State of Alaska
Fiscal Note
Bill Version: CSHB 273(EDC)
2022 Legislative Session
Fiscal Note Number: 2
(H) Publish Date: 2/28/2022
Identifier: HB273CS(EDC)-EED-PEF-2-17-22 Department: Fund Capitalization
Title: INCREASE BASE STUDENT ALLOC. INFLATION Appropriation: No Further Appropriation Required
Sponsor: STORY Allocation: Public Education Fund
Requester: House Education 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 26,136.7 26,136.7 26,136.7 26,136.7
Miscellaneous
Total Operating 0.0 0.0 0.0 26,136.7 26,136.7 26,136.7 26,136.7
Fund Source (Operating Only)
1004 Gen Fund (UGF) 26,136.7 26,136.7 26,136.7 26,136.7
Total 0.0 0.0 0.0 26,136.7 26,136.7 26,136.7 26,136.7
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If yes, by what date are the regulations to be adopted, amended or repealed?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:
The committee substitute differs from the initial version by adding the word 'average' to make it clear that the percentage to be used is
the average of the preceding three years percentage change in the Alaska CPI for urban areas. The changes also include a lag year in
the calculation so the department will have the percentages available when the calculation needs to be done.
Prepared By: Heidi Teshner, Acting Deputy Commissioner Phone: (907)465-2875
Division: Finance and Support Services Date: 02/17/2022 03:15 PM
Approved By: Lacey Sanders, Administrative Services Director Date: 02/18/22
Agency: Department of Education & Early Development
Printed 2/25/2022 Page 1 of 3 Control Code: RIhvb
CSHB 273(EDC) - Fiscal Note 2
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. CSHB 273
2022 LEGISLATIVE SESSION
Analysis
This bill amends AS 14.17.470 by having the department, on July 1 each year, increase the base student allocation (BSA) using the
average of the first three of the preceding four calendar years percentage change of the Consumer Price Index for Urban Alaska (CPI-U)
as prepared by the United States Department of Labor.
This fiscal note uses the Alaska annual CPI-U percentage for 2019, 2020, and 2021 (1.39% + -1.10%
+ 4.88% = 5.17% / 3 = 1.72%). The average percentage difference between 2019, 2020, and 2021 is applied to the current FY2023 BSA of
$5,930 to arrive at a CPI-U adjusted BSA of $6,032 ($5,930 x 1.0172 = $6,032).
Using the FY2023 projected average daily membership counts, and the CPI-U adjusted BSA of $6,032, the new estimated total state
entitlement would increase by approximately $26,136,736. The amount in the out years would be adjusted based on an annual calculation.
The effective date of this bill is July 1, 2024 (FY2025).
Page 3 of this fiscal note provides the projected funding breakdown by school district for the CPI-U Alaska BSA increase.
(Revised 11/23/2021 OMB/LFD) Page 2 of 3
HB273CS(EDC)-EED-PEF-2-17-22 Page 2 of 3 Control Code: RIhvb
CSHB 273(EDC) - Fiscal Note 2
Department of Education & Early Development Prepared by School Finance
Updated 2/17/2022
CPI-U increase to BSA
Base Student Allocation (BSA) $5,930 $ 6,032
CPI-U 1.0172
FY2023 Proj. increase to Proj.
TOTAL STATE TOTAL STATE
School District ENTITLEMENT ENTITLEMENT Difference
Alaska Gateway $ 8,751,667 $ 8,907,252 $ 155,585
Aleutian Region 1,332,912 1,355,968 23,056
Aleutians East Borough 3,981,065 4,069,691 88,626
Anchorage 314,398,790 321,823,817 7,425,027
Annette Island 3,628,343 3,732,791 104,448
Bering Strait 30,800,589 31,525,854 725,265
Bristol Bay Borough 896,798 926,638 29,840
Chatham 3,337,723 3,398,416 60,693
Chugach 4,692,479 4,774,196 81,717
Copper River 6,823,276 6,945,810 122,534
Cordova 4,144,356 4,232,284 87,928
Craig 5,694,789 5,803,387 108,598
Delta/Greely 10,595,870 10,781,702 185,832
Denali Borough 7,133,060 7,273,650 140,590
Dillingham 5,851,981 5,967,749 115,768
Fairbanks N. Star Borough 99,522,369 101,947,536 2,425,167
Galena 32,763,110 33,327,559 564,449
Haines Borough 2,530,508 2,593,231 62,723
Hoonah 2,484,391 2,530,711 46,320
Hydaburg 1,778,028 1,809,212 31,184
Iditarod Area 5,763,697 5,871,087 107,390
Juneau Borough 32,953,875 33,797,714 843,839
Kake 2,233,134 2,276,486 43,352
Kashunamiut 4,474,950 4,585,285 110,335
Kenai Peninsula Borough 73,868,158 75,631,189 1,763,031
Ketchikan Gateway Borough 25,755,407 26,288,464 533,057
Klawock 1,759,889 1,801,201 41,312
Kodiak Island Borough 25,727,035 26,271,332 544,297
Kuspuk 6,976,761 7,135,872 159,111
Lake & Peninsula Borough 9,040,554 9,205,706 165,152
Lower Kuskokwim 61,510,954 62,839,616 1,328,662
Lower Yukon 32,902,651 33,637,730 735,079
Mat-Su Borough 169,508,196 173,036,609 3,528,413
Nenana 10,436,818 10,617,272 180,454
Nome 8,673,328 8,843,734 170,406
North Slope Borough 19,073,095 19,714,212 641,117
Northwest Arctic Borough 37,478,114 38,162,505 684,391
Pelican 459,461 468,054 8,593
Petersburg 5,596,923 5,717,261 120,338
Pribilof 973,694 998,942 25,248
Saint Mary's 3,863,824 3,931,513 67,689
Sitka Borough 10,978,127 11,243,125 264,998
Skagway 1,235,329 1,273,448 38,119
Southeast Island 4,689,669 4,770,118 80,449
Southwest Region 10,642,077 10,885,366 243,289
Tanana 752,892 766,470 13,578
Unalaska 3,862,310 3,967,691 105,381
Valdez 4,856,667 5,009,669 153,002
Wrangell 3,067,737 3,133,083 65,346
Yakutat 1,193,079 1,217,361 24,282
Yukon Flats 4,881,576 4,987,411 105,835
Yukon/Koyukuk 22,785,903 23,193,719 407,816
Yupiit 6,786,477 6,960,390 173,913
Mt. Edgecumbe High School 3,419,941 3,494,053 74,112
TOTAL $ 1,169,324,406 $ 1,195,461,142 $ 26,136,736
page 3 of 3
HB273CS(EDC)-EED-PEF-2-17-22 Page 3 of 3 Control Code: RIhvb
Statutes affected: HB0273A, AM HB 273, introduced 01/14/2022: 14.17.470
HB0273B, AM CSHB 273(EDC), introduced 02/28/2022: 14.17.470