EDUCATION FUNDING

HB0261E -1- SCS CSHB 261(EDC)
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SENATE CS FOR CS FOR HOUSE BILL NO. 261(EDC)

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE SENATE EDUCATION COMMITTEE

Offered: 5/17/26
Referred: Finance

Sponsor(s): REPRESENTATIVES STORY, Josephson, Schrage, Himschoot, Dibert
A BILL

FOR AN ACT ENTITLED

"An Act relating to education funding; providing for an effective date by amending the 1
effective date of secs. 10, 11, 13, and 15, ch. 5, SLA 2025; and providing for an effective 2
date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 14.03.410(e) is amended to read: 5
(e) A student in an early education program may not be counted in a district's 6
ADM under AS 14.17.600 [AS 14.17.500] unless the department has approved the 7
program. 8
* Sec. 2. AS 14.11.100(o) is amended to read: 9
(o) The total amount of school construction projects approved for 10
reimbursement by the department under (a)(10) of this section 11
(1) may not exceed $190,644,901; and 12
(2) after June 30, 1998, and until July 1, 2006, shall be allocated as 13
follows: 14
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SCS CSHB 261(EDC) -2- HB0261E
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(A) $77,897,000 to projects in a municipality with a public 1
school enrollment of 25,000 or more students in fiscal year 2000, as 2
determined under former AS 14.17.500; 3
(B) $14,571,000 to projects in a municipality with a public 4
school enrollment of at least 15,000 but less than 25,000 students in fiscal year 5
2000, as determined under former AS 14.17.500; 6
(C) $14,143,000 to projects in a municipality with a public 7
school enrollment of at least 10,000 but less than 15,000 students in fiscal year 8
2000, as determined under former AS 14.17.500; 9
(D) $7,429,000 to projects in a municipality with a public 10
school enrollment of at least 7,500 but less than 10,000 students in fiscal year 11
2000, as determined under former AS 14.17.500; 12
(E) $20,712,912 to projects in a municipality with a public 13
school enrollment of at least 5,000 but less than 7,500 students in fiscal year 14
2000, as determined under former AS 14.17.500; 15
(F) $2,660,000 to projects in a municipality with a public 16
school enrollment of at least 2,750 but less than 3,000 students in fiscal year 17
2000, as determined under former AS 14.17.500; 18
(G) $454,000 to projects in a municipality with a public school 19
enrollment of at least 2,400 but less than 2,750 students in fiscal year 2000, as 20
determined under former AS 14.17.500; 21
(H) $46,869,989 to projects in a municipality with a public 22
school enrollment of at least 2,050 but less than 2,400 students in fiscal year 23
2000, as determined under former AS 14.17.500; 24
(I) $329,000 to projects in a municipality with a public school 25
enrollment of at least 1,700 but less than 1,750 students in fiscal year 2000, as 26
determined under former AS 14.17.500; 27
(J) $286,000 to projects in a municipality with a public school 28
enrollment of at least 650 but less than 725 students in fiscal year 2000, as 29
determined under former AS 14.17.500; 30
(K) $519,000 to projects in a municipality with a public school 31
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HB0261E -3- SCS CSHB 261(EDC)
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enrollment of at least 500 but less than 525 students in fiscal year 2000, as 1
determined under former AS 14.17.500; 2
(L) $2,224,000 to projects in a municipality with a public 3
school enrollment of at least 425 but less than 482 students in fiscal year 2000, 4
as determined under former AS 14.17.500; 5
(M) $2,550,000 to projects in a municipality with a public 6
school enrollment of at least 290 but less than 305 students in fiscal year 2000, 7
as determined under former AS 14.17.500. 8
* Sec. 3. AS 14.11.100(p) is amended to read: 9
(p) The total amount of school construction projects approved for 10
reimbursement by the department under (a)(13) and (a)(14) of this section 11
(1) may not exceed $177,256,000; 12
(2) after June 30, 1999, and until October 31, 2006, shall be allocated 13
as follows: 14
(A) $61,925,000 to projects in a municipality with a public 15
school enrollment of 45,000 or more students in fiscal year 2005, as 16
