Alaska 2023-2024 Regular Session

Alaska Senate Bill SB238 Compare Versions

Only one version of the bill is available at this time.

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2	2	SB0238A -1- SB 238
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5	5	33-LS0938\A
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11	11	SENATE BILL NO. 238
12	12
13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-THIRD LEGISLATURE - SECOND SESSION
16	16
17	17	BY SENATOR CLAMAN
18	18
19	19	Introduced: 2/19/24
20	20	Referred: Education, Finance
21	21
22	22
23	23	A BILL
24	24
25	25	FOR AN ACT ENTITLED
26	26
27	27	"An Act relating to education funding; relating to the public education fund; relating to 1
28	28	the base student allocation; and providing for an effective date." 2
29	29	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
30	30	* Section 1. AS 14.03.150(c) is amended to read: 4
31	31	(c) The department may not award a school construction or major 5
32	32	maintenance grant under AS 14.11 to a municipality that is a school district or a 6
33	33	regional educational attendance area that is not in compliance with (a) of this section. 7
34	34	The department shall reduce the amount of state aid under AS 14.17.410(b)
35	35	8
36	36	[AS 14.17.400] for which a school district may qualify by the amount, if any, paid by 9
37	37	the department under (b) of this section. 10
38	38	* Sec. 2. AS 14.17.410(b) is amended to read: 11
39	39	(b) Public school funding consists of state aid, a required local contribution, 12
40	40	and eligible federal impact aid determined as follows: 13
41	41	(1) state aid equals basic need minus a required local contribution and 14 33-LS0938\A
42	42	SB 238 -2- SB0238A
43	43	New Text Underlined [DELETED TEXT BRACKETED]
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45	45	90 percent of eligible federal impact aid for that fiscal year; basic need equals the 1
46	46	amount appropriated by the legislature for state aid, distributed proportionately 2
47	47	to a district according to the district adjusted ADM of the district [SUM 3
48	48	OBTAINED UNDER (D) OF THIS PARAGRAPH, MULTIPLIED BY THE BASE 4
49	49	STUDENT ALLOCATION SET OUT IN AS 14.17.470]; district adjusted ADM is 5
50	50	calculated as follows: 6
51	51	(A) the ADM of each school in the district is calculated by 7
52	52	applying the school size factor to the student count as set out in AS 14.17.450; 8
53	53	(B) the number obtained under (A) of this paragraph is 9
54	54	multiplied by the district cost factor described in AS 14.17.460; 10
55	55	(C) the ADMs of each school in a district, as adjusted 11
56	56	according to (A) and (B) of this paragraph, are added; the sum is then 12
57	57	multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 13
58	58	secondary school vocational and technical instruction funding factor set out in 14
59	59	AS 14.17.420(a)(3); 15
60	60	(D) the number obtained for intensive services under 16
61	61	AS 14.17.420(a)(2) and the number obtained for correspondence study under 17
62	62	AS 14.17.430 are added to the number obtained under (C) of this paragraph or 18
63	63	under (H) and (I) of this paragraph; 19
64	64	(E) notwithstanding (A) - (C) of this paragraph, if a school 20
65	65	district's ADM adjusted for school size under (A) of this paragraph decreases 21
66	66	by five percent or more from one fiscal year to the next fiscal year, the school 22
67	67	district may use the last fiscal year before the decrease as a base fiscal year to 23
68	68	offset the decrease, according to the following method: 24
69	69	(i) for the first fiscal year after the base fiscal year 25
70	70	determined under this subparagraph, the school district's ADM adjusted 26
71	71	for school size determined under (A) of this paragraph is calculated as 27
72	72	the district's ADM adjusted for school size, plus 75 percent of the 28
73	73	difference in the district's ADM adjusted for school size between the 29
74	74	base fiscal year and the first fiscal year after the base fiscal year; 30
75	75	(ii) for the second fiscal year after the base fiscal year 31 33-LS0938\A
76	76	SB0238A -3- SB 238
77	77	New Text Underlined [DELETED TEXT BRACKETED]
78	78
79	79	determined under this subparagraph, the school district's ADM adjusted 1
80	80	for school size determined under (A) of this paragraph is calculated as 2
81	81	the district's ADM adjusted for school size, plus 50 percent of the 3
82	82	difference in the district's ADM adjusted for school size between the 4
83	83	base fiscal year and the second fiscal year after the base fiscal year; 5
