Alaska 2025-2026 Regular Session

Alaska House Bill HB122 Compare Versions

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

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2	2	HB0122a -1- HB 122
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5	5	34-LS0336\A
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9	9
10	10
11	11	HOUSE BILL NO. 122
12	12
13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
16	16
17	17	BY REPRESENTATIVE PRAX
18	18
19	19	Introduced: 2/28/25
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; relating to local contributions of a city or borough school 1
28	28	district; relating to school funding; 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 14.03.260(a) is amended to read: 4
31	31	(a) A local school board shall provide an approved charter school with an 5
32	32	annual program budget. The budget shall be not less than the amount generated by the 6
33	33	students enrolled in the charter school less administrative costs retained by the local 7
34	34	school district, determined by applying the indirect cost rate approved by the 8
35	35	department up to four percent. Costs directly related to charter school facilities, 9
36	36	including rent, utilities, and maintenance, may not be included in an annual program 10
37	37	budget for the purposes of calculating the four percent cap on administrative costs 11
38	38	under this subsection. A local school board shall provide a charter school with a report 12
39	39	itemizing the administrative costs retained by the local school board under this section. 13
40	40	The "amount generated by students enrolled in the charter school" is to be determined 14 34-LS0336\A
41	41	HB 122 -2- HB0122a
42	42	New Text Underlined [DELETED TEXT BRACKETED]
43	43
44	44	in the same manner as it would be for a student enrolled in another public school in 1
45	45	that school district and includes funds generated by grants, appropriations, federal 2
46	46	impact aid, [THE REQUIRED LOCAL CONTRIBUTION,] the local contribution 3
47	47	under AS 14.17.410(c), special needs under AS 14.17.420(a)(1), and secondary school 4
48	48	vocational and technical instruction under AS 14.17.420(a)(3). A school district shall 5
49	49	direct state aid under AS 14.11 for the construction or major maintenance of a charter 6
50	50	school facility to the charter school that generated the state aid, subject to the same 7
51	51	terms and conditions that apply to state aid under AS 14.11 for construction or major 8
52	52	maintenance of a school facility that is not a charter school. 9
53	53	* Sec. 2. AS 14.12.020(c) is amended to read: 10
54	54	(c) The legislature shall provide the state money necessary to maintain and 11
55	55	operate districts of the state public school system described in AS 14.12.010 [THE 12
56	56	REGIONAL EDUCATIONAL ATTENDANCE AREAS]. The borough assembly fo r 13
57	57	a borough school district, and the city council for a city school district, may [SHALL] 14
58	58	provide [THE] money for a local contribution under AS 14.17.410(c) [THAT 15
59	59	MUST BE RAISED] from local sources to maintain and operate the district. 16
60	60	* Sec. 3. AS 14.17.410(b) is amended to read: 17
61	61	(b) Public school funding consists of state aid, a [REQUIRED] local 18
62	62	contribution under (c) of this section, and eligible federal impact aid. State 19
63	63	[DETERMINED AS FOLLOWS: 20
64	64	(1) STATE] aid equals basic need minus [A REQUIRED LOCAL 21
65	65	CONTRIBUTION AND] 90 percent of eligible federal impact aid for that fiscal year. 22
66	66	Basic [; BASIC] need equals the sum obtained under (4) [(D)] of this subsection 23
67	67	[PARAGRAPH], multiplied by the base student allocation set out in AS 14.17.470. 24
68	68	The [;] district adjusted ADM is calculated as follows: 25
69	69	(1) [(A)] the ADM of each school in the district is calculated by 26
70	70	applying the school size factor to the student count as set out in AS 14.17.450; 27
71	71	(2) [(B)] the number obtained under (1) [(A)] of this subsection 28