determined under former AS 14.17.500; 17
(B) $40,570,000 to projects in a municipality with a public 18
school enrollment of at least 14,600 but less than 20,000 students in fiscal year 19
2005, as determined under former AS 14.17.500; 20
(C) $20,000,000 to projects in a municipality with a public 21
school enrollment of at least 10,000 but less than 14,600 students in fiscal year 22
2005, as determined under former AS 14.17.500; 23
(D) $2,588,000 to projects in a municipality with a public 24
school enrollment of at least 7,500 but less than 10,000 students in fiscal year 25
2005, as determined under former AS 14.17.500; 26
(E) $5,995,000 to projects in a municipality with a public 27
school enrollment of at least 4,000 but less than 6,000 students in fiscal year 28
2005, as determined under former AS 14.17.500; 29
(F) $1,237,000 to projects in a municipality with a public 30
school enrollment of at least 2,400 but less than 2,800 students in fiscal year 31
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SCS CSHB 261(EDC) -4- HB0261E
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2005, as determined under former AS 14.17.500; 1
(G) $1,100,000 to projects in a municipality with a public 2
school enrollment of at least 2,200 but less than 2,400 students in fiscal year 3
2005, as determined under former AS 14.17.500; 4
(H) $7,164,000 to projects in a municipality with a public 5
school enrollment of at least 1,300 but less than 1,500 students in fiscal year 6
2005, as determined under former AS 14.17.500; 7
(I) $1,260,000 to projects in a municipality with a public 8
school enrollment of at least 740 but less than 757 students in fiscal year 2005, 9
as determined under former AS 14.17.500; 10
(J) $608,000 to projects in a municipality with a public school 11
enrollment of at least 650 but less than 700 students in fiscal year 2005, as 12
determined under former AS 14.17.500; 13
(K) $32,000,000 to projects in a municipality with a public 14
school enrollment of at least 500 but less than 600 students in fiscal year 2005, 15
as determined under former AS 14.17.500; 16
(L) $2,809,000 to projects in a municipality with a public 17
school enrollment of at least 370 but less than 390 students in fiscal year 2005, 18
as determined under former AS 14.17.500. 19
* Sec. 4. AS 14.11.100(q) is amended to read: 20
(q) The total amount of school construction projects approved for 21
reimbursement by the department under (a)(15) of this section 22
(1) may not exceed $14,644,000; 23
(2) after June 30, 1999, and until October 31, 2006, shall be allocated 24
as follows: 25
(A) $6,522,000 to projects in a municipality with a public 26
school enrollment of at least 1,925 but less than 2,025 students in fiscal year 27
2005, as determined under former AS 14.17.500; 28
(B) $8,122,000 to projects in a municipality with a public 29
school enrollment of at least 398 but less than 400 students in fiscal year 2005, 30
as determined under former AS 14.17.500. 31
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HB0261E -5- SCS CSHB 261(EDC)
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* Sec. 5. AS 14.16.050(a) is amended to read: 1
(a) The following provisions apply with respect to the operation and 2
management of a state boarding school as if it were a school district: 3
(1) requirements relating to school district operations: 4
(A) AS 14.03.030 - 14.03.050 (defining the school term, day in 5
session, and school holidays); 6
(B) AS 14.03.083 - 14.03.140 (miscellaneous provisions 7
applicable to school district operations); 8
(C) regulations adopted by the board under authority of 9
AS 14.07.020(a) that are applicable to school districts and their schools, unless 10
the board specifically exempts state boarding schools from compliance with a 11
regulation; 12
(D) AS 14.12.150 (authorizing school districts to establish and 13
participate in the services of a regional resource center); 14
(E) AS 14.14.050 (imposing the requirement of an annual 15
audit); 16
(F) AS 14.14.110 (authorizing cooperation with other school 17
districts); 18
(G) AS 14.14.140(b) (establishing a prohibition on 19
employment of a relative of the chief school administrator); 20
(H) AS 14.18 (prohibiting discrimination based on sex in 21
public education); 22