84	84	(iii) for the third fiscal year after the base fiscal year 6
85	85	determined under this subparagraph, the school district's ADM adjusted 7
86	86	for school size determined under (A) of this paragraph is calculated as 8
87	87	the district's ADM adjusted for school size, plus 25 percent of the 9
88	88	difference in the district's ADM adjusted for school size between the 10
89	89	base fiscal year and the third fiscal year after the base fiscal year; 11
90	90	(F) the method established in (E) of this paragraph is available 12
91	91	to a school district for the three fiscal years following the base fiscal year 13
92	92	determined under (E) of this paragraph only if the district's ADM adjusted for 14
93	93	school size determined under (A) of this paragraph for each fiscal year is less 15
94	94	than the district's ADM adjusted for school size in the base fiscal year; 16
95	95	(G) the method established in (E) of this paragraph does not 17
96	96	apply to a decrease in the district's ADM adjusted for school size resulting 18
97	97	from a loss of enrollment that occurs as a result of a boundary change under 19
98	98	AS 29; 20
99	99	(H) notwithstanding (A) - (C) of this paragraph, if one or more 21
100	100	schools close and consolidate with one or more other schools in the same 22
101	101	community and district and, as a result of the consolidation, basic need 23
102	102	generated by the district's ADM of the consolidated schools as adjusted under 24
103	103	(A) - (C) of this paragraph decreases, the district may use the last fiscal year 25
104	104	before the consolidation as the base fiscal year to offset that decrease for the 26
105	105	first four fiscal years following consolidation according to the following 27
106	106	method: 28
107	107	(i) for the first two fiscal years after the base fiscal year, 29
108	108	the district's ADM of the consolidated schools as adjusted under (A) -
109	109	30
110	110	(C) of this paragraph is calculated by dividing the sum of the district's 31 33-LS0938\A
111	111	SB 238 -4- SB0238A
112	112	New Text Underlined [DELETED TEXT BRACKETED]
113	113
114	114	ADM of the consolidated schools as adjusted under (A) - (C) of this 1
115	115	paragraph for the base fiscal year by the sum of the district's ADM of 2
116	116	the consolidated schools for the base fiscal year without adjustment, 3
117	117	and subtracting the quotient obtained by dividing the district's ADM of 4
118	118	the consolidated schools for the current fiscal year as adjusted under 5
119	119	(A) - (C) of this paragraph by the sum of the district's ADM of the 6
120	120	consolidated schools for the current fiscal year without adjustment, 7
121	121	multiplying that number by the sum of the district's ADM of the 8
122	122	consolidated schools for the current fiscal year without adjustment, and 9
123	123	adding that number to the sum of the district's ADM of the consolidated 10
124	124	schools for the current fiscal year as adjusted under (A) - (C) of this 11
125	125	paragraph; 12
126	126	(ii) for the third fiscal year after the base fiscal year, the 13
127	127	district's ADM of the consolidated schools as adjusted under (A) - (C) 14
128	128	of this paragraph is calculated by dividing the sum of the district's 15
129	129	ADM of the consolidated schools as adjusted under (A) - (C) of this 16
130	130	paragraph for the base fiscal year by the sum of the district's ADM of 17
131	131	the consolidated schools for the base fiscal year without adjustment, 18
132	132	and subtracting the quotient obtained by dividing the sum of the 19
133	133	district's ADM of the consolidated schools for the current fiscal year as 20
134	134	adjusted under (A) - (C) of this paragraph by the sum of the district's 21
135	135	ADM of the consolidated schools for the current fiscal year, 22
136	136	multiplying that number by the sum of the district's ADM of the 23
137	137	consolidated schools for the current fiscal year without adjustment, 24
138	138	multiplying that number by 66 percent, and adding that number to the 25
139	139	sum of the district's ADM of the consolidated schools for the current 26
140	140	fiscal year as adjusted under (A) - (C) of this paragraph; 27
141	141	(iii) for the fourth fiscal year after the base fiscal year, 28
142	142	the district's ADM of the consolidated schools as adjusted unde
143	143	r (A) - 29
144	144	(C) of this paragraph is calculated by dividing the sum of the district's 30
145	145	ADM of the consolidated schools as adjusted under (A) - (C) of this 31 33-LS0938\A
146	146	SB0238A -5- SB 238
