The bill amends Alaska's education laws to enhance the funding mechanisms for local school districts, with a particular focus on charter schools and local contributions. It mandates that local school boards allocate an annual budget to charter schools based on student enrollment figures, while excluding certain administrative costs. A significant change is the removal of the "required local contribution" requirement, granting borough assemblies and city councils the discretion to provide local funding for school district operations. The bill also revises definitions and calculations related to public school funding, including local contributions and special needs funding, and introduces new provisions for calculating a district's adjusted Average Daily Membership (ADM).

Furthermore, the bill eliminates the Department of Commerce, Community, and Economic Development's responsibility to determine the required local contribution amount, instead requiring it to assess the full taxable property value in each district biennially, with on-site inspections every four years. It updates the definition of "district adjusted ADM" and modifies conditions for school districts regarding layoff plans for tenured teachers. The distribution of supplemental grants to school districts will also be revised based on the new ADM calculations. Certain subsections of AS 14.17.410 are repealed, and these changes are set to take effect on July 1, 2025.

Statutes affected:
HB0122A, AM HB 122, introduced 02/28/2025: 14.03.260, 14.17.410, 14.17.420, 14.12.020, 14.12.010, 14.17.470, 14.17.450, 14.17.460, 14.17.430, 14.17.510, 29.45.110, 29.45.080, 14.17.990, 14.20.177, 43.23.220, 43.23.230