(2) requirements relating to the public school funding program and the 23
receipt and expenditure of that funding: 24
(A) [AS 14.17.500 (RELATING TO STUDENT COUNT 25
ESTIMATES); (B)] AS 14.17.505 (relating to school operating fund balances); 26
(B) AS 14.17.505 - 14.17.910 [(C) AS 14.17.500 - 14.17.910] 27
(setting out the procedure for payment of public school funding and imposing 28
general requirements and limits on money paid); 29
(3) requirements relating to teacher employment and retirement: 30
(A) AS 14.14.105 and 14.14.107 (relating to sick leave); 31
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SCS CSHB 261(EDC) -6- HB0261E
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(B) AS 14.20.095 - 14.20.215 (relating to the employment and 1
tenure of teachers); 2
(C) AS 14.20.280 - 14.20.350 (relating to sabbatical leave 3
provisions for teachers); 4
(D) AS 23.40.070 - 23.40.260 (authorizing collective 5
bargaining by certificated employees), except with regard to teachers who are 6
administrators and except that the board may delegate some or all of its 7
responsibilities under those statutes; 8
(E) AS 14.25 (provisions regarding the teachers' retirement 9
system); 10
(4) requirements relating to students and educational programs: 11
(A) AS 14.30.180 - 14.30.350 (relating to educational services 12
for children with disabilities); 13
(B) AS 14.30.360 - 14.30.370 (establishing health education 14
program standards); 15
(C) AS 14.30.400 - 14.30.410 (relating to bilingual and 16
bicultural education). 17
* Sec. 6. AS 14.17.410(b) is amended to read: 18
(b) Public school funding consists of state aid, a required local contribution, 19
and eligible federal impact aid determined as follows: 20
(1) state aid equals basic need minus a required local contribution and 21
90 percent of eligible federal impact aid for that fiscal year; basic need equals the sum 22
obtained under (D) of this paragraph, multiplied by the base student allocation set out 23
in AS 14.17.470; district adjusted ADM is calculated as follows: 24
(A) the ADM of each school in the district is calculated by 25
applying the school size factor to the student count as set out in AS 14.17.450; 26
for purposes of this subparagraph and except as provided in 27
AS 14.17.450(b), calculation of a school's student count under 28
AS 14.17.450 for a fiscal year is adjusted to the greater of 29
(i) the school's prior three-year average ADM 30
reported in the previous fiscal year under AS 14.17.600; 31
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HB0261E -7- SCS CSHB 261(EDC)
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(ii) the school's ADM reported in the previous fiscal 1
year under AS 14.17.600; or 2
(iii) the school's ADM reported in the current fiscal 3
year under AS 14.17.600; 4
(B) the number obtained under (A) of this paragraph is 5
multiplied by the district cost factor described in AS 14.17.460; 6
(C) the ADMs of each school in a district, as adjusted 7
according to (A) and (B) of this paragraph, are added; the sum is then 8
multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 9
secondary school vocational and technical instruction funding factor set out in 10
AS 14.17.420(a)(3); 11
(D) the number obtained for intensive services under 12
AS 14.17.420(a)(2) and the number obtained for correspondence study under 13
AS 14.17.430 are added to the number obtained under (C) of this paragraph or 14
under (E) [(H)] and (F) [(I)] of this paragraph; 15
(E) [NOTWITHSTANDING (A) - (C) OF THIS 16
PARAGRAPH, IF A SCHOOL DISTRICT'S ADM ADJUSTED FOR 17
SCHOOL SIZE UNDER (A) OF THIS PARAGRAPH DECREASES BY 18
FIVE PERCENT OR MORE FROM ONE FISCAL YEAR TO THE NEXT 19
FISCAL YEAR, THE SCHOOL DISTRICT MAY USE THE LAST FISCAL 20
YEAR BEFORE THE DECREASE AS A BASE FISCAL YEAR TO 21
OFFSET THE DECREASE, ACCORDING TO THE FOLLOWING 22
METHOD: 23
(i) FOR THE FIRST FISCAL YEAR AFTER THE 24
BASE FISCAL YEAR DETERMINED UNDER THIS 25
SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 26
FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 27
PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 28
ADJUSTED FOR SCHOOL SIZE, PLUS 75 PERCENT OF THE 29
DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 30
SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 31
