Legislature(2025 - 2026)GRUENBERG 120
03/05/2025 08:00 AM House RULES
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| Audio | Topic |
|---|---|
| Start | |
| HB69 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 69 | TELECONFERENCED | |
HB 69-EDUCATION FUNDING: INCREASE BSA
8:35:16 AM
CHAIR STUTES announced that the only order of business would be
HOUSE BILL NO. 69, "An Act relating to education funding; and
providing for an effective date."
[Because of their length, some amendments discussed or adopted
during the meeting are found at the end of the minutes for HB
91. Shorter amendments are included in the main text.]
8:36:05 AM
REPRESENTATIVE REBECCA HIMSCHOOT, Alaska State Legislature, as
prime sponsor, presented HB 69. She relayed a portion of the
sponsor statement [included in full in the committee file],
specifying the information beginning on the second paragraph,
which read as follows [original punctuation provided]:
House Bill 69 addresses Alaska's education funding
crisis by instituting inflation proofing for the
future and increasing the Base Student Allocation
(BSA) by $1,808 per student to account for rising
costs since 2011. During that timeframe, costs rose by
around 39 percent while the BSA increased by only 10
percent. The $1,808 BSA increase in HB 69 will be
spread out over three years:
• $1,000 BSA increase in FY 2026.
• $404 BSA increase in FY 2027.
• $404 BSA increase in FY 2028.
REPRESENTATIVE HIMSCHOOT stated, "The goal of the bill was to
restore funding that has eroded over the years to maintain all
the possible educational opportunities for our students that we
can."
8:37:08 AM
REPRESENTATIVE KOPP moved to adopt the proposed committee
substitute (CS) for HB 69, Version 34-LS0309\O, Marx, 3/4/25, as
a working document.
REPRESENTATIVE EDGMON objected for the purpose of discussion.
8:37:37 AM
REPRESENTATIVE HIMSCHOOT gave explanation of changes [included
in the committee file], which read as follows [original
punctuation provided]:
Title: Section 1 Section 2 Section 3 Section 4 Section
5 Section 6 Section 7 Section 8 Section 9 Added the
following title language to reflect new sections in
the bill: "relating to open enrollment in public
schools; relating to charter schools; relating to an
annual report for correspondence study programs;
relating to the base student allocation; relating to
wireless telecommunications devices in public schools;
establishing the Task Force on Education Funding;
relating to a report on regulation of school
districts;" Added intent language specifying that this
Act shall not be interpreted to permit an education
voucher system, in accordance with Article VI, Section
1 of the Alaska Constitution. Amends AS 14.03.080 (a)
so that a school-age child is entitled to free public
education at their assigned school or a parent-
selected school within district. Makes conforming
changes to sunset the open enrollment provisions after
3 years. Added new subsections to AS 14.03.080 (i),
(j), and (k) for open enrollment that establish that
parents may apply for intra-district transfers, with
lottery-based enrollment and sibling priority.
Districts report data, and denied applications have an
appeal process. Amends AS 14.03.253 (b) to specify
that the State Board of Education must issue a
decision regarding an appeal of the denial of the
charter school application within 45 days instead of
the existing 90-day requirement. Amends AS 14.03.255
(c) to specify that before a local school board
terminates a charter school contract, written notice
and a reasonable opportunity to remedy the issue is
provided. Adds new subsections to AS 14.03.255 (e) and
(f) that specify that a charter school may carry
forward up to 10% of its unreserved budget, with
annual review of the year-end budget by the local
school board. The local school board is directed to
make the contract renewal process as simple as
possible. Amends AS 14.03.260 (a) to increase the
allowable administrative costs that a local school
board can deduct when calculating a charter school's
budget from 4% to 8%. Clarifies AS 14.03.275 to
specify that charter school contracts can be renewed
for successive terms.
Section 10 Section 11 Section 12 Section 13 Section 14
Section 15 Section 16 Section 17 Section 18 Section 19
Section 20 Section 21 Amends AS 14.03.300 to add new
subsections (c) and (d) that specify that school
districts and the department must submit an annual
report on correspondence programs, covering
enrollment, demographics, fund use, assessment scores,
and curriculum reviews, with the department forwarding
reports to the State Board of Education. Amends AS
14.07.168 to require that the report in Section 10 (d)
of the bill be included in State Board of Education's
annual report to the Legislature. Conforming changes
to account for the repeal of the Reads Act. Increases
the BSA $1,000 from $5,960 to $6,960. Adds new Section
of law, AS 14.33.300, to require the department to
create a model policy regulating nonschool-issued
wireless device use in public schools, with exceptions
for medical, translation, emergency, or educational
use. School districts must adopt and share a policy,
which must also have exceptions for medical,
translation, emergency, or educational use. A school
district may adopt the model policy established by the
department or it may adopt its own policy. Defines
"Wireless telecommunications device." Repeals the open
enrollment provisions on July 1, 2028. Adds new
section to uncodified law that establishes a
legislative Task Force on Education Funding to analyze
funding and accountability, make recommendations, and
submit a report by the start of the Second Regular
Session of the 34th Legislature. The Task Force
expires on January 31, 2026. Adds new section to
uncodified law that specifies that the Alaska
Department of Education must submit a report on
recommendations to reduce regulatory and statutory
burdens on school districts by the start of the Second
Regular Session of the 34th Legislature, notifying
legislators once available. Adds applicability
provisions to uncodified law that specify that
sections 5-9 of this Act apply to contracts that are
legally binding on or after the effective date of this
Act. Repeals the open enrollment provisions effective
on July 1, 2028 Conforming changes to account for the
repeal of Reads Act. Provides an effective date of
July 1, 2025, with exceptions for repeal provisions
outlined above.
8:43:34 AM
REPRESENTATIVE HIMSCHOOT, in response to a series of questions
from Representative Vance, first explained the reason for the
proposed 2028 repealer of the Open Enrollment Act is to force
the legislature to consider the issue in a few years to make
sure it remains the best option. She then explained the concept
for the open enrollment, stating that a child has the right to
attend the school in which they are zoned in the larger district
while also having the right to go to a school outside that zone,
if the parent so chooses. She said there would be guardrails on
that, such as "a preference for siblings" that would allow
siblings to both go to a school. A second consideration would
be based on space availability.
REPRESENTATIVE VANCE asked how this would apply to charter
schools.
8:45:12 AM
REPRESENTATIVE EDGMON objected to the line of questioning,
noting that the committee currently was considering whether to
adopt the proposed CS, Version O, not debating the bill.
CHAIR STUTES concurred and asked Representative Vance to hold
her questions until after the CS had been adopted.
8:45:48 AM
REPRESENTATIVE EDGMON removed his objection to the motion to
adopt the committee substitute, Version O, to HB 69. There
being no further objection, Version O was before the committee.
8:46:32 AM
REPRESENTATIVE VANCE moved to adopt Amendment 1 to HB 69,
Version O, labeled 34-LS0309\O.4, Marx, 3/4/25, which read as
follows:
Page 1, line 2, following "programs;":
Insert "relating to school district audits and
budgets;"
Page 6, following line 28:
Insert new bill sections to read:
"* Sec. 13. AS 14.14 is amended by adding a new
section to read:
Sec. 14.14.040. School district budget. Each
school district shall, not later than July 15 of each
year,
(1) submit the district's budget for the
current fiscal year to the department;
(2) publish a certified copy of the budget
prominently on the district's publicly available
Internet website; the budget must be accessible
through a link on the district's Internet website home
page; and
(3) post a certified copy of the budget in
a conspicuous, publicly accessible place at the
principal administrative office of the district.
* Sec. 14. AS 14.14.050(a) is amended to read:
(a) The school board in each school district
shall, before October 1 of each year, provide for an
audit of all school accounts for the school year
ending the preceding June 30. To make the audit the
school board shall contract with a public accountant
who has no personal interest, direct or indirect, in
the fiscal affairs of the district. A [ONE] certified
copy of the audit shall be filed with the commissioner
[AND ONE CERTIFIED COPY SHALL BE POSTED IN A PUBLIC
PLACE AT THE PRINCIPAL ADMINISTRATIVE OFFICE OF THE
DISTRICT].
