2021-02-18                     House Journal                      Page 0139
HB 78                                                                                                                         
HOUSE BILL NO. 78 by the House Rules Committee by request of                                                                    
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to funding for correspondence programs; and                                                               
     providing for an effective date."                                                                                          
                                                                                                                                

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was read the first time and referred to the Education and Finance                                                               
Committees.                                                                                                                     
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1. Zero, Dept. of Education & Early Development                                                                                 
2. Fiscal, Dept. of Education & Early Development/Fund                                                                          
 Capitalization                                                                                                                 
                                                                                                                                
The Governor's transmittal letter dated January 28 follows:                                                                     
                                                                                                                                
"Dear Chief Clerk:                                                                                                              
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to state funding for                                                            
correspondence programs operated by school districts.                                                                           
                                                                                                                                
This bill makes changes to the "average daily membership" (ADM)                                                                 
and how it is adjusted in the formula under AS 14.17.410 for funding                                                            
school operational costs. ADM is a defined term under AS                                                                        
14.17.990(1). An ADM is essentially equivalent to one student, as                                                               
measured by fulltime attendance in a 20-day October count period.                                                               
The starting point for calculating basic need in the formula is the                                                             
ADM of each school. That number is subject to adjustment in various                                                             
ways to reflect the cost of education more accurately in different                                                              
places and for different students in the state. After the various                                                               
adjustments in the formula are calculated, the adjusted ADM is then                                                             
multiplied by the base student allocation under AS 14.17.470 (a                                                                 
general reflection of per student cost) to determine basic need.                                                                
Currently, 90 percent of the ADM of correspondence students in a                                                                
district is added to the ADM after various adjustments. This means                                                              
that under current law a district does not receive the full value of an                                                         
ADM for a correspondence student nor the extra funding (the ADM                                                                 
multipliers) for special needs students and secondary vocational and                                                            
technical instruction in a correspondence program.                                                                              
                                                                                                                                
The bill would increase state funding to districts for correspondence                                                           
programs in two ways. First, under AS 14.17.430, the funding                                                                    
eligibility calculation for correspondence programs (including a                                                                
centralized correspondence program, if re-instituted) would be based                                                            

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on the full value of an ADM rather than the current value of 90 percent                                                         
of an ADM. Second, under AS 14.17.410(b)(1)(C), the ADM of                                                                      
correspondence students would be included in the funding formula                                                                
before the multipliers for special needs students and secondary school                                                          
vocational and technical instruction are applied to the ADM of the                                                              
district.                                                                                                                       
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Mike Dunleavy                                                                                                                   
Governor"