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SCS CSHB 261(EDC) -8- HB0261E
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FIRST FISCAL YEAR AFTER THE BASE FISCAL YEAR; 1
(ii) FOR THE SECOND FISCAL YEAR AFTER THE 2
BASE FISCAL YEAR DETERMINED UNDER THIS 3
SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 4
FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 5
PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 6
ADJUSTED FOR SCHOOL SIZE, PLUS 50 PERCENT OF THE 7
DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 8
SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 9
SECOND FISCAL YEAR AFTER THE BASE FISCAL YEAR; 10
(iii) FOR THE THIRD FISCAL YEAR AFTER THE 11
BASE FISCAL YEAR DETERMINED UNDER THIS 12
SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED 13
FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS 14
PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM 15
ADJUSTED FOR SCHOOL SIZE, PLUS 25 PERCENT OF THE 16
DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR 17
SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE 18
THIRD FISCAL YEAR AFTER THE BASE FISCAL YEAR; 19
(F) THE METHOD ESTABLISHED IN (E) OF THIS 20
PARAGRAPH IS AVAILABLE TO A SCHOOL DISTRICT FOR THE 21
THREE FISCAL YEARS FOLLOWING THE BASE FISCAL YEAR 22
DETERMINED UNDER (E) OF THIS PARAGRAPH ONLY IF THE 23
DISTRICT'S ADM ADJUSTED FOR SCHOOL SIZE DETERMINED 24
UNDER (A) OF THIS PARAGRAPH FOR EACH FISCAL YEAR IS LESS 25
THAN THE DISTRICT'S ADM ADJUSTED FOR SCHOOL SIZE IN THE 26
BASE FISCAL YEAR; 27
(G) THE METHOD ESTABLISHED IN (E) OF THIS 28
PARAGRAPH DOES NOT APPLY TO A DECREASE IN THE DISTRICT'S 29
ADM ADJUSTED FOR SCHOOL SIZE RESULTING FROM A LOSS OF 30
ENROLLMENT THAT OCCURS AS A RESULT OF A BOUNDARY 31
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HB0261E -9- SCS CSHB 261(EDC)
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CHANGE UNDER AS 29; 1
(H)] notwithstanding (A) - (C) of this paragraph, if one or more 2
schools close and consolidate with one or more other schools in the same 3
community and district and, as a result of the consolidation, basic need 4
generated by the district's ADM of the consolidated schools as adjusted under 5
(A) - (C) of this paragraph decreases, the district may use the last fiscal year 6
before the consolidation as the base fiscal year to offset that decrease for the 7
first four fiscal years following consolidation according to the following 8
method: 9
(i) for the first two fiscal years after the base fiscal year, 10
the district's ADM of the consolidated schools as adjusted under (A) - 11
(C) of this paragraph is calculated by dividing the sum of the district's 12
ADM of the consolidated schools as adjusted under (A) - (C) of this 13
paragraph for the base fiscal year by the sum of the district's ADM of 14
the consolidated schools for the base fiscal year without adjustment, 15
and subtracting the quotient obtained by dividing the district's ADM of 16
the consolidated schools for the current fiscal year as adjusted under 17
(A) - (C) of this paragraph by the sum of the district's ADM of the 18
consolidated schools for the current fiscal year without adjustment, 19
multiplying that number by the sum of the district's ADM of the 20
consolidated schools for the current fiscal year without adjustment, and 21
adding that number to the sum of the district's ADM of the consolidated 22
schools for the current fiscal year as adjusted under (A) - (C) of this 23
paragraph; 24
(ii) for the third fiscal year after the base fiscal year, the 25
district's ADM of the consolidated schools as adjusted under (A) - (C) 26
of this paragraph is calculated by dividing the sum of the district's 27
ADM of the consolidated schools as adjusted under (A) - (C) of this 28
paragraph for the base fiscal year by the sum of the district's ADM of 29
the consolidated schools for the base fiscal year without adjustment, 30
and subtracting the quotient obtained by dividing the sum of the 31
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SCS CSHB 261(EDC) -10- HB0261E
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district's ADM of the consolidated schools for the current fiscal year as 1
adjusted under (A) - (C) of this paragraph by the sum of the district's 2
ADM of the consolidated schools for the current fiscal year, 3