* Sec. 15. AS 14.14.050(b) is amended to read:
(b) The audit shall conform in form to
requirements established by the commissioner. The
commissioner shall withhold all payments of state
funds after November 15 to a school district that
fails to satisfy the requirements of this section and
AS 14.14.040 [FILE A CERTIFIED COPY OF THE AUDIT WITH
THE DEPARTMENT].
* Sec. 16. AS 14.14.050 is amended by adding a new
subsection to read:
(e) Each school district shall, not later than
November 15 of each year,
(1) publish a certified copy of the audit
prominently on the district's publicly available
Internet website; the audit must be accessible through
a link on the district's Internet website home page;
and
(2) post a certified copy of the audit in a
conspicuous, publicly accessible place at the
principal administrative office of the district."
Renumber the following bill sections accordingly.
Page 9, line 14:
Delete "15"
Insert "19"
Page 9, line 17:
Delete "secs. 19 and 20"
Insert "secs. 23 and 24"
8:46:37 AM
REPRESENTATIVE SCHRAGE and CHAIR STUTES objected.
8:46:50 AM
REPRESENTATIVE VANCE spoke to Amendment 1. She said it would
strengthen public accountability; make financial information
easily accessible; ensure responsible use of state funds;
encourage better fiscal oversight; and support parents and
education advocates. She called it a "simple, common sense
reform" that would require school districts to provide their
budget and audit on their websites annually so that parents and
the public can see the information and have closer engagement.
8:48:00 AM
REPRESENTATIVE KOPP stated that he appreciated the "spirit" of
Amendment 1, but cautioned against creating administrative
delays and recommended making sure that the staff and
administrative support is [available] to provide something that
is already being done, but perhaps in a more stringent manner.
Further, he questioned whether Amendment 1 would "introduce a
redundant process without significantly enhancing financial
transparency or accountability."
8:49:26 AM
REPRESENTATIVE COSTELLO thanked Representative Vance. She
stated that from talking with parents and educators, she
believes that "the transparency of our school budgets is very
challenging and we don't know where the money's going." She
said she thinks Amendment 1 would enhance transparency to
stakeholders in the education system, and she stated that she
would support Amendment 1.
8:50:02 AM
CHAIR STUTES maintained her objection to Amendment 1.
8:50:06 AM
A roll call vote was taken. Representatives Costello, Vance,
and Tilton voted in favor of Amendment 1 to HB 69, Version O.
Representatives Edgmon, Schrage, Kopp, and Stutes voted against
it. Therefore, Amendment 1 failed to be adopted by a vote of 3-
4.
8:50:52 AM
REPRESENTATIVE TILTON moved to adopt Amendment 2 to HB 69,
Version O, labeled 34-LS0309\O.2, Marx, 3/4/25, which read as
follows:
Page 1, line 2:
Delete "an annual report for"
Page 6, following line 28:
Insert a new bill section to read:
"* Sec. 13. AS 14.17.430 is amended to read:
Sec. 14.17.430. State funding for correspondence
study. Except as provided in AS 14.17.400(b), funding
for the state centralized correspondence study program
or a district correspondence program, including a
district that offers a statewide correspondence study
program, includes an allocation from the public
education fund in an amount calculated by using
[MULTIPLYING] the ADM of the correspondence program
reported under AS 14.17.500(a) and 14.17.600(a) [BY 90
PERCENT]."
Renumber the following bill sections accordingly.
Page 9, line 14:
Delete "15"
Insert "16"
Page 9, line 17:
Delete "secs. 19 and 20"
Insert "secs. 20 and 21"
8:50:54 AM
REPRESENTATIVES SCHRAGE and EDGMON objected.
REPRESENTATIVE TILTON spoke to Amendment 2. She said while she
is aware of the economic condition of the State of Alaska, she
also believes that every student has the right "to feel like a
whole student." She explained that Amendment 2 would waive the
multiplier for correspondence students from .9 to 1, to make
them "a whole student."
8:51:30 AM
REPRESENTATIVE EDGMON spoke to his objection. He prefaced his
statement by noting that every amendment the committee would see
would have some level of merit. He stated that by increasing
the base student allocation (BSA), all three components of
schools, whether traditional brick and mortar, charter, or
homeschools, would all get an increase. He pointed out that
Version O has a longer-term component for addressing public
education, as well as a number of components tied to the varied
state of K-12 education. He concluded that while he thinks
Amendment 2 is well-intentioned, he would not be able to support
it.
8:52:22 AM
REPRESENTATIVE COSTELLO spoke in support of Amendment 2. She
said she has always believed that it is unconscionable that the
State of Alaska counts any child in Alaska as "less than one."
8:52:44 AM
REPRESENTATIVE KOPP stated that he firmly believes in school
choice and competition in education; however, neighborhood
schools have fixed costs that many correspondence schools do not
have. He noted that correspondence education costs less to
operate, thus "it has a heavier lift to argue for a complete 1:1
ratio." He mentioned fiscal responsibility and unnecessary
spending and said the legislature needs to question the
[ultimate] total cost. While "1" may be too much, he continued,
perhaps there is a better figure. He allowed that he does not
know the numbers or "how many millions of dollars we're talking
about here." That said, he stated that school choice does not
require equal funding, and it is necessary to consider there is
limited funding for education and to provide "maximum choice
within the constraint of that." He reiterated that every option
does not need to be equal, "especially if it fails to recognize
our brick and mortar facilities." He said he would remain
fiscally conservative in terms of his choice over Amendment 2
but welcomed further discussion on the issue as more information
becomes available.
8:54:18 AM
REPRESENTATIVE VANCE offered a rebuttal to Representative Kopp,
emphasizing that she respectfully "highly" disagrees with his
statements. She recollected that correspondence students make
up almost a quarter of students in Alaska. She stated, "If we
can't even consider them one whole student while we're
considering dramatically increasing the base student allocation
across the board, I think this is putting them at a great
disadvantage." She talked about students having options. She
proffered that increasing the number to 1 from .9 shows respect.
She touched upon the ways in which correspondence schools
relieve obligations of brick and mortar school systems and offer
options to students.
8:56:52 AM
REPRESENTATIVE EDGMON removed his objection.
REPRESENTATIVE SCHRAGE maintained his objection.
8:57:11 AM
A roll call vote was taken. Representatives Costello, Vance,
and Tilton voted in favor of Amendment 2 to HB 69, Version O.
Representatives Schrage, Kopp, Edgmon, and Stutes voted against
it. Therefore, Amendment 2 failed to be adopted by a vote of 3-
4.
8:57:43 AM
REPRESENTATIVE VANCE moved to adopt Amendment 3 to HB 69,
Version O, labeled 34-LS0309\O.5, Marx, 3/4/25. [Amendment 3 is
provided at the end of the minutes on HB 69.]
8:57:47 AM
REPRESENTATIVE SCHRAGE objected.
8:57:55 AM
REPRESENTATIVE VANCE summarized that Amendment 3 would expand
school choice; modify charter school approval; extend suspension
of school bond debt reimbursement until 2030; increase teacher
bonuses; ban most student phone use in school, with few
exceptions; boost reading grants in vocational education
funding; and increase the boarding school stipend.
9:04:49 AM
REPRESENTATIVE EDGMON listed concerns regarding Amendment 3. He
offered his understanding that it would "insert the governor's
bill back into the bill that's before the committee" and "comes
with a price tag of $183 million" in lieu of providing a BSA.
He noted that the legislature has heard from school districts
that more money to the BSA is their overarching, number one
need. He spoke about a working group in which he was involved
and addressing "the need factor" with the commission of the
Department of Education and that there is no data outside the
local school district which quantitatively or qualitatively can
replace that determination. Pointing to the charter school
provision, he offered his understanding that the administration
had let that issue go in terms of pursuing a larger compromise,
and Amendment 3 would bring the focus back to that provision
that had been set aside. Regarding grants, he stated that when
the Alaska State Legislature passed the READS Act back in fall
2022, it was predicated on having 42 reading specialists;
currently there are only 8 in the department. He explained that
this matters because there are grants of $450 per student for
students that show proficiency at certain reading levels. He
expressed concern about the issue of bonuses and trying to
uphold them with a constrained budget. He expressed the
critical nature of schools being able to provide bonuses for
both classified and non-classified employees from the BSA. He
emphasized the importance of "the accountability factor" and
involvement of stakeholders and the public in making policy
decisions. He said the legislature cannot sign a three-year
promissory note for teachers to move to rural Alaska and then
not uphold that funding the next year when the price of oil may
drop. He opined that HB 69 takes a hard look at issues
regarding the state of public education in Alaska, as well as
including the accountability factor. He concluded that for the
reasons stated, he opposed Amendment 3.
