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HOUSE BILL NO. 280
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - SECOND SESSION
BY REPRESENTATIVE PRAX
Introduced: 1/18/24
Referred: Education, Finance
A BILL
FOR AN ACT ENTITLED
1 "An Act relating to education; relating to local contributions of a city or borough school
2 district; relating to school funding; and providing for an effective date."
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
4 * Section 1. AS 14.03.260(a) is amended to read:
5 (a) A local school board shall provide an approved charter school with an
6 annual program budget. The budget shall be not less than the amount generated by the
7 students enrolled in the charter school less administrative costs retained by the local
8 school district, determined by applying the indirect cost rate approved by the
9 department up to four percent. Costs directly related to charter school facilities,
10 including rent, utilities, and maintenance, may not be included in an annual program
11 budget for the purposes of calculating the four percent cap on administrative costs
12 under this subsection. A local school board shall provide a charter school with a report
13 itemizing the administrative costs retained by the local school board under this section.
14 The "amount generated by students enrolled in the charter school" is to be determined
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1 in the same manner as it would be for a student enrolled in another public school in
2 that school district and includes funds generated by grants, appropriations, federal
3 impact aid, [THE REQUIRED LOCAL CONTRIBUTION,] the local contribution
4 under AS 14.17.410(c), special needs under AS 14.17.420(a)(1), and secondary school
5 vocational and technical instruction under AS 14.17.420(a)(3). A school district shall
6 direct state aid under AS 14.11 for the construction or major maintenance of a charter
7 school facility to the charter school that generated the state aid, subject to the same
8 terms and conditions that apply to state aid under AS 14.11 for construction or major
9 maintenance of a school facility that is not a charter school.
10 * Sec. 2. AS 14.12.020(c) is amended to read:
11 (c) The legislature shall provide the state money necessary to maintain and
12 operate districts of the state public school system described in AS 14.12.010 [THE
13 REGIONAL EDUCATIONAL ATTENDANCE AREAS]. The borough assembly for
14 a borough school district, and the city council for a city school district, may [SHALL]
15 provide [THE] money for a local contribution under AS 14.17.410(c) [THAT
16 MUST BE RAISED] from local sources to maintain and operate the district.
17 * Sec. 3. AS 14.17.410(b) is amended to read:
18 (b) Public school funding consists of state aid, a [REQUIRED] local
19 contribution under (c) of this section, and eligible federal impact aid. State
20 [DETERMINED AS FOLLOWS:
21 (1) STATE] aid equals basic need [MINUS A REQUIRED LOCAL
22 CONTRIBUTION] and 90 percent of eligible federal impact aid for that fiscal year.
23 Basic [; BASIC] need equals the sum obtained under (4) [(D)] of this subsection
24 [PARAGRAPH], multiplied by the base student allocation set out in AS 14.17.470.
25 The [;] district adjusted ADM is calculated as follows:
26 (1) [(A)] the ADM of each school in the district is calculated by
27 applying the school size factor to the student count as set out in AS 14.17.450;
28 (2) [(B)] the number obtained under (1) [(A)] of this subsection
29 [PARAGRAPH] is multiplied by the district cost factor described in AS 14.17.460;
30 (3) [(C)] the ADMs of each school in a district, as adjusted according
31 to (1) and (2) [(A) AND (B)] of this subsection [PARAGRAPH], are added; the sum
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1 is then multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the
2 secondary school vocational and technical instruction funding factor set out in
3 AS 14.17.420(a)(3);
4 (4) [(D)] the number obtained for intensive services under
5 AS 14.17.420(a)(2) and the number obtained for correspondence study under
6 AS 14.17.430 are added to the number obtained under (3) [(C)] of this subsection
7 [PARAGRAPH] or under (8) and (9) [(H) AND (I)] of this subsection
8 [PARAGRAPH];
9 (5) [(E)] notwithstanding (1) - (3) [(A) - (C)] of this subsection
10 [PARAGRAPH], if a school district's ADM adjusted for school size under (1) [(A)] of
11 this subsection [PARAGRAPH] decreases by five percent or more from one fiscal
12 year to the next fiscal year, the school district may use the last fiscal year before the
13 decrease as a base fiscal year to offset the decrease, according to the following