multiplying that number by the sum of the district's ADM of the 4
consolidated schools for the current fiscal year without adjustment, 5
multiplying that number by 66 percent, and adding that number to the 6
sum of the district's ADM of the consolidated schools for the current 7
fiscal year as adjusted under (A) - (C) of this paragraph; 8
(iii) for the fourth fiscal year after the base fiscal year, 9
the district's ADM of the consolidated schools as adjusted under (A) - 10
(C) of this paragraph is calculated by dividing the sum of the district's 11
ADM of the consolidated schools as adjusted under (A) - (C) of this 12
paragraph for the base fiscal year by the sum of the district's ADM of 13
the consolidated schools for the base fiscal year without adjustment, 14
and subtracting the quotient obtained by dividing the sum of the 15
district's ADM of the consolidated schools for the current fiscal year as 16
adjusted under (A) - (C) of this paragraph by the sum of the district's 17
ADM of the consolidated schools for the current fiscal year, 18
multiplying that number by the sum of the district's ADM of the 19
consolidated schools for the current fiscal year without adjustment, 20
multiplying that number by 33 percent, and adding that number to the 21
sum of the district's ADM of the consolidated schools for the current 22
fiscal year as adjusted under (A) - (C) of this paragraph; 23
(iv) to calculate the district's basic need for each fiscal 24
year, the number obtained through the calculation in (i), (ii), or (iii) of 25
this subparagraph is added to the number obtained under (C) of this 26
paragraph for the remainder of the district; 27
(F) [(I)] if the basic need calculated under (E)(i) - (iii) [(H)(i) - 28
(iii)] of this paragraph for one of the first four fiscal years after consolidation is 29
less than the basic need calculated under (A) - (C) of this paragraph for that 30
fiscal year, the basic need may not be adjusted under (E) [(H)] of this 31
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HB0261E -11- SCS CSHB 261(EDC)
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paragraph for that fiscal year; 1
(G) [(J)] a district may not offset a decrease under (E) [(H)] of 2
this paragraph if 3
[(i)] a new facility is constructed in the district for the 4
consolidation; 5
(H) [OR 6
(ii) THE DISTRICT OFFSET A DECREASE UNDER 7
(E) OF THIS PARAGRAPH IN THE SAME FISCAL YEAR; 8
(K)] a district that offsets a decrease under (E) [(H)] of this 9
paragraph may not reopen a school that was closed for consolidation in the 10
district until 11
(i) seven or more years have passed since the school 12
closure; and 13
(ii) the district provides evidence satisfactory to the 14
department that the schools affected by the consolidation are over 15
capacity; 16
(I) [(L)] a district may not reopen and reconsolidate a school 17
that was consolidated in the district more than once every seven years for 18
purposes of the calculations made under (E) [(H)] of this paragraph; 19
(J) [(M)] a district offsetting a decrease under (E) [(H)] of this 20
paragraph shall provide the department with the list of schools participating in 21
the consolidation and the corresponding ADM; 22
(2) the required local contribution of a city or borough school district is 23
the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 24
personal property in the district as of January 1 of the second preceding fiscal year, as 25
determined by the Department of Commerce, Community, and Economic 26
Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 27
district's basic need for the preceding fiscal year as determined under (1) of this 28
subsection. 29
* Sec. 7. AS 14.17.420(a) is amended to read: 30
(a) As a component of public school funding, a district is eligible for special 31
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SCS CSHB 261(EDC) -12- HB0261E
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needs and secondary school vocational and technical instruction funding and may be 1
eligible for intensive services funding as follows: 2
(1) special needs funding is available to a district to assist the district 3
in providing special education, gifted and talented education, vocational education, 4