9:10:50 AM
REPRESENTATIVE SCHRAGE maintained his objection.
REPRESENTATIVE VANCE clarified that Amendment 3 would increase
the BSA at $300 and reflects the state's current "fiscal
reality." She acknowledged the concerns about funding but
maintained that Amendment 3 would "make it more realistic with
our current funding situation." She noted that the original
proposal was "$1,000 inside the formula," which she said is
"$250 million forever." She characterized the specificity
needed to curate the budget as using a scalpel, and she offered
her understanding that parents want the legislature to step in
with a specificity in funding areas of schools that are most
needed. She said she thinks [Amendment 3] is a great response
to that and considers fiscal responsibility and that the price
of oil will likely continue to decrease. She concurred with the
statement made by Representative Edgmon that the legislature
needs to keep its promises, and she posited that the legislature
needs to be mindful of how it is giving money in response to the
needs that have been presented.
9:13:49 AM
A roll call vote was taken. Representatives Vance, Tilton, and
Costello voted in favor of Amendment 3 to HB 69, Version O.
Representatives Schrage, Kopp, Edgmon, and Stutes voted against
it. Therefore, Amendment 3 failed to be adopted by a vote of 3-
4.
9:14:23 AM
REPRESENTATIVE COSTELLO moved to adopt Amendment 4 to HB 69,
Version O, labeled 34-LS0309\O.3, Marx, 3/4/25, which read as
follows:
Page 1, line 3, following "allocation;":
Insert "relating to reading proficiency incentive
grants;"
Page 6, following line 31:
Insert new bill sections to read:
"* Sec. 14. AS 14.30 is amended by adding a new
section to read:
Sec. 14.30.773. Reading proficiency incentive
grants. (a) Subject to appropriation, a school
district is eligible to receive a reading proficiency
incentive grant of $450 for each student in
(1) kindergarten through grade three who
performs at grade level or demonstrates improvement on
expected grade-level skills on the statewide screening
tool adopted by the department under AS 14.30.760; and
(2) grades four through six who performs at
grade level or demonstrates a measure of increased
proficiency on a standards-based assessment in
language arts.
(b) The department shall adopt regulations to
implement this section.
* Sec. 15. AS 14.30.773(a), enacted by sec. 14 of
this Act, is amended to read:
(a) Subject to appropriation, a school district
is eligible to receive a reading proficiency incentive
grant of $450 for each student in
[(1)] kindergarten through grade [THREE WHO
PERFORMS AT GRADE LEVEL OR DEMONSTRATES IMPROVEMENT ON
EXPECTED GRADE-LEVEL SKILLS ON THE STATEWIDE SCREENING
TOOL ADOPTED BY THE DEPARTMENT UNDER AS 14.30.760; AND
(2) GRADES FOUR THROUGH] six who performs
at grade level or demonstrates a measure of increased
proficiency on a standards-based assessment in
language arts."
Renumber the following bill sections accordingly.
Page 9, line 14:
Delete "15"
Insert "17"
Page 9, following line 16:
Insert a new bill section to read:
"* Sec. 23. Section 15 of this Act takes effect
June 30, 2034."
Renumber the following bill section accordingly.
Page 9, line 17:
Delete "secs. 19 and 20"
Insert "secs. 21 - 23"
REPRESENTATIVE SCHRAGE objected.
REPRESENTATIVE COSTELLO spoke to Amendment 4. She said it would
address the Alaska READS Act by allowing $450 per child for
grades K-3, as well as extending that to sixth grade. She noted
that the Act was a bi-partisan effort and that the governor
stated its efficacy.
9:15:35 AM
REPRESENTATIVE EDGMON stated that while well-intentioned, he
could not support Amendment 4 because of the schools that would
not be able to qualify for the money. He noted that when the
Act was passed in 2022, it came with a $30 BSA increase, which
meant approximately $7 million, with about 65 percent of that
going to the top five schools in the state, and it did not come
with the appropriate funding. He noted that last year the
legislature approved money for the READS Act, which the governor
vetoed. He mentioned House Bill 114, passed during the Thirty-
Third Alaska State Legislature, which planned for reading
specialists around the state, and he reiterated there is a
paucity of reading specialists currently. He said many rural
districts are struggling to meet the requirements of the READS
Act without the necessary resources to do so, and he opined that
Amendment 4 is not the means to providing those resources.
9:17:55 AM
REPRESENTATIVE KOPP related that he supports "the spirit" of
Amendment 4 and the critical aspect of reading by grade three.
He talked about equity in schools. He said he is likely to
support READS Act funding but would like to talk to
[Representative Costello] about getting a commitment in the
budget process for reading specialists in schools. He stated
that at this time he would not support Amendment 4.
9:18:50 AM
REPRESENTATIVE TILTON expressed her support for Amendment 4.
She said she thinks everyone wants the best education possible
for students in Alaska. She offered her understanding that the
Matanuska-Susitna ("Mat-Su") Borough has had "success using this
program."
9:19:45 AM
CHAIR STUTES commented that she appreciates that Representative
Costello brought forward Amendment 4. She stated that she
agrees with Representative Edgmon regarding rural schools and
lack of availability therein. She said she has been a supporter
of the READS Act since it was passed but thinks it needs some
"fine tuning."
9:20:34 AM
REPRESENTATIVE COSTELLO, in wrap-up, stated that "students that
are not able to read are not set up for success in life." They
suffer throughout their educational career. She stated, "It is
disappointing that we are moving forward without this program."
9:21:19 AM
REPRESENTATIVE SCHRAGE maintained his objection.
9:21:24 AM
A roll call vote was initiated and interrupted [subsequently
voided].
9:21:44 AM
The committee took a brief at-ease at 9:21 a.m.
9:22:23 AM
CHAIR STUTES announced that the previous roll was voided.
9:22:27 AM
A roll call vote was taken. Representatives Tilton, Kopp,
Costello, and Vance voted in favor of the motion to adopt
Amendment 4 to HB 69, Version O. Representatives Schrage,
Edgmon, and Stutes voted against it. Therefore, Amendment 4 was
adopted by a vote of 4-3.
9:23:13 AM
REPRESENTATIVE COSTELLO noted that Section 13 of Version O, HB
69, as amended, would reduce the BSA to $1,000. She asked the
bill sponsor to explain the rationale behind that as well as the
funding source.
9:23:39 AM
REPRESENTATIVE HIMSCHOOT explained that "in good faith
compromise," she brought the number down to $1,000 from $1,808.
She noted that when districts were at their peak performance,
they were also at their peak funding. The $1,808 would have
restored that funding over a period of three years; however, she
added that technically it would not have restored that funding
without inflation-proofing. She summarized that bringing the
number down to $1,000 in the BSA as opposed to the $1,000 with
"the escalators" was an attempt to compromise. In terms of
funding, she said that is something that the legislature will
have to figure out. She suggested there are a lot of ways to do
so and reminded the committee that school districts cannot raise
revenue. While the legislature has a budget that is wide-
ranging, school districts have a budget that is made up of 80-85
percent personnel. The significance, she explained, is that
when school districts make cuts, they are cutting opportunities
for students.
9:25:41 AM
REPRESENTATIVE TILTON asked what the thought process was behind
the makeup of the membership of the aforementioned taskforce.
REPRESENTATIVE HIMSCHOOT answered that the purpose of the
taskforce was to explore how the state funds its schools by
considering adequacy, district cost factors, inflation proofing,
energy costs - things that are beyond the scope of one bill - to
then come back to the legislature with recommendations. She
mentioned getting expert advise to determine whether a formula
is performing and whether the funding is adequate.
REPRESENTATIVE TILTON asked why the task force makeup included
just one minority Representative.
9:28:10 AM
REPRESENTATIVE EDGMON explained that that is the standard format
for putting together a task force.
REPRESENTATIVE HIMSCHOOT noted that the requirement is "at least
one member of the minority," so the chairs of both bodies can
look at "who best can fill those seats."