14 method:
15 (A) [(i)] for the first fiscal year after the base fiscal year
16 determined under this paragraph [SUBPARAGRAPH], the school district's
17 ADM adjusted for school size determined under (1) [(A)] of this subsection
18 [PARAGRAPH] is calculated as the district's ADM adjusted for school size,
19 plus 75 percent of the difference in the district's ADM adjusted for school size
20 between the base fiscal year and the first fiscal year after the base fiscal year;
21 (B) [(ii)] for the second fiscal year after the base fiscal year
22 determined under this paragraph [SUBPARAGRAPH], the school district's
23 ADM adjusted for school size determined under (1) [(A)] of this subsection
24 [PARAGRAPH] is calculated as the district's ADM adjusted for school size,
25 plus 50 percent of the difference in the district's ADM adjusted for school size
26 between the base fiscal year and the second fiscal year after the base fiscal
27 year;
28 (C) [(iii)] for the third fiscal year after the base fiscal year
29 determined under this paragraph [SUBPARAGRAPH], the school district's
30 ADM adjusted for school size determined under (1) [(A)] of this subsection
31 [PARAGRAPH] is calculated as the district's ADM adjusted for school size,
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1 plus 25 percent of the difference in the district's ADM adjusted for school size
2 between the base fiscal year and the third fiscal year after the base fiscal year;
3 (6) [(F)] the method established in (5) [(E)] of this subsection
4 [PARAGRAPH] is available to a school district for the three fiscal years following the
5 base fiscal year determined under (5) [(E)] of this subsection [PARAGRAPH] only if
6 the district's ADM adjusted for school size determined under (1) [(A)] of this
7 subsection [PARAGRAPH] for each fiscal year is less than the district's ADM
8 adjusted for school size in the base fiscal year;
9 (7) [(G)] the method established in (5) [(E)] of this subsection
10 [PARAGRAPH] does not apply to a decrease in the district's ADM adjusted for school
11 size resulting from a loss of enrollment that occurs as a result of a boundary change
12 under AS 29;
13 (8) [(H)] notwithstanding (1) - (3) [(A) - (C)] of this subsection
14 [PARAGRAPH], if one or more schools close and consolidate with one or more other
15 schools in the same community and district and, as a result of the consolidation, basic
16 need generated by the district's ADM of the consolidated schools as adjusted under (1)
17 - (3) [(A) - (C)] of this subsection [PARAGRAPH] decreases, the district may use the
18 last fiscal year before the consolidation as the base fiscal year to offset that decrease
19 for the first four fiscal years following consolidation according to the following
20 method:
21 (A) [(i)] for the first two fiscal years after the base fiscal year,
22 the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) -
23 (C)] of this subsection [PARAGRAPH] is calculated by dividing the sum of
24 the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) -
25 (C)] of this subsection [PARAGRAPH] for the base fiscal year by the sum of
26 the district's ADM of the consolidated schools for the base fiscal year without
27 adjustment, and subtracting the quotient obtained by dividing the district's
28 ADM of the consolidated schools for the current fiscal year as adjusted under
29 (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH] by the sum of the
30 district's ADM of the consolidated schools for the current fiscal year without
31 adjustment, multiplying that number by the sum of the district's ADM of the
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1 consolidated schools for the current fiscal year without adjustment, and adding
2 that number to the sum of the district's ADM of the consolidated schools for
3 the current fiscal year as adjusted under (1) - (3) [(A) - (C)] of this subsection
4 [PARAGRAPH];
5 (B) [(ii)] for the third fiscal year after the base fiscal year, the
6 district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) -
7 (C)] of this subsection [PARAGRAPH] is calculated by dividing the sum of
8 the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) -
9 (C)] of this subsection [PARAGRAPH] for the base fiscal year by the sum of
10 the district's ADM of the consolidated schools for the base fiscal year without
11 adjustment, and subtracting the quotient obtained by dividing the sum of the
12 district's ADM of the consolidated schools for the current fiscal year as
13 adjusted under (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH] by the
14 sum of the district's ADM of the consolidated schools for the current fiscal