and bilingual education services to its students; a special needs funding factor of 1.20 5
shall be applied as set out in AS 14.17.410(b)(1); 6
(2) in addition to the special needs funding for which a district is 7
eligible under (1) of this subsection, a district is eligible for intensive services funding 8
[FOR EACH SPECIAL EDUCATION STUDENT WHO NEEDS AND RECEIVES 9
INTENSIVE SERVICES AND IS ENROLLED ON THE LAST DAY OF THE 10
COUNT PERIOD; FOR EACH SUCH STUDENT, INTENSIVE SERVICES 11
FUNDING IS] equal to the intensive student count multiplied by 13; the intensive 12
student count equals the greater of the following: 13
(A) the number of special education students who needed 14
and received intensive services and were enrolled on the last day of the 15
count period conducted in the previous fiscal year under AS 14.17.600(a); 16
(B) the number of special education students who needed 17
and received intensive services and were enrolled on the last day of the 18
count period conducted in the current fiscal year under AS 14.17.600(a); 19
(C) the number of special education students who needed 20
and received intensive services and were enrolled on February 15 of the 21
current fiscal year, if a district chooses to conduct a second student count 22
for the current fiscal year under this subparagraph; 23
(3) in addition to the special needs and intensive services funding 24
available under (1) and (2) of this subsection, secondary school vocational and 25
technical instruction funding is available to assist districts in providing vocational and 26
technical instruction to students who are enrolled in a secondary school; a secondary 27
school vocational and technical instruction funding factor of 1.015 shall be applied as 28
set out in AS 14.17.410(b)(1); in this paragraph, "vocational and technical instruction" 29
excludes costs associated with 30
(A) administrative expenses; and 31
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(B) instruction in general literacy, mathematics, and job 1
readiness skills. 2
* Sec. 8. AS 14.17.600(a) is amended to read: 3
(a) Within two weeks after the end of the 20-school-day period ending the 4
fourth Friday in October, each district shall transmit a report to the department that, 5
under regulations adopted by the department, reports the district's [ITS] ADM for 6
that count period, the prior three-year average ADM for each school in the 7
district, student count information the department determines is necessary to 8
calculate school ADMs under AS 14.17.450 and community and charter school 9
ADMs that relate to the district under AS 14.17.905, and other student count 10
information that [WILL AID] the department shall use to determine the amount of 11
the district's [IN MAKING A DETERMINATION OF ITS] state aid under the public 12
school funding program for the succeeding fiscal year. The district shall also 13
include in the district's report the number of special education students who 14
needed and received intensive services and are enrolled on the last day of the 15
count period, which the department shall use to determine the amount of the 16
district's intensive services funding under AS 14.17.420(a)(2)(A) for the 17
succeeding fiscal year and, if applicable, additional intensive services funding 18
under AS 14.17.420(a)(2)(B) for the current fiscal year. For centralized 19
correspondence study, the October report shall be based on the period from July 1 20
through the fourth Friday in October. The department may make necessary corrections 21
in the report submitted and shall notify the district of changes made. The 22
commissioner shall notify the governor of additional appropriations the commissioner 23
estimates to be necessary to fully finance the public school funding program for the 24
succeeding [CURRENT] fiscal year. 25
* Sec. 9. AS 14.17.600 is amended by adding new subsections to read: 26
(c) Part-time students shall be included in the student count data in accordance 27
with regulations adopted by the department. 28
(d) When reporting a district's ADM, a part-time student who is a 29
correspondence student may not be counted as more than one full-time equivalent 30
student. 31
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SCS CSHB 261(EDC) -14- HB0261E