9:29:28 AM
REPRESENTATIVE KOPP moved to report CSHB 69, Version 34-
LS0309\O, Marx, 3/4/25, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
9:29:52 AM
REPRESENTATIVES VANCE and TILTON objected.
REPRESENTATIVE VANCE stated that while she is excited that
[Amendment 4] was adopted to include reading proficiency, she
has many concerns. She question the reasoning behind a new
education task force when there are education committees in both
bodies. She talked about districts retaining up to 8 percent of
their budgets instead of 4 percent and the cap of the carry-
forward at 10 percent of unreserved year-end funds, and she said
she thinks that will have an impact on charter schools. She
said she wants to see charter schools succeed. She expressed an
issue with the open enrollment under the proposed legislation,
stating that she feels it will not make positive changes. She
noted that it would be repealed in 2028. She emphasized
particular concern with how the state would afford the "$1,000
inside the formula BSA increase" that is a quarter of a million
dollars that automatically would be added to the budget every
year with an unknown future revenue stream. She said she wants
to increase funding to education with reforms but thinks "we are
biting off more than we can chew in this committee substitute."
9:32:05 AM
REPRESENTATIVE TILTON stated that she aligns herself with many
of the comments that were stated by Representative Vance. She
emphasized that every student in Alaska should be considered a
whole student and get the best education available.
9:32:52 AM
REPRESENTATIVE COSTELLO commented that she thinks education is
one of the most important issues addressed by the legislature
and said she has enjoyed time in the classroom as a teacher.
She expressed disappointment that once the negotiations were
started, the minority was left out of the process. She said she
looks forward to [the minority] voice being heard during the
amendment process on the House floor.
9:33:34 AM
REPRESENTATIVE KOPP rebutted that the negotiation process was
hosted by the governor; therefore, if anyone has a complaint
about who was invited or not, that would be the person to
address. He stated that "progress is real and inspiring," and
though it is "fragile and incomplete," the legislature is moving
forward. He said it is not an easy feat to get 61 people to
agree on one thing. He expressed confidence that "education is
going to improve in Alaska."
9:34:18 AM
REPRESENTATIVE VANCE maintained her objection.
9:34:27 AM
A roll call vote was taken. Representatives Schrage, Kopp,
Edgmon, Costello, and Stutes voted in favor of the motion to
report CSHB 69, Version 34-LS0309\O, Marx, 3/4/25, as amended,
out of committee with individual recommendations and the
accompanying fiscal notes. Representatives Vance and Tilton
voted against it. Therefore, CSHB 69(RLS) was reported out of
the House Rules Standing Committee by a vote of 5-2.
AMENDMENTS
The following amendment to the proposed committee substitute
(CS) for HB 69, Version 34-LS0309\O, Marx, 3/4/25 was moved for
adoption during the hearing. [Shorter amendments are provided
in the main text only.]
Amendment 3 [34-LS0309\O.5, Marx, 3/4/25] (failed):
Page 1, lines 2 - 4:
Delete "relating to an annual report for
correspondence study programs; relating to the base
student allocation; relating to wireless
telecommunications devices in public schools;
establishing the Task Force on Education Funding;"
Insert "relating to transportation of students;
relating to school bond debt reimbursement; relating
to state boarding schools; relating to correspondence
study programs; relating to vocational and technical
education; relating to the base student allocation;
relating to reading proficiency incentive grants;
relating to mobile communication devices in schools;
relating to teacher retention and recruitment
incentives; relating to a report relating to public
education;"
Page 1, lines 7 - 11:
Delete all material.
Page 1, line 12:
Delete "Sec. 2"
Insert "Section 1"
Renumber the following bill sections accordingly.
Page 2, line 7, through page 3, line 10:
Delete all material and insert:
"* Sec. 2. AS 14.03.080 is amended by adding new
subsections to read:
(i) Each school district shall, upon application
by a parent of a child of school age and subject to
AS 14.14.110, 14.14.120, and the enrollment capacity
limitations of a selected school, allow the child to
attend the school in the district selected by the
parent instead of the school that is assigned to the
child based on the child's residence within another
school's or school district's boundary area. The
district shall approve enrollment applications
throughout the school year and in the order the
district receives the applications, except that the
district shall prioritize the enrollment of siblings
in the same school. Each district shall annually
report to the department and publish on the district's
publicly available Internet website student enrollment
data for each school in the district, including
enrollment capacity and vacancies for each grade in
the school, the number of enrollment applications the
district received, the number of those applications
the district approved, the number of those
applications the district denied, and an explanation
of the reason for each denial.
(j) The department shall establish by regulation
(1) a student transportation plan for
children whose enrollment applications are approved
under (i) of this section; and
(2) a process for appealing a school
district's denial of an enrollment application.
(k) Nothing in (i) of this section applies to a
correspondence study program provided under
AS 14.03.300.
* Sec. 3. AS 14.03.250(d) is amended to read:
(d) If a local school board or a delegated
agency denies an application for a charter school, the
applicant may appeal the denial to the commissioner.
The appeal to the commissioner shall be filed not
later than 60 days after the local school board or the
delegated agency issues its written decision of
denial. The commissioner shall review the local school
board's or the delegated agency's decision to
determine whether the findings of fact are supported
by substantial evidence and whether the decision is
contrary to law. A decision of the commissioner
upholding the denial by the local school board or the
delegated agency may be appealed within 30 days to the
state Board of Education and Early Development.
* Sec. 4. AS 14.03.253 is amended to read:
Sec. 14.03.253. Charter school application
appeal. (a) In an appeal to the commissioner under
AS 14.03.250, the commissioner shall review the record
before the local school board or the delegated agency.
The commissioner may request written supplementation
of the record from the applicant, [OR] the local
school board, or the delegated agency. The
commissioner may
(1) remand the appeal to the local school
board or the delegated agency for further review;
(2) approve the charter school application
and forward the application to the state Board of
Education and Early Development with or without added
conditions; or
(3) uphold the decision denying the charter
school application; if the commissioner upholds a
local school board's or a delegated agency's decision
to deny a charter school application and the applicant
appeals to the State Board of Education and Early
Development, the commissioner shall immediately
forward the application and record to the state Board
of Education and Early Development.
(b) In an appeal to the state Board of Education
and Early Development of a denial of a charter school
application under (a)(3) of this section, the state
board shall determine, based on the record, whether
the commissioner's findings are supported by
substantial evidence and whether the decision is
contrary to law. The state board shall issue a written
decision within 45 [90] days after the state board
receives an appeal.
* Sec. 5. AS 14.03 is amended by adding a new
section to read:
Sec. 14.03.254. Board-authorized charter schools.
(a) The state Board of Education and Early Development
may authorize the establishment of a charter school in
any school district in the state. The state board
shall prescribe by regulation an application procedure
for the establishment of a charter school under this
section.
(b) The state board shall issue a written
decision approving or denying an application for a
charter school within 90 days after the state board
receives the application. If the state board approves
the application, the local school board of the school
district in which the state board authorized the
establishment of the charter school shall operate the
charter school as provided in AS 14.03.255 -
14.03.290.
(c) The state Board of Education and Early
Development may delegate the state board's authority
to approve or deny an application for a charter school
to a committee of the state board, a political
subdivision of the state, the University of Alaska, or
other state agency."
Renumber the following bill sections accordingly.
Page 4, line 8, through page 6, line 28:
Delete all material and insert:
"* Sec. 7. AS 14.09.010(a) is repealed and
reenacted to read:
(a) A school district that provides student
transportation services for the transportation of
students who reside a distance from established
schools is eligible to receive funding for operating
or subcontracting the operation of the transportation
system for students to and from the schools within the
student's transportation service area. Subject to
appropriation, the amount of funding provided by the
state for operating the student transportation system
is the amount of a school district's ADM, less the ADM
for the district's correspondence programs during the
current fiscal year, multiplied by the per student
amount for the school district as follows, for the
school years beginning July 1, 2025:
DISTRICT PER
STUDENT AMOUNT
Alaska Gateway
$2,790
Aleutians East
416
Anchorage
584
Annette Island
244
Bering Strait
66
Bristol Bay
3,583
Chatham
376
Copper River
2,127
Cordova
450
Craig
567
Delta/Greely
2,221
Denali
2,423
Dillingham
1,632
Fairbanks
1,095
Galena
341
Haines
839
Hoonah
400
Iditarod
284
Juneau
809
Kake
364
Kashunamiut
7
Kenai Peninsula
1,227
Ketchikan
975
Klawock
783
Kodiak Island
1,071
Kuspuk
877
Lake and Peninsula
515
Lower Kuskokwim
372
Lower Yukon
1
Matanuska-Susitna
1,220
Nenana
788
Nome
833
North Slope
1,502
Northwest Arctic
33
Pelican
97
Petersburg
503
Saint Mary's
259
Sitka
574
Skagway
48
Southeast Island
1,549
Southwest Region
801
Unalaska
869
Valdez
987
Wrangell
939
Yakutat
998
Yukon Flats
354
Yukon/Koyukuk
419
Yupiit
2.
