State of Alaska
Fiscal Note
Bill Version: SCS HB 114(FIN) am S
2022 Legislative Session
Fiscal Note Number: 9
(H) Publish Date: 8/16/2022
Identifier: HB114SCS(FIN)-EED-PEF-5-17-22 Department: Fund Capitalization
Title: EDUCATION: SCHOOLS; FUNDING; PROGRAMS Appropriation: No Further Appropriation Required
Sponsor: RLS BY REQUEST OF THE GOVERNOR Allocation: Public Education Fund
Requester: Conference Committee OMB Component Number: 2804
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2023 Governor's
Appropriation FY2023 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2023 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Personal Services
Travel
Services
Commodities
Capital Outlay
Grants & Benefits 11,770.0 14,770.0 17,770.0 20,770.0 23,769.9 26,769.8
Miscellaneous
Total Operating 11,770.0 0.0 14,770.0 17,770.0 20,770.0 23,769.9 26,769.8
Fund Source (Operating Only)
1004 Gen Fund (UGF) 11,770.0 14,770.0 17,770.0 20,770.0 23,769.9 26,769.8
Total 11,770.0 0.0 14,770.0 17,770.0 20,770.0 23,769.9 26,769.8
Positions
Full-time
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2022) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2023) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? No
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed?
Why this fiscal note differs from previous version/comments:
Updated to incorporate SB111, specifically a $30 increase to the Base Student Allocation (BSA), and amendment to AS 14.17.905(c),
facilities constituting a school (which was HB413/SB236), into HB114 as amended on the Senate Floor.
PROV
APPrepared By: ED BY Committee
Conference Date: 05/17/2022
CO NFERENCE
Printed 8/10/2022 Page 1 of 3 Control Code: EmWLA
COMMITTEE
 SCS HB 114(FIN) am S - Fiscal Note 9
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. CSHB 114
2022 LEGISLATIVE SESSION
Analysis
This bill creates four new programs: an early education program, a comprehensive reading intervention program, a school
improvement reading program, and a virtual education consortium. This fiscal note addresses the early education
program.
The early education program, created under AS 14.03.410, is approved by the Department of Education and Early
Development (DEED) and funded by the state through a three-year grant process. Once those districts have completed the
three-year grant cycle and DEED has determined the early education program complies with the adopted standards as
created by the State Board of Education and Early Development, then those programs may be eligible for 1/2 the full-time
equivalent for average daily membership (ADM) funding under AS 14.17.410. Foundation funding would only be provided
to those districts that are not already receiving early education funding by another state or federal program. The early
education program is repealed on June 30, 2034 (FY2034).
The current pre-kindergarten grant counts, as provided by the Division of Innovation and Education Excellence, were used
in calculating anticipated foundation funding. Half of the average cost per student was used as a multiplier for purposes of
this fiscal note. This number was derived by using the FY2022 State Aid Entitlement as of 12/21/2021 of $1,199,876,241
and dividing it by the total ADM projected at 127,588.38 to arrive at $9,404. The average per student cost was then
divided in half to arrive at $4,702, so as to be in alignment with the language added in AS 14.17.500(d).
The district's pre-kindergarten students can transition to the foundation formula after completing the three year grant
process. Therefore, the first approved pre-kindergarten program to receive state aid through the ADM would be on the
fourth year or FY2027. Since those pre-kindergarten student counts cannot be determined, the following calculation of
students are based on the cohort used for projecting the grant. Total grant funding awarded to districts may not exceed $3
million in a fiscal year, unless the legislature appropriates another amount.
FY2027 = 638 students x $4,702 = $2,999,876
FY2028 = 638 students x $4,702 = $2,999,876
FY2029 = 638 students x $4,702 = $2,999,876
FY2030 = 638 students x $4,702 = $2,999,876
FY2031 = 638 students x $4,702 = $2,999,876
FY2032 = 638 students x $4,702 = $2,999,876
FY2033 = 638 students x $4,702 = $2,999,876
FY2034 = 638 students x $4,702 = $2,999,876
This bill also includes transition language for districts with existing early education programs that get approved by the
State Board of Education and Early Development, but limits the amount available under the foundation formula for
distribution in FY2023 to $3 million, and in subsequent years not more than a $3 million increase over the prior year.
This bill also amends AS 14.17.470 by increasing the base student allocation (BSA) by $30 from $5,930 to $5,960. The
increase to projected stated aid entitlement is $7,687,273.