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(e) Except as provided in (f) of this section, a student in a district-wide early 1
education program provided by a district and approved by the department under 2
AS 14.07.020(a)(8) is counted as a full-time equivalent student. 3
(f) A district may not include in a school's ADM students who are four and 4
five years of age if the students are enrolled in an early education program that 5
receives state or federal funding other than funding under this chapter. 6
(g) For purposes of AS 14.09.010, a student in a district-wide early education 7
program provided by a district and approved by the department under 8
AS 14.07.020(a)(8) is counted as a full-time equivalent student. 9
* Sec. 10. AS 14.17.600(e), enacted by sec. 9 of this Act, is amended to read: 10
(e) A district may not include in the district's ADM [EXCEPT AS 11
PROVIDED IN (f) OF THIS SECTION,] a student in a district-wide early education 12
program provided by the [A] district [AND APPROVED BY THE DEPARTMENT 13
UNDER AS 14.07.020(a)(8) IS COUNTED AS A FULL-TIME EQUIVALENT 14
STUDENT]. 15
* Sec. 11. AS 14.17.610(a) is amended to read: 16
(a) Except as provided in (d) of this section, the [THE] department shall 17
determine the state aid for each school district for [IN] a fiscal year on the basis of the 18
district's student count data reported in the previous fiscal year under AS 14.17.600. 19
On or before the 15th day of each month [OF THE FIRST NINE MONTHS] of each 20
fiscal year, one-twelfth of each district's state aid shall be distributed on the basis of 21
the data reported under AS 14.17.600 [FOR THE PRECEDING FISCAL YEAR. ON 22
OR BEFORE THE 15TH DAY OF EACH OF THE LAST THREE MONTHS OF 23
EACH FISCAL YEAR, ONE-THIRD OF THE BALANCE OF EACH DISTRICT'S 24
STATE AID SHALL BE DISTRIBUTED, AFTER THE BALANCE HAS BEEN 25
RECOMPUTED ON THE BASIS OF STUDENT COUNT AND OTHER DATA 26
REPORTED FOR THE CURRENT FISCAL YEAR]. 27
* Sec. 12. AS 14.17.610 is amended by adding new subsections to read: 28
(d) If a district is entitled to additional funding because of an increase in a 29
school's student count under AS 14.17.410(b)(1)(A)(iii) or an increase in a district's 30
intensive student count under AS 14.17.420(a)(2)(B) or (C), the department shall 31
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(1) distribute to the district the additional funding necessary to fully 1
fund the previous months of the fiscal year on the basis of the new student count on or 2
before the 15th day of the month following the student count; 3
(2) distribute the district's state aid for the remaining months of the 4
fiscal year on the basis of the new student count. 5
(e) The department may not reduce the amount of a district's state aid for a 6
fiscal year on the basis that the department distributed additional funding to another 7
district for the fiscal year under (d) of this section. 8
* Sec. 13. AS 14.17.905(a) is amended to read: 9
(a) For purposes of this chapter, the determination of the number of schools in 10
a district is subject to the following: 11
(1) a community with an ADM of at least 10, but not more than 100, 12
shall be counted as one school; 13
(2) a community with an ADM of at least 101, but not more than 425, 14
shall be counted as 15
(A) one elementary school, which includes those students in 16
grades kindergarten through six and, except as provided in AS 14.17.600 17
[AS 14.17.500], in an early education program provided by a school district 18
and approved by the department under AS 14.07.020(a)(8); and 19
(B) one secondary school, which includes students in grades 20
seven through 12; 21
(3) in a community with an ADM of greater than 425, each facility that 22
is administered as a separate school shall be counted as one school [, EXCEPT THAT 23
EACH ALTERNATIVE SCHOOL WITH AN ADM OF LESS THAN 175 SHALL 24
BE COUNTED AS A PART OF THE SCHOOL IN THE DISTRICT WITH THE 25
HIGHEST ADM]. 26
* Sec. 14. AS 14.17.905 is amended by adding a new subsection to read: 27
(d) For purposes of determining a community's ADM for a fiscal year under 28
(a) and (c) of this section, or a charter school's ADM for a fiscal year under (b) of this 29
section, the ADM is the greater of 30
(1) the community's or charter school's prior three-year average ADM 31