* Sec. 8. AS 14.11.014(d) is amended to read:
(d) Notwithstanding any other provision of law,
the committee may not recommend for approval an
application for bond debt reimbursement made by a
municipality for school construction or major
maintenance for indebtedness authorized by the
qualified voters of the municipality on or after
January 1, 2015, but before July 1, 2030 [2025].
* Sec. 9. AS 14.11.100(a) is amended to read:
(a) During each fiscal year, the state shall
allocate to a municipality that is a school district
the following sums:
(1) payments made by the municipality
during the fiscal year two years earlier for the
retirement of principal and interest on outstanding
bonds, notes, or other indebtedness incurred before
July 1, 1977, to pay costs of school construction;
(2) 90 percent of
(A) payments made by the municipality
during the fiscal year two years earlier for the
retirement of principal and interest on outstanding
bonds, notes, or other indebtedness incurred after
June 30, 1977, and before July 1, 1978, to pay costs
of school construction;
(B) cash payments made after June 30, 1976,
and before July 1, 1978, by the municipality during
the fiscal year two years earlier to pay costs of
school construction;
(3) 90 percent of
(A) payments made by the municipality
during the fiscal year two years earlier for the
retirement of principal and interest on outstanding
bonds, notes, or other indebtedness incurred after
June 30, 1978, and before January 1, 1982, to pay
costs of school construction projects approved under
AS 14.07.020(a)(11);
(B) cash payments made after June 30, 1978,
and before July 1, 1982, by the municipality during
the fiscal year two years earlier to pay costs of
school construction projects approved under
AS 14.07.020(a)(11);
(4) subject to (h) and (i) of this section,
up to 90 percent of
(A) payments made by the municipality
during the current fiscal year for the retirement of
principal and interest on outstanding bonds, notes, or
other indebtedness incurred after December 31, 1981,
and authorized by the qualified voters of the
municipality before July 1, 1983, to pay costs of
school construction, additions to schools, and major
rehabilitation projects that exceed $25,000 and are
approved under AS 14.07.020(a)(11);
(B) cash payments made after June 30, 1982,
and before July 1, 1983, by the municipality during
the fiscal year two years earlier to pay costs of
school construction, additions to schools, and major
rehabilitation projects that exceed $25,000 and are
approved under AS 14.07.020(a)(11); and
(C) payments made by the municipality
during the current fiscal year for the retirement of
principal and interest on outstanding bonds, notes, or
other indebtedness to pay costs of school
construction, additions to schools, and major
rehabilitation projects that exceed $25,000 and are
submitted to the department for approval under
AS 14.07.020(a)(11) before July 1, 1983, and approved
by the qualified voters of the municipality before
October 15, 1983, not to exceed a total project cost
of (i) $6,600,000 if the annual growth rate of average
daily membership of the municipality is more than
seven percent but less than 12 percent, or (ii)
$20,000,000 if the annual growth rate of average daily
membership of the municipality is 12 percent or more;
payments made by a municipality under this
subparagraph on total project costs that exceed the
amounts set out in (i) and (ii) of this subparagraph
are subject to (5)(A) of this subsection;
(5) subject to (h) - (j) of this section,
80 percent of
(A) payments made by the municipality
during the fiscal year for the retirement of principal
and interest on outstanding bonds, notes, or other
indebtedness authorized by the qualified voters of the
municipality
(i) after June 30, 1983, but before
March 31, 1990, to pay costs of school construction,
additions to schools, and major rehabilitation
projects that exceed $25,000 and are approved under
AS 14.07.020(a)(11); or
(ii) before July 1, 1989, and reauthorized
before November 1, 1989, to pay costs of school
construction, additions to schools, and major
rehabilitation projects that exceed $25,000 and are
approved under AS 14.07.020(a)(11); and
(B) cash payments made after June 30, 1983,
by the municipality during the fiscal year two years
earlier to pay costs of school construction, additions
to schools, and major rehabilitation projects that
exceed $25,000 and are approved by the department
before July 1, 1990, under AS 14.07.020(a)(11);
(6) subject to (h) - (j) and (m) of this
section, 70 percent of payments made by the
municipality during the fiscal year for the retirement
of principal and interest on outstanding bonds, notes,
or other indebtedness authorized by the qualified
voters of the municipality on or after April 30, 1993,
but before July 1, 1996, to pay costs of school
construction, additions to schools, and major
rehabilitation projects that exceed $200,000 and are
approved under AS 14.07.020(a)(11);
(7) subject to (h) - (j) and (m) of this
section, 70 percent of payments made by the
municipality during the fiscal year for the retirement
of principal and interest on outstanding bonds, notes,
or other indebtedness authorized by the qualified
voters of the municipality after March 31, 1990, but
before April 30, 1993, to pay costs of school
construction, additions to schools, and major
rehabilitation projects;
(8) subject to (h), (i), (j)(2) - (5), and
(n) of this section and after projects funded by the
bonds, notes, or other indebtedness have been approved
by the commissioner, 70 percent of payments made by
the municipality during the fiscal year for the
retirement of principal and interest on outstanding
bonds, notes, or other indebtedness authorized by the
qualified voters of the municipality on or after
July 1, 1995, but before July 1, 1998, to pay costs of
school construction, additions to schools, and major
rehabilitation projects that exceed $200,000 and are
approved under AS 14.07.020(a)(11);
(9) subject to (h), (i), (j)(2) - (5), and
(n) of this section and after projects funded by the
bonds, notes, or other indebtedness have been approved
by the commissioner, 70 percent of payments made by
the municipality during the fiscal year for the
retirement of principal and interest on outstanding
bonds, notes, or other indebtedness authorized by the
qualified voters of the municipality on or after
July 1, 1998, but before July 1, 2006, to pay costs of
school construction, additions to schools, and major
rehabilitation projects that exceed $200,000 and are
approved under AS 14.07.020(a)(11);
(10) subject to (h), (i), (j)(2) - (5), and
(o) of this section, and after projects funded by the
bonds, notes, or other indebtedness have been approved
by the commissioner, 70 percent of payments made by
the municipality during the fiscal year for the
retirement of principal and interest on outstanding
bonds, notes, or other indebtedness authorized by the
qualified voters of the municipality on or after
June 30, 1998, to pay costs of school construction,
additions to schools, and major rehabilitation
projects that exceed $200,000, are approved under
AS 14.07.020(a)(11), and are not reimbursed under (n)
of this section;
(11) subject to (h), (i), and (j)(2) - (5)
of this section, and after projects funded by the
bonds, notes, or other indebtedness have been approved
by the commissioner, 70 percent of payments made by a
municipality during the fiscal year for the retirement
of principal and interest on outstanding bonds, notes,
or other indebtedness authorized by the qualified
voters of the municipality on or after June 30, 1999,
but before January 1, 2005, to pay costs of school
construction, additions to schools, and major
rehabilitation projects and education-related
facilities that exceed $200,000, are approved under
AS 14.07.020(a)(11), and are not reimbursed under (n)
or (o) of this section;
(12) subject to (h), (i), and (j)(2), (3),
and (5) of this section, 60 percent of payments made
by a municipality during the fiscal year for the
retirement of principal and interest on outstanding
bonds, notes, or other indebtedness authorized by the
qualified voters of the municipality on or after
June 30, 1999, but before January 1, 2005, to pay
costs of school construction, additions to schools,
and major rehabilitation projects and education-
related facilities that exceed $200,000, are reviewed
under AS 14.07.020(a)(11), and are not reimbursed
under (n) or (o) of this section;
(13) subject to (h), (i), (j)(2) - (5), and
(p) of this section, and after projects funded by the
tax exempt bonds, notes, or other indebtedness have
been approved by the commissioner, 70 percent of
payments made by a municipality during the fiscal year
for the retirement of principal and interest on
outstanding tax exempt bonds, notes, or other
indebtedness authorized by the qualified voters of the
municipality on or after June 30, 1999, but before
October 31, 2006, to pay costs of school construction,
additions to schools, and major rehabilitation
projects and education-related facilities that exceed
$200,000, are approved under AS 14.07.020(a)(11), and
are not reimbursed under (n) or (o) of this section;
(14) subject to (h), (i), (j)(2), (3), and
(5), and (p) of this section, 60 percent of payments