15 year, multiplying that number by the sum of the district's ADM of the
16 consolidated schools for the current fiscal year without adjustment, multiplying
17 that number by 66 percent, and adding that number to the sum of the district's
18 ADM of the consolidated schools for the current fiscal year as adjusted under
19 (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH];
20 (C) [(iii)] for the fourth fiscal year after the base fiscal year, the
21 district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) -
22 (C)] of this subsection [PARAGRAPH] is calculated by dividing the sum of
23 the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) -
24 (C)] of this subsection [PARAGRAPH] for the base fiscal year by the sum of
25 the district's ADM of the consolidated schools for the base fiscal year without
26 adjustment, and subtracting the quotient obtained by dividing the sum of the
27 district's ADM of the consolidated schools for the current fiscal year as
28 adjusted under (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH] by the
29 sum of the district's ADM of the consolidated schools for the current fiscal
30 year, multiplying that number by the sum of the district's ADM of the
31 consolidated schools for the current fiscal year without adjustment, multiplying
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1 that number by 33 percent, and adding that number to the sum of the district's
2 ADM of the consolidated schools for the current fiscal year as adjusted under
3 (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH];
4 (D) [(iv)] to calculate the district's basic need for each fiscal
5 year, the number obtained through the calculation in (A), (B), or (C) [(i), (ii),
6 OR (iii)] of this paragraph [SUBPARAGRAPH] is added to the number
7 obtained under (3) [(C)] of this subsection [PARAGRAPH] for the remainder
8 of the district;
9 (9) [(I)] if the basic need calculated under (8)(A) - (C) [(H)(i) - (iii)] of
10 this subsection [PARAGRAPH] for one of the first four fiscal years after
11 consolidation is less than the basic need calculated under (1) - (3) [(A) - (C)] of this
12 subsection [PARAGRAPH] for that fiscal year, the basic need may not be adjusted
13 under (8) [(H)] of this subsection [PARAGRAPH] for that fiscal year;
14 (10) [(J)] a district may not offset a decrease under (8) [(H)] of this
15 subsection [PARAGRAPH] if
16 (A) [(i)] a new facility is constructed in the district for the
17 consolidation; or
18 (B) [(ii)] the district offset a decrease under (5) [(E)] of this
19 subsection [PARAGRAPH] in the same fiscal year;
20 (11) [(K)] a district that offsets a decrease under (8) [(H)] of this
21 subsection [PARAGRAPH] may not reopen a school that was closed for
22 consolidation in the district until
23 (A) [(i)] seven or more years have passed since the school
24 closure; and
25 (B) [(ii)] the district provides evidence satisfactory to the
26 department that the schools affected by the consolidation are over capacity;
27 (12) [(L)] a district may not reopen and reconsolidate a school that was
28 consolidated in the district more than once every seven years for purposes of the
29 calculations made under (8) [(H)] of this subsection [PARAGRAPH];
30 (13) [(M)] a district offsetting a decrease under (8) [(H)] of this
31 subsection [PARAGRAPH] shall provide the department with the list of schools
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1 participating in the consolidation and the corresponding ADM [;
2 (2) THE REQUIRED LOCAL CONTRIBUTION OF A CITY OR
3 BOROUGH SCHOOL DISTRICT IS THE EQUIVALENT OF A 2.65 MILL TAX
4 LEVY ON THE FULL AND TRUE VALUE OF THE TAXABLE REAL AND
5 PERSONAL PROPERTY IN THE DISTRICT AS OF JANUARY 1 OF THE
6 SECOND PRECEDING FISCAL YEAR, AS DETERMINED BY THE
7 DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC
8 DEVELOPMENT UNDER AS 14.17.510 AND AS 29.45.110, NOT TO EXCEED 45
9 PERCENT OF A DISTRICT'S BASIC NEED FOR THE PRECEDING FISCAL
10 YEAR AS DETERMINED UNDER (1) OF THIS SUBSECTION].
11 * Sec. 4. AS 14.17.410(c) is amended to read:
12 (c) A [IN ADDITION TO THE LOCAL CONTRIBUTION REQUIRED
13 UNDER (b)(2) OF THIS SECTION, A] city or borough school district in a fiscal year
14 may make a local contribution of not more than the greater of
15 (1) the equivalent of a two mill tax levy on the full and true value of
16 the taxable real and personal property in the district as of January 1 of the second
17 preceding fiscal year, as determined by the Department of Commerce, Community,
18 and Economic Development under AS 14.17.510 and AS 29.45.110; or
19 (2) 23 percent of the total of the district's basic need for the fiscal year
20 under (b) [(b)(