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reported in the previous fiscal year under AS 14.17.600; 1
(2) the community's or charter school's ADM reported in the previous 2
fiscal year under AS 14.17.600; or 3
(3) the community's or charter school's ADM reported in the current 4
fiscal year under AS 14.17.600. 5
* Sec. 15. AS 14.17.990 is amended by adding a new paragraph to read: 6
(8) "prior three-year average ADM" means the number resulting from 7
combining the ADM counts from the three student count periods immediately 8
preceding a student count period conducted under AS 14.17.600(a) for a fiscal year 9
and dividing that sum by three. 10
* Sec. 16. Section 47, ch. 40, SLA 2022, is amended to read: 11
Sec. 47. AS 14.03.120(h), 14.03.410, 14.03.420; [AS 14.17.500(e), 12
14.17.500(f), 14.17.500(g);] AS 14.20.020(l); AS 14.30.760, 14.30.765, 14.30.770, 13
14.30.775, 14.30.780, and 14.30.800 are repealed. 14
* Sec. 17. AS 14.17.500 is repealed. 15
* Sec. 18. AS 14.17.600(f) and 14.17.600(g) are repealed. 16
* Sec. 19. Section 19, ch. 5, SLA 2025, is repealed. 17
* Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 18
read: 19
TRANSITION: HOLD HARMLESS. Notwithstanding the repeal of 20
AS 14.17.410(b)(1)(E) - (G) by sec. 6 of this Act, a school district that meets the requirements 21
on July 1, 2026, to employ the method for calculating the school district's ADM adjusted for 22
school size as provided under AS 14.17.410(b)(1)(E) - (G), as those subparagraphs read on 23
the day before the effective date of sec. 6 of this Act, may continue to calculate the school 24
district's ADM adjusted for school size according to AS 14.17.410(b)(1)(E) - (G), as those 25
subparagraphs read on the day before the effective date of sec. 6 of this Act, until the school 26
district is no longer eligible to calculate the school district's ADM adjusted for school size 27
under AS 14.17.410(b)(1)(E) - (G), as those subparagraphs read on the day before the 28
effective date of sec. 6 of this Act. In this section, "ADM" has the meaning given in 29
AS 14.17.990. 30
* Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 31
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read: 1
TRANSITION: ADM CALCULATION. (a) Notwithstanding AS 14.17.420(a)(2)(A), 2
as amended by sec. 7 of this Act, for the fiscal year ending June 30, 2027, if student count 3
data is unavailable to calculate the number of special education students who needed and 4
received intensive services and were enrolled on the last day of the count period conducted 5
under AS 14.17.600(a), a district shall use student count data that is applicable to the fiscal 6
year ending June 30, 2026, obtained under AS 14.17.420(a), as that section read on the day 7
before the effective date of sec. 7 of this Act. 8
(b) Notwithstanding AS 14.17.600(a), as amended by sec. 8 of this Act, 9
AS 14.17.905(d), added by sec. 14 of this Act, and AS 14.17.990(8), added by sec. 15 of this 10
Act, for the fiscal years ending June 30, 2027, June 30, 2028, and June 30, 2029, if student 11
count data is unavailable to calculate a school's prior three-year average ADM under 12
AS 14.17.600(a), as amended by sec. 8 of this Act, or a community's or charter school's prior 13
three-year average ADM under AS 14.17.905(d), added by sec. 14 of this Act, a school, 14
community, or charter school, as applicable, shall, for each year of the prior three-year 15
average ADM for which data is unavailable, use student count data that is applicable to that 16
year obtained under AS 14.17.600, as that section read on the day before the effective date of 17
sec. 8 of this Act. In this subsection, "ADM" has the meaning given in AS 14.17.990. 18
* Sec. 22. Section 20, ch. 5, SLA 2025, is amended to read: 19
Sec. 20. Sections [IF SECS.] 10, 11, 13, and 15, ch. 5, SLA 2025, [OF THIS 20
ACT] take effect July 1, 2026 [, THEY TAKE EFFECT 181 DAYS AFTER THE 21
EFFECTIVE DATE OF THE SECTION OF SB 113 OR A SUBSTANTIALLY 22
SIMILAR BILL THAT EFFECTUATES THE SALES FACTOR, AS 23
DETERMINED UNDER AS 43.19 (MULTISTATE TAX COMPACT), AS THE 24
APPORTIONMENT FACTOR FOR HIGHLY DIGITIZED BUSINESSES]. 25
* Sec. 23. Sections 10 and 18 of this Act take effect on the effective date of sec. 47, ch. 40, 26
SLA 2022. 27
* Sec. 24. Except as provided in sec. 23 of this Act, this Act takes effect July 1, 2026. 28