made by a municipality during the fiscal year for the
retirement of principal and interest on outstanding
tax exempt bonds, notes, or other indebtedness
authorized by the qualified voters of the municipality
on or after June 30, 1999, but before October 31,
2006, to pay costs of school construction, additions
to schools, and major rehabilitation projects and
education-related facilities that exceed $200,000, are
reviewed under AS 14.07.020(a)(11), and are not
reimbursed under (n) or (o) of this section;
(15) subject to (h), (i), (j)(2) - (5), and
(q) of this section, and after projects funded by the
bonds, notes, or other indebtedness have been approved
by the commissioner, 90 percent of payments made by a
municipality during the fiscal year for the retirement
of principal and interest on outstanding bonds, notes,
or other indebtedness authorized by the qualified
voters of the municipality on or after June 30, 1999,
but before October 31, 2006, to pay costs of school
construction, additions to schools, and major
rehabilitation projects and education-related
facilities that exceed $200,000, are approved under
AS 14.07.020(a)(11), meet the 10 percent participating
share requirement for a municipal school district
under the former participating share amounts required
under AS 14.11.008(b), and are not reimbursed under
(n) or (o) of this section;
(16) subject to (h), (i), and (j)(2) - (5)
of this section, and after projects funded by the tax
exempt bonds, notes, or other indebtedness have been
approved by the commissioner, 70 percent of payments
made by a municipality during the fiscal year for the
retirement of principal and interest on outstanding
tax exempt bonds, notes, or other indebtedness
authorized by the qualified voters of the municipality
on or after October 1, 2006, but before January 1,
2015, to pay costs of school construction, additions
to schools, and major rehabilitation projects and
education- related facilities that exceed $200,000,
are approved under AS 14.07.020(a)(11), and are not
reimbursed under (o) of this section;
(17) subject to (h), (i), and (j)(2), (3),
and (5) of this section, 60 percent of payments made
by a municipality during the fiscal year for the
retirement of principal and interest on outstanding
tax exempt bonds, notes, or other indebtedness
authorized by the qualified voters of the municipality
on or after October 1, 2006, but before January 1,
2015, to pay costs of school construction, additions
to schools, and major rehabilitation projects and
education-related facilities that exceed $200,000, are
reviewed under AS 14.07.020(a)(11), and are not
reimbursed under (o) of this section;
(18) subject to (h), (i), and (j)(2) - (5)
of this section, and after projects funded by the tax
exempt bonds, notes, or other indebtedness have been
approved by the commissioner, 50 percent of payments
made by a municipality during the fiscal year for the
retirement of principal of and interest on outstanding
tax exempt bonds, notes, or other indebtedness
authorized by the qualified voters of the municipality
on or after July 1, 2030 [2025], to pay costs of
school construction, additions to schools, and major
rehabilitation projects and education-related
facilities that exceed $200,000, are approved under
AS 14.07.020(a)(11), and are not reimbursed under (o)
of this section;
(19) subject to (h), (i), and (j)(2), (3),
and (5) of this section, 40 percent of payments made
by a municipality during the fiscal year for the
retirement of principal of and interest on outstanding
tax exempt bonds, notes, or other indebtedness
authorized by the qualified voters of the municipality
on or after July 1, 2030 [2025], to pay costs of
school construction, additions to schools, and major
rehabilitation projects and education-related
facilities that exceed $200,000, are reviewed under
AS 14.07.020(a)(11), and are not reimbursed under (o)
of this section.
* Sec. 10. AS 14.11.100(s) is amended to read:
(s) Notwithstanding any other provision of law,
the commissioner may not approve an application for
bond debt reimbursement made by a municipality for
school construction or major maintenance for
indebtedness authorized by the qualified voters of the
municipality on or after January 1, 2015, but before
July 1, 2030 [2025].
* Sec. 11. AS 14.11.102(c) is amended to read:
(c) The commissioner may not allocate funds to a
municipality under AS 14.11.100 for the retirement of
the principal of and interest on outstanding tax-
exempt bonds, notes, or other indebtedness authorized
by the qualified voters of the municipality on or
after January 1, 2015, but before July 1, 2030 [2025].
* Sec. 12. AS 14.16.200(b) is amended to read:
(b) Costs that may be claimed by a district for
reimbursement under (a) of this section are
(1) one round trip on the least expensive
means of transportation between the student's
community of residence and the school during the
school year if the district expends money for the
trip; and
(2) a per-pupil monthly stipend to cover
room and board expenses as determined by the
department on a regional basis and not to exceed the
following amounts:
(A) for the Southeast Region (Region I),
$1,845 [$1,230];
(B) for the Southcentral Region (Region
II), $1,800 [$1,200];
(C) for the Interior Region (Region III),
$2,178 [$1,452];
(D) for the Southwest Region (Region IV),
$2,264 [$1,509];
(E) for the Northern Remote Region (Region
V), $2,664 [$1,776].
* Sec. 13. AS 14.17.410(b) is amended to read:
(b) Public school funding consists of state aid,
a required local contribution, and eligible federal
impact aid determined as follows:
(1) state aid equals basic need minus a
required local contribution and 90 percent of eligible
federal impact aid for that fiscal year; basic need
equals the sum obtained under (D) of this paragraph,
multiplied by the base student allocation set out in
AS 14.17.470; district adjusted ADM is calculated as
follows:
(A) the ADM of each school in the district
is calculated by applying the school size factor to
the student count as set out in AS 14.17.450;
(B) the number obtained under (A) of this
paragraph is multiplied by the district cost factor
described in AS 14.17.460;
(C) the ADMs of each school in a district,
as adjusted according to (A) and (B) of this
paragraph, are added to the number obtained for
correspondence study under AS 14.17.430; the sum is
then multiplied by the special needs factor set out in
AS 14.17.420(a)(1) and the secondary school vocational
and technical instruction funding factor set out in
AS 14.17.420(a)(3);
(D) the number obtained for intensive
services under AS 14.17.420(a)(2) is [AND THE NUMBER
OBTAINED FOR CORRESPONDENCE STUDY UNDER AS 14.17.430
ARE] added to the number obtained under (C) of this
paragraph or under (H) and (I) of this paragraph;
(E) notwithstanding (A) - (C) of this
paragraph, if a school district's ADM adjusted for
school size under (A) of this paragraph decreases by
five percent or more from one fiscal year to the next
fiscal year, the school district may use the last
fiscal year before the decrease as a base fiscal year
to offset the decrease, according to the following
method:
(i) for the first fiscal year after the
base fiscal year determined under this subparagraph,
the school district's ADM adjusted for school size
determined under (A) of this paragraph is calculated
as the district's ADM adjusted for school size, plus
75 percent of the difference in the district's ADM
adjusted for school size between the base fiscal year
and the first fiscal year after the base fiscal year;
(ii) for the second fiscal year after the
base fiscal year determined under this subparagraph,
the school district's ADM adjusted for school size
determined under (A) of this paragraph is calculated
as the district's ADM adjusted for school size, plus
50 percent of the difference in the district's ADM
adjusted for school size between the base fiscal year
and the second fiscal year after the base fiscal year;
(iii) for the third fiscal year after the
base fiscal year determined under this subparagraph,
the school district's ADM adjusted for school size
determined under (A) of this paragraph is calculated
as the district's ADM adjusted for school size, plus
25 percent of the difference in the district's ADM
adjusted for school size between the base fiscal year
and the third fiscal year after the base fiscal year;
(F) the method established in (E) of this
paragraph is available to a school district for the
three fiscal years following the base fiscal year
determined under (E) of this paragraph only if the
district's ADM adjusted for school size determined
under (A) of this paragraph for each fiscal year is
less than the district's ADM adjusted for school size
in the base fiscal year;
(G) the method established in (E) of this
paragraph does not apply to a decrease in the
district's ADM adjusted for school size resulting from
a loss of enrollment that occurs as a result of a
boundary change under AS 29;
(H) notwithstanding (A) - (C) of this
paragraph, if one or more schools close and
consolidate with one or more other schools in the same
community and district and, as a result of the
consolidation, basic need generated by the district's
ADM of the consolidated schools as adjusted under (A)
- (C) of this paragraph decreases, the district may