147	147	New Text Underlined [DELETED TEXT BRACKETED]
148	148
149	149	paragraph for the base fiscal year by the sum of the district's ADM of 1
150	150	the consolidated schools for the base fiscal year without adjustment, 2
151	151	and subtracting the quotient obtained by dividing the sum of the 3
152	152	district's ADM of the consolidated schools for the current fiscal year as 4
153	153	adjusted under (A) - (C) of this paragraph by the sum of the district's 5
154	154	ADM of the consolidated schools for the current fiscal year, 6
155	155	multiplying that number by the sum of the district's ADM of the 7
156	156	consolidated schools for the current fiscal year without adjustment, 8
157	157	multiplying that number by 33 percent, and adding that number to the 9
158	158	sum of the district's ADM of the consolidated schools for the current 10
159	159	fiscal year as adjusted under (A) - (C) of this paragraph; 11
160	160	(iv) to calculate the district's basic need for each fiscal 12
161	161	year, the number obtained through the calculation in (i), (ii), or (iii) of 13
162	162	this subparagraph is added to the number obtained under (C) of this 14
163	163	paragraph for the remainder of the district; 15
164	164	(I) if the basic need calculated under (H)(i) - (iii) of this 16
165	165	paragraph for one of the first four fiscal years after consolidation is less than 17
166	166	the basic need calculated under (A) - (C) of this paragraph for that fiscal year, 18
167	167	the basic need may not be adjusted under (H) of this paragraph for that fiscal 19
168	168	year; 20
169	169	(J) a district may not offset a decrease under (H) of this 21
170	170	paragraph if 22
171	171	(i) a new facility is constructed in the district for the 23
172	172	consolidation; or 24
173	173	(ii) the district offset a decrease under (E) of this 25
174	174	paragraph in the same fiscal year; 26
175	175	(K) a district that offsets a decrease under (H) of this paragraph 27
176	176	may not reopen a school that was closed for consolidation in the district until 28
177	177	(i) seven or more years have passed since the school 29
178	178	closure; and 30
179	179	(ii) the district provides evidence satisfactory to the 31 33-LS0938\A
180	180	SB 238 -6- SB0238A
181	181	New Text Underlined [DELETED TEXT BRACKETED]
182	182
183	183	department that the schools affected by the consolidation are over 1
184	184	capacity; 2
185	185	(L) a district may not reopen and reconsolidate a school that 3
186	186	was consolidated in the district more than once every seven years for purposes 4
187	187	of the calculations made under (H) of this paragraph; 5
188	188	(M) a district offsetting a decrease under (H) of this paragraph 6
189	189	shall provide the department with the list of schools participating in the 7
190	190	consolidation and the corresponding ADM; 8
191	191	(2) the required local contribution of a city or borough school district is 9
192	192	the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and 10
193	193	personal property in the district as of January 1 of the second preceding fiscal year, as 11
194	194	determined by the Department of Commerce, Community, and Economic 12
195	195	Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a 13
196	196	district's basic need for the preceding fiscal year as determined under (1) of this 14
197	197	subsection. 15
198	198	* Sec. 3. AS 14.17.430 is amended to read: 16
199	199	Sec. 14.17.430. State funding for correspondence study. Funding [EXCEPT 17
200	200	AS PROVIDED IN AS 14.17.400(b), FUNDING] for the state centralized 18
201	201	correspondence study program or a district correspondence program, including a 19
202	202	district that offers a statewide correspondence study program, includes [AN 20
203	203	ALLOCATION FROM THE PUBLIC EDUCATION FUND IN] an amount 21
204	204	calculated by multiplying the ADM of the correspondence program by 90 percent. 22
205	205	* Sec. 4. AS 14.17.440(a) is amended to read: 23
206	206	(a) Funding [EXCEPT AS PROVIDED IN AS 14.17.400(b), FUNDING] for 24
207	207	state boarding schools established under AS 14.16.010 includes [AN ALLOCATION 25
208	208	FROM THE PUBLIC EDUCATION FUND IN] an amount appropriated by the 26
209	209	legislature [CALCULATED BY 27
210	210	(1) DETERMINING THE ADM OF STATE BOARDING SCHOOLS 28
211	211	BY APPLYING THE SCHOOL SIZE FACTOR TO THE STUDENT COUNT AS 29
212	212	DESCRIBED IN AS 14.17.450; 30
213	213	(2) MULTIPLYING THE NUMBER OBTAINED UNDER (1) OF 31 33-LS0938\A
214	214	SB0238A -7- SB 238
215	215	New Text Underlined [DELETED TEXT BRACKETED]