72	72	[PARAGRAPH] is multiplied by the district cost factor described in AS 14.17.460; 29
73	73	(3) [(C)] the ADMs of each school in a district, as adjusted according 30
74	74	to (1) and (2) [(A) AND (B)] of this subsection [PARAGRAPH], are added; the sum 31 34-LS0336\A
75	75	HB0122a -3- HB 122
76	76	New Text Underlined [DELETED TEXT BRACKETED]
77	77
78	78	is then multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the 1
79	79	secondary school vocational and technical instruction funding factor set out in 2
80	80	AS 14.17.420(a)(3); 3
81	81	(4) [(D)] the number obtained for intensive services under 4
82	82	AS 14.17.420(a)(2) and the number obtained for correspondence study under 5
83	83	AS 14.17.430 are added to the number obtained under (3) [(C)] of this subsection 6
84	84	[PARAGRAPH] or under (8) and (9) [(H) AND (I)] of this subsection 7
85	85	[PARAGRAPH]; 8
86	86	(5) [(E)] notwithstanding (1) - (3) [(A) - (C)] of this subsection 9
87	87	[PARAGRAPH], if a school district's ADM adjusted for school size under (1) [(A)] of 10
88	88	this subsection [PARAGRAPH] decreases by five percent or more from one fiscal 11
89	89	year to the next fiscal year, the school district may use the last fiscal year before the 12
90	90	decrease as a base fiscal year to offset the decrease, according to the following 13
91	91	method: 14
92	92	(A) [(i)] for the first fiscal year after the base fiscal year 15
93	93	determined under this paragraph [SUBPARAGRAPH], the school district's 16
94	94	ADM adjusted for school size determined under (1) [(A)] of this subsection 17
95	95	[PARAGRAPH] is calculated as the district's ADM adjusted for school size, 18
96	96	plus 75 percent of the difference in the district's ADM adjusted for school size 19
97	97	between the base fiscal year and the first fiscal year after the base fiscal year; 20
98	98	(B) [(ii)] for the second fiscal year after the base fiscal year 21
99	99	determined under this paragraph [SUBPARAGRAPH], the school district's 22
100	100	ADM adjusted for school size determined under (1) [(A)] of this subsection 23
101	101	[PARAGRAPH] is calculated as the district's ADM adjusted for school size, 24
102	102	plus 50 percent of the difference in the district's ADM adjusted for school size 25
103	103	between the base fiscal year and the second fiscal year after the base fiscal 26
104	104	year; 27
105	105	(C) [(iii)] for the third fiscal year after the base fiscal year 28
106	106	determined under this paragraph [SUBPARAGRAPH], the school district's 29
107	107	ADM adjusted for school size determined under (1) [(A)] of this subsection 30
108	108	[PARAGRAPH] is calculated as the district's ADM adjusted for school size, 31 34-LS0336\A
109	109	HB 122 -4- HB0122a
110	110	New Text Underlined [DELETED TEXT BRACKETED]
111	111
112	112	plus 25 percent of the difference in the district's ADM adjusted for school size 1
113	113	between the base fiscal year and the third fiscal year after the base fiscal year; 2
114	114	(6) [(F)] the method established in (5) [(E)] of this subsection 3
115	115	[PARAGRAPH] is available to a school district for the three fiscal years following the 4
116	116	base fiscal year determined under (5) [(E)] of this subsection [PARAGRAPH] only if 5
117	117	the district's ADM adjusted for school size determined under (1) [(A)] of this 6
118	118	subsection [PARAGRAPH] for each fiscal year is less than the district's ADM 7
119	119	adjusted for school size in the base fiscal year; 8
120	120	(7) [(G)] the method established in (5) [(E)] of this subsection 9
121	121	[PARAGRAPH] does not apply to a decrease in the district's ADM adjusted for school 10
122	122	size resulting from a loss of enrollment that occurs as a result of a boundary change 11
123	123	under AS 29; 12
124	124	(8) [(H)] notwithstanding (1) - (3) [(A) - (C)] of this subsection 13
125	125	[PARAGRAPH], if one or more schools close and consolidate with one or more other 14
126	126	schools in the same community and district and, as a result of the consolidation, basic 15