use the last fiscal year before the consolidation as
the base fiscal year to offset that decrease for the
first four fiscal years following consolidation
according to the following method:
(i) for the first two fiscal years after
the base fiscal year, the district's ADM of the
consolidated schools as adjusted under (A) - (C) of
this paragraph is calculated by dividing the sum of
the district's ADM of the consolidated schools as
adjusted under (A) - (C) of this paragraph for the
base fiscal year by the sum of the district's ADM of
the consolidated schools for the base fiscal year
without adjustment, and subtracting the quotient
obtained by dividing the district's ADM of the
consolidated schools for the current fiscal year as
adjusted under (A) - (C) of this paragraph by the sum
of the district's ADM of the consolidated schools for
the current fiscal year without adjustment,
multiplying that number by the sum of the district's
ADM of the consolidated schools for the current fiscal
year without adjustment, and adding that number to the
sum of the district's ADM of the consolidated schools
for the current fiscal year as adjusted under (A) -
(C) of this paragraph;
(ii) for the third fiscal year after the
base fiscal year, the district's ADM of the
consolidated schools as adjusted under (A) - (C) of
this paragraph is calculated by dividing the sum of
the district's ADM of the consolidated schools as
adjusted under (A) - (C) of this paragraph for the
base fiscal year by the sum of the district's ADM of
the consolidated schools for the base fiscal year
without adjustment, and subtracting the quotient
obtained by dividing the sum of the district's ADM of
the consolidated schools for the current fiscal year
as adjusted under (A) - (C) of this paragraph by the
sum of the district's ADM of the consolidated schools
for the current fiscal year, multiplying that number
by the sum of the district's ADM of the consolidated
schools for the current fiscal year without
adjustment, multiplying that number by 66 percent, and
adding that number to the sum of the district's ADM of
the consolidated schools for the current fiscal year
as adjusted under (A) - (C) of this paragraph;
(iii) for the fourth fiscal year after the
base fiscal year, the district's ADM of the
consolidated schools as adjusted under (A) - (C) of
this paragraph is calculated by dividing the sum of
the district's ADM of the consolidated schools as
adjusted under (A) - (C) of this paragraph for the
base fiscal year by the sum of the district's ADM of
the consolidated schools for the base fiscal year
without adjustment, and subtracting the quotient
obtained by dividing the sum of the district's ADM of
the consolidated schools for the current fiscal year
as adjusted under (A) - (C) of this paragraph by the
sum of the district's ADM of the consolidated schools
for the current fiscal year, multiplying that number
by the sum of the district's ADM of the consolidated
schools for the current fiscal year without
adjustment, multiplying that number by 33 percent, and
adding that number to the sum of the district's ADM of
the consolidated schools for the current fiscal year
as adjusted under (A) - (C) of this paragraph;
(iv) to calculate the district's basic need
for each fiscal year, the number obtained through the
calculation in (i), (ii), or (iii) of this
subparagraph is added to the number obtained under (C)
of this paragraph for the remainder of the district;
(I) if the basic need calculated under
(H)(i) - (iii) of this paragraph for one of the first
four fiscal years after consolidation is less than the
basic need calculated under (A) - (C) of this
paragraph for that fiscal year, the basic need may not
be adjusted under (H) of this paragraph for that
fiscal year;
(J) a district may not offset a decrease
under (H) of this paragraph if
(i) a new facility is constructed in the
district for the consolidation; or
(ii) the district offset a decrease under
(E) of this paragraph in the same fiscal year;
(K) a district that offsets a decrease
under (H) of this paragraph may not reopen a school
that was closed for consolidation in the district
until
(i) seven or more years have passed since
the school closure; and
(ii) the district provides evidence
satisfactory to the department that the schools
affected by the consolidation are over capacity;
(L) a district may not reopen and
reconsolidate a school that was consolidated in the
district more than once every seven years for purposes
of the calculations made under (H) of this paragraph;
(M) a district offsetting a decrease under
(H) of this paragraph shall provide the department
with the list of schools participating in the
consolidation and the corresponding ADM;
(2) the required local contribution of a
city or borough school district is the equivalent of a
2.65 mill tax levy on the full and true value of the
taxable real and personal property in the district as
of January 1 of the second preceding fiscal year, as
determined by the Department of Commerce, Community,
and Economic Development under AS 14.17.510 and
AS 29.45.110, not to exceed 45 percent of a district's
basic need for the preceding fiscal year as determined
under (1) of this subsection.
* Sec. 14. AS 14.17.420(a) is amended to read:
(a) As a component of public school funding, a
district is eligible for special needs and secondary
school vocational and technical instruction funding
and may be eligible for intensive services funding as
follows:
(1) special needs funding is available to a
district to assist the district in providing special
education, gifted and talented education, vocational
education, and bilingual education services to its
students; a special needs funding factor of 1.20 shall
be applied as set out in AS 14.17.410(b)(1);
(2) in addition to the special needs
funding for which a district is eligible under (1) of
this subsection, a district is eligible for intensive
services funding for each special education student
who needs and receives intensive services and is
enrolled on the last day of the count period; for each
such student, intensive services funding is equal to
the intensive student count multiplied by 13;
(3) in addition to the special needs and
intensive services funding available under (1) and (2)
of this subsection, secondary school vocational and
technical instruction funding is available to assist
districts in providing vocational and technical
instruction to students who are enrolled in a
secondary school; a secondary school vocational and
technical instruction funding factor of 1.04 [1.015]
shall be applied as set out in AS 14.17.410(b)(1); in
this paragraph, "vocational and technical instruction"
excludes costs associated with
(A) administrative expenses; and
(B) instruction in general literacy,
mathematics, and job readiness skills.
* Sec. 15. AS 14.17.420 is amended by adding a new
subsection to read:
(d) To receive funding under (a)(3) of this
section, a district offering secondary school
vocational and technical instruction must file with
the department a program plan that indicates how the
district's implementation of the program will improve
student achievement. A district that receives funding
under (a)(3) of this section shall file with the
department an annual expenditures report indicating
how the funds were used by the district in the
preceding year.
* Sec. 16. AS 14.17.430 is amended to read:
Sec. 14.17.430. State funding for correspondence
study. Except as provided in AS 14.17.400(b), funding
for the state centralized correspondence study program
or a district correspondence program, including a
district that offers a statewide correspondence study
program, includes an allocation from the public
education fund in an amount calculated by using
[MULTIPLYING] the ADM of the correspondence program
reported under AS 14.17.500(a) and 14.17.600(a) [BY 90
PERCENT]."
Renumber the following bill sections accordingly.
Page 6, line 30:
Delete "$6,960"
Insert "$6,260"
Page 7, line 1, through page 9, line 9:
Delete all material and insert:
"* Sec. 18. AS 14.30 is amended by adding a new
section to read:
Sec. 14.30.773. Reading proficiency incentive
grants. (a) Subject to appropriation, a school
district is eligible to receive a reading proficiency
incentive grant of $450 for each student in
(1) kindergarten through grade three who
performs at grade level or demonstrates improvement on
expected grade-level skills on the statewide screening
tool adopted by the department under AS 14.30.760; and
(2) grades four through six who performs at
grade level or demonstrates a measure of increased
proficiency on a standards-based assessment in
language arts.
(b) The department shall adopt regulations to
implement this section.
* Sec. 19. AS 14.30.773(a), enacted by sec. 18 of
this Act, is amended to read:
(a) Subject to appropriation, a school district
is eligible to receive a reading proficiency incentive
grant of $450 for each student in
[(1)] kindergarten through grade [THREE WHO
PERFORMS AT GRADE LEVEL OR DEMONSTRATES IMPROVEMENT ON
EXPECTED GRADE-LEVEL SKILLS ON THE STATEWIDE SCREENING
TOOL ADOPTED BY THE DEPARTMENT UNDER AS 14.30.760; AND
(2) GRADES FOUR THROUGH] six who performs
at grade level or demonstrates a measure of increased
proficiency on a standards-based assessment in
language arts.