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217	217	THIS SUBSECTION BY THE SPECIAL NEEDS FACTOR IN AS 14.17.420(a)( 1) 1
218	218	AND THE SECONDARY SCHOOL VOCATIONAL AND TECHNICAL 2
219	219	INSTRUCTION FUNDING FACTOR SET OUT IN AS 14.17.420(a)(3) AND 3
220	220	MULTIPLYING THAT PRODUCT BY THE BASE STUDENT ALLOCATION; 4
221	221	AND 5
222	222	(3) MULTIPLYING THE PRODUCT DETERMINED UNDER (2) 6
223	223	OF THIS SUBSECTION BY THE DISTRICT COST FACTOR THAT IS 7
224	224	APPLICABLE TO CALCULATION OF THE STATE AID FOR THE ADJACENT 8
225	225	SCHOOL DISTRICT UNDER AS 14.17.460]. 9
226	226	* Sec. 5. AS 14.17.500(a) is amended to read: 10
227	227	(a) A district shall prepare and submit to the department by November 5 of 11
228	228	each fiscal year, in the manner and on forms prescribed by the department, an estimate 12
229	229	of its ADM and other student count data, including per school student count data, for 13
230	230	the succeeding fiscal year upon which computations can be made to estimate the 14
231	231	amount of state aid for which the district may be eligible under AS 14.17.410(b) 15
232	232	[AS 14.17.400] in the succeeding fiscal year. In making its report, the district shall 16
233	233	consider its ADM, other student count data, the pattern of growth or decline of the 17
234	234	student population in preceding years, and other pertinent information available to the 18
235	235	district. 19
236	236	* Sec. 6. AS 14.17.610(b) is amended to read: 20
237	237	(b) Distribution of state aid under (a) of this section shall be made as required 21
238	238	under AS 14.17.410. If a district receives more state aid than it is entitled to receive 22
239	239	under this chapter, the district shall immediately remit the amount of overpayment to 23
240	240	the commissioner, to be returned to the general [PUBLIC EDUCATION] fund. The 24
241	241	department may make adjustments to a district's state aid to correct underpayments 25
242	242	made in previous fiscal years. 26
243	243	* Sec. 7. AS 14.17.900(b) is amended to read: 27
244	244	(b) Money to carry out the provisions of this chapter may be appropriated 28
245	245	annually by the legislature [INTO THE PUBLIC EDUCATION FUND. IF THE 29
246	246	AMOUNT APPROPRIATED TO THE FUND FOR THE PURPOSES OF THIS 30
247	247	CHAPTER IS INSUFFICIENT TO MEET THE ALLOCATIONS AUTHORIZED 31 33-LS0938\A
248	248	SB 238 -8- SB0238A
249	249	New Text Underlined [DELETED TEXT BRACKETED]
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251	251	UNDER AS 14.17.400 - 14.17.470 FOR A FISCAL YEAR, STATE AID SHALL BE 1
252	252	REDUCED ACCORDING TO AS 14.17.400(b)]. 2
253	253	* Sec. 8. AS 37.07.020(b) is amended to read: 3
254	254	(b) In addition to the budget and bills submitted under (a) of this section, the 4
255	255	governor shall submit a capital improvements program covering the succeeding six 5
256	256	fiscal years. The governor shall also submit a fiscal plan with estimates of significant 6
257	257	sources and uses of funds for the succeeding 10 fiscal years. The fiscal plan 7
258	258	(1) must include sufficient details to identify 8
259	259	(A) significant sources of funds; 9
260	260	(B) significant uses of funds, including lump sum projections 10
261	261	of 11
262	262	(i) operating expenditures; 12
263	263	(ii) capital expenditures; 13
264	264	(iii) debt service expenditures; 14
265	265	(iv) fund capitalizations; 15
266	266	(v) appropriations of income of the Alaska permanent 16
267	267	fund (art. IX, sec. 15, Constitution of the State of Alaska), if any; 17
268	268	(2) must balance sources and uses of funds held while providing for 18
269	269	essential state services and protecting the economic stability of the state; 19
270	270	(3) must include projected balances of significant funds held in 20
271	271	separate accounts, including the budget reserve fund (art. IX, sec. 17, Constitution of 21
272	272	the State of Alaska) [, THE PUBLIC EDUCATION FUND (AS 14.17.300),] and the 22
273	273	Alaska capital income fund (AS 37.05.565); 23
274	274	(4) must set out significant assumptions used in the projections with 24
275	275	sufficient detail to enable the legislature to rely on the fiscal plan in understanding, 25
276	276	evaluating, and resolving issues of state budgeting, including information that supports 26
277	277	major areas of operating increases, such as population demographics that affect the 27
278	278	need for particular government services. 28
279	279	* Sec. 9. AS 14.17.300, 14.17.400, 14.17.470, 14.17.480(b), and 14.17.490(c) are repealed. 29
280	280	* Sec. 10. This Act takes effect July 1, 2024. 30