 20 percent disparity between the revenues of our richest and poorest school districts. The test is based on two-year prior data, so we must meet the 20 percent mark in fiscal year1996. Without the changes made by this bill we will fail, and will not be permitted to reduce state aid to districts by considering their federal impact aid. The bill decreases disparity by providing supplemental state aid of $500 per instructional unit to regional educational attendance areas (REAAs), who are unable to levy taxes to increase revenue for their schools. The supplemental funding will not result in a substantial cost to the state because we will increase the state's deduction of federal impact aid from 90 to 96 percent for REAAs. This change will not affect city and borough school districts. The amendments to the foundation formula program are retroactive to July1, 1995, to ensure that we achieve the required 20percent disparity for the current fiscal year. It also contains a hold harmless measure so that no district will receive less foundation aid under this bill than it would have received under existing law. The bill also addresses two other education issues -- one related to pupil transportation and one to school construction grants. This bill represents an important step toward my goal of achieving a foundation formula program that is fair, equitable, and accountable and that protects the partnership between state, federal, and local dollars. I urge your prompt and favorable action on this bill. Sincerely, /s/ Tony Knowles Governor