* Sec. 20. AS 14.33 is amended by adding a new
section to read:
Article 5. Mobile Communication Devices in Schools.
Sec. 14.33.300. Mobile communication devices in
schools. (a) The governing body of a school district
shall adopt a policy that prohibits a student from
using a personal mobile communication device while in
school under the supervision of an employee of the
school district except
(1) in the event of an emergency or a
perceived threat of danger;
(2) when a teacher or administrator of the
school grants permission to the student to use the
device for educational purposes;
(3) when use of the device is necessary for
the health or well-being of the student; or
(4) when use of the device is a required
component of the student's individualized education
plan.
(b) This section does not authorize the
monitoring, collecting, or accessing of information
related to a student's use of a personal mobile
communication device.
(c) In this section, "mobile communication
device" means a cellular telephone, smart phone,
personal data assistant, wireless tablet, computer, or
similar device used for voice or visual communication.
* Sec. 21. Section 6, ch. 3, SLA 2015, as amended
by sec. 5, ch. 6, SLA 2020, is amended to read:
Sec. 6. AS 14.11.014(d), 14.11.100(s), and
14.11.102(c) are repealed July 1, 2030 [2025].
* Sec. 22. The uncodified law of the State of
Alaska is amended by adding a new section to read:
LUMP SUM PAYMENT FOR CERTAIN TEACHERS. (a)
Subject to appropriation for the fiscal years ending
June 30, 2027, June 30, 2028, and June 30, 2029, a
certificated full-time teacher is entitled to receive
a lump sum payment as a retention and recruitment
incentive if the teacher was employed in a full-time
classroom teaching position for the entirety of the
school term for the school year immediately preceding
the date of payment. The department shall pay the
retention and recruitment incentive on or within a
reasonable period after July 1, 2026, July 1, 2027,
and July 1, 2028. The department shall reduce the
retention and recruitment incentive by the amount
necessary to pay mandatory employee and employer
deductions, including a deduction required under
AS 14.25. Subject to the application and certification
requirements described in (e) of this section, the
department shall pay the retention and recruitment
incentives through grants to school districts as
described in (b) - (e) of this section.
(b) The department shall pay $5,000 for each
eligible certificated full-time teacher teaching in
the following districts:
(1) Anchorage School District;
(2) Fairbanks North Star Borough School
District;
(3) Juneau Borough School District;
(4) Kenai Peninsula Borough School
District;
(5) Matanuska-Susitna Borough School
District.
(c) The department shall pay $10,000 for each
eligible certificated full-time teacher teaching in
the following districts:
(1) Alaska Gateway School District;
(2) Aleutian Region School District;
(3) Aleutians East Borough School District;
(4) Annette Island School District;
(5) Chugach School District;
(6) Copper River School District;
(7) Cordova City School District;
(8) Delta/Greely School District;
(9) Denali Borough School District;
(10) Galena City School District;
(11) Haines Borough School District;
(12) Ketchikan Gateway Borough School
District;
(13) Kodiak Island Borough School District;
(14) Mt. Edgecumbe High School;
(15) Nenana City School District;
(16) Nome Public Schools;
(17) Petersburg Borough School District;
(18) Saint Mary's School District;
(19) Sitka School District;
(20) Skagway School District;
(21) Unalaska City School District;
(22) Valdez City School District;
(23) Wrangell Public School District;
(24) Yakutat School District.
(d) The department shall pay $15,000 for each
eligible certificated full-time teacher teaching in
the following districts:
(1) Bering Strait School District;
(2) Bristol Bay Borough School District;
(3) Chatham School District;
(4) Craig City School District;
(5) Dillingham City School District;
(6) Hoonah City School District;
(7) Hydaburg City School District;
(8) Iditarod Area School District;
(9) Kake City School District;
(10) Kashunamiut School District;
(11) Klawock City School District;
(12) Kuspuk School District;
(13) Lake and Peninsula Borough School
District;
(14) Lower Kuskokwim School District;
(15) Lower Yukon School District;
(16) North Slope Borough School District;
(17) Northwest Arctic Borough School
District;
(18) Pelican City School District;
(19) Pribilof School District;
(20) Southeast Island School District;
(21) Southwest Region School District;
(22) Tanana City School District;
(23) Yukon Flats School District;
(24) Yukon-Koyukuk School District;
(25) Yupiit School District.
(e) To be eligible for the retention and
recruitment incentive described in this section, a
certificated full-time teacher must apply during each
eligible calendar year to the department on a date not
later than the final day in session for the school
term established by the governing body of the
teacher's school district or regional educational
attendance area. Application for payment shall be made
on a form designated by the commissioner of education
and early development. For each teacher who applies,
the school district or regional educational attendance
area shall certify the teacher's eligibility for
payment under this section to the department.
(f) Payment made under this section is
considered compensation for the purposes of AS 14.25.
(g) The department may adopt regulations
necessary to carry out the purposes of this section.
(h) In this section,
(1) "certificated full-time teacher"
(A) means an individual occupying a
position that requires
(i) a teaching certificate as a condition
of employment; and
(ii) teaching on a regular basis during the
normal work period for each day or week at a classroom
teaching assignment in a public elementary or
secondary school;
(B) does not include an individual teaching
as an assistant or graduate assistant or teaching on a
substitute, temporary, or per diem basis;
(2) "department" means the Department of
Education and Early Development.
* Sec. 23. The uncodified law of the State of
Alaska is amended by adding a new section to read:
REPORTS TO THE LEGISLATURE. (a) The house and
senate education committees shall jointly prepare a
report to the legislature that provides
(1) recommendations for any change to
public school foundation funding;
(2) a survey of each school district's
curricula, programs, and services and an explanation
of whether any duplication of the curricula, programs,
or services are identified within the district;
(3) a definition of "accountability" as
that term applies to measuring school and student
performance; and
(4) recommended metrics for determining
school and student performance other than the
standardized testing that is currently used.
(b) The house and senate education committees
shall, before the first day of the First Regular
Session of the Thirty-Fifth Alaska State Legislature,
deliver a copy of the report prepared under (a) of
this section to the senate secretary and the chief
clerk of the house of representatives and notify the
legislature that the report is available.
(c) The Department of Education and Early
Development shall prepare a report recommending
regulatory and statutory changes to reduce the
regulatory burden on school districts. The department
shall submit the report to the senate secretary and
the chief clerk of the house of representatives not
later than the first day of the Second Regular Session
of the Thirty-Fourth Alaska State Legislature and
notify the members of the legislature that the report
is available."
Renumber the following bill sections accordingly.
Page 9, line 12:
Delete "Sections 5 - 9"
Insert "Sections 3 - 6"
Page 9, line 13:
Delete "secs. 5 - 9"
Insert "secs. 3 - 6"
Page 9, lines 14 - 18:
Delete all material and insert:
"* Sec. 25. The uncodified law of the State of
Alaska is amended by adding a new section to read:
RETROACTIVITY. Section 21 of this Act is
retroactive to July 1, 2025.
* Sec. 26. Section 19 of this Act takes effect
June 30, 2034.
* Sec. 27. Sections 8 - 11, 21, and 25 of this Act
take effect June 30, 2025.
* Sec. 28. Sections 7, 12 - 18, 20, 22, and 23 of
this Act take effect July 1, 2025.
* Sec. 29. Except as provided in secs. 26 - 28 of
this Act, this Act takes effect July 1, 2026."
[End of amendment - CSHB 69(RLS) was reported out of committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB69 Fiscal Note #1 DEED 2.20.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| HB69 Fiscal Note #3 DEED 2.20.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| HB69 Fiscal Note #2 DEED 2.20.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| HB 69 Sponsor Statement v G 1.24.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| HB 69 Amendment #1 3.5.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| HB 69 Amendment #2 3.5.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| HB 69 Amendment #3 3.5.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| HB 69 Amendment #4 3.5.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| HB 69 Explanation of Changes Version G to W 3.5.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| CSHB 69 (RLS) v. W 3.5.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| HB 69 Sponsor Statement v G 1.24.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |
| CSHB 69 v O 3.4.25.pdf |
HRLS 3/5/2025 8:00:00 AM |
HB 69 |