Finally, this bill amends AS 14.17.905(c) by excluding charter schools from the average daily membership (ADM) count of a
community with an ADM of greater than 425 that has only one facility administered as a school.
Hooper Bay, in the Lower Yukon School District, was the only community affected by AS 14.17.905(c), but when the
district opened a charter school in Hooper Bay during the 2020-2021 school year, they were no longer eligible for AS
14.17.905(c) since they now have two schools within the community. This resulted in a loss of Foundation Formula
funding to the Lower Yukon School District as they now fall under AS 14.17.905(a)(3).
(Revised 11/23/21 OMB/LFD) Page 2 of 3
HB114SCS(FIN)-EED-PEF-5-17-22 Page 2 of 3 Control Code: EmWLA
 SCS HB 114(FIN) am S - Fiscal Note 9
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. CSHB 114
2022 LEGISLATIVE SESSION
Analysis
With the exclusion of charter schools from AS 14.17.905(c), the Hooper Bay School would again be provided two
adjustments for a community greater than 425 ADM with a single site facility serving grades Kindergarten through 12.
Applying the two adjustments to the FY2023 Projected Foundation Funding, it results in an increase of $1,082,707 in
funding for the Lower Yukon School District.
This bill also adds amends AS 14.17.500(g) to clarify that a student in a district-wide early education program approved
under AS 14.07.020(a)(8) is included in the ADM count for the pupil transportation program under AS 14.09.010. The
fiscal impact is unknown at this time and will be reflected in out-year budgets as the early education programs are
approved and roll into the foundation program.
The effective date of this bill is July 1, 2023 (FY2024).
(Revised 11/23/21 OMB/LFD) Page 3 of 3
HB114SCS(FIN)-EED-PEF-5-17-22 Page 3 of 3 Control Code: EmWLA


Statutes affected:
HB0114A, AM HB 114, introduced 02/24/2021: 14.43.122, 14.43.173, 14.43.170, 14.43.175
HB0114B, AM HB 114 am, introduced 04/25/2022, passed House 04/25/2022: 14.43.122, 14.43.173, 14.43.170, 14.43.175
HB0114C, AM SCS HB 114(FIN), introduced 05/15/2022: 14.43.122, 14.43.173, 14.43.170, 14.43.175, 14.43.700, 14.43.600
HB0114D, AM SCS HB 114(FIN) AM S, introduced 05/17/2022: 14.17.905, 14.03.040, 14.03.050, 14.03.060, 14.07.020, U.S.C, 14.38.010, 14.30.180, 14.30.350, 14.03.072, 14.30.765, 14.03.078, 14.03.120, 14.03.123, 14.30.760, 14.30.780, 14.03.420, 14.03.080, 14.07.165, 14.17.500, 14.17.990, 14.03.125, 47.12.990, 14.33.120, 14.07.030, 14.30.770, 14.03.410, 14.30.800, 14.07.070, 14.07.050, 14.11.014, 14.07.168, 14.03.015, 14.07.125, 14.07.180, 14.14.115, 14.17.470, 14.09.010, 14.20.015, 14.20.020, 14.30.278, 14.30.775, 14.03.030, 14.43.122, 14.43.173, 14.43.170, 14.43.175, 14.43.700, 14.43.600, 14.60.010, 47.17.290, 14.03.290
HB0114Z, AM Enrolled HB 114, introduced 05/18/2022: 14.03.040, 14.03.050, 14.03.060, 14.07.020, U.S.C, 14.38.010, 14.30.180, 14.30.350, 14.03.072, 14.30.765, 14.03.078, 14.03.120, 14.03.123, 14.30.760, 14.30.780, 14.03.420, 14.03.080, 14.07.165, 14.17.500, 14.17.990, 14.03.125, 47.12.990, 14.33.120, 14.07.030, 14.30.770, 14.03.410, 14.30.800, 14.07.070, 14.07.050, 14.11.014, 14.07.168, 14.03.015, 14.07.125, 14.07.180, 14.14.115, 14.17.470, 14.09.010, 14.17.905, 14.20.015, 14.20.020, 14.30.278, 14.30.775, 14.03.030, 14.43.122, 14.43.173, 14.43.170, 14.43.175, 14.43.700, 14.43.600, 14.60.010, 47.17.290, 14.03.290