This bill amends the existing law regarding school funding in Alaska, specifically focusing on the required local contribution made by city or borough school districts. It introduces new provisions that allow school districts to offset decreases in their Average Daily Membership (ADM) due to school consolidations. The bill stipulates that if a school district's ADM decreases as a result of consolidating schools, the district can use the last fiscal year before the consolidation as a base year to calculate funding for the first four fiscal years following the consolidation. Additionally, it establishes conditions under which a district may not reopen a school that was closed for consolidation, including a waiting period of four years and the requirement to demonstrate that the affected schools are over capacity.

Furthermore, the bill modifies the cap on the required local contribution, which is calculated as a 2.65 mill tax levy on the taxable property within the district. The new language specifies that the required local contribution may not exceed 45 percent of a district's basic need for the preceding fiscal year or increase by more than five percent from the previous year's contribution. The effective dates for the provisions are set for July 1, 2026, and July 1, 2029, for different sections of the bill.

Statutes affected:
SB0278A, AM SB 278, introduced 03/16/2026: 14.17.410, 14.17.470, 14.17.450, 14.17.460, 14.17.420, 14.17.430, 14.17.510, 29.45.110
SB0278B, AM CSSB 278(EDC), introduced 05/16/2026: 14.17.410, 14.17.470, 14.17.450, 14.17.460, 14.17.420, 14.17.430, 14.17.510, 29.45.110