127	127	need generated by the district's ADM of the consolidated schools as adjusted under (1) 16
128	128	- (3) [(A) - (C)] of this subsection [PARAGRAPH] decreases, the district may use the 17
129	129	last fiscal year before the consolidation as the base fiscal year to offset that decrease 18
130	130	for the first four fiscal years following consolidation according to the following 19
131	131	method: 20
132	132	(A) [(i)] for the first two fiscal years after the base fiscal year, 21
133	133	the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 22
134	134	(C)] of this subsection [PARAGRAPH] is calculated by dividing the sum of 23
135	135	the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 24
136	136	(C)] of this subsection [PARAGRAPH] for the base fiscal year by the sum of 25
137	137	the district's ADM of the consolidated schools for the base fiscal year without 26
138	138	adjustment, and subtracting the quotient obtained by dividing the district's 27
139	139	ADM of the consolidated schools for the current fiscal year as adjusted under 28
140	140	(1) - (3) [(A) - (C)] of this subsection [PARAGRAPH] by the sum of the 29
141	141	district's ADM of the consolidated schools for the current fiscal year without 30
142	142	adjustment, multiplying that number by the sum of the district's ADM of the 31 34-LS0336\A
143	143	HB0122a -5- HB 122
144	144	New Text Underlined [DELETED TEXT BRACKETED]
145	145
146	146	consolidated schools for the current fiscal year without adjustment, and adding 1
147	147	that number to the sum of the district's ADM of the consolidated schools for 2
148	148	the current fiscal year as adjusted under (1) - (3) [(A) - (C)] of this subsection 3
149	149	[PARAGRAPH]; 4
150	150	(B) [(ii)] for the third fiscal year after the base fiscal year, the 5
151	151	district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 6
152	152	(C)] of this subsection [PARAGRAPH] is calculated by dividing the sum of 7
153	153	the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 8
154	154	(C)] of this subsection [PARAGRAPH] for the base fiscal year by the sum of 9
155	155	the district's ADM of the consolidated schools for the base fiscal year without 10
156	156	adjustment, and subtracting the quotient obtained by dividing the sum of the 11
157	157	district's ADM of the consolidated schools for the current fiscal year as 12
158	158	adjusted under (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH] by the 13
159	159	sum of the district's ADM of the consolidated schools for the current fiscal 14
160	160	year, multiplying that number by the sum of the district's ADM of the 15
161	161	consolidated schools for the current fiscal year without adjustment, multiplying 16
162	162	that number by 66 percent, and adding that number to the sum of the district's 17
163	163	ADM of the consolidated schools for the current fiscal year as adjusted under 18
164	164	(1) - (3) [(A) - (C)] of this subsection [PARAGRAPH]; 19
165	165	(C) [(iii)] for the fourth fiscal year after the base fiscal year, the 20
166	166	district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 21
167	167	(C)] of this subsection [PARAGRAPH] is calculated by dividing the sum of 22
168	168	the district's ADM of the consolidated schools as adjusted under (1) - (3) [(A) - 23
169	169	(C)] of this subsection [PARAGRAPH] for the base fiscal year by the sum of 24
170	170	the district's ADM of the consolidated schools for the base fiscal year without 25
171	171	adjustment, and subtracting the quotient obtained by dividing the sum of the 26
172	172	district's ADM of the consolidated schools for the current fiscal year as 27
173	173	adjusted under (1) - (3) [(A) - (C)] of this subsection [PARAGRAPH] by the 28
174	174	sum of the district's ADM of the consolidated schools for the current fiscal 29
175	175	year, multiplying that number by the sum of the district's ADM of the 30
176	176	consolidated schools for the current fiscal year without adjustment, multiplying 31 34-LS0336\A
177	177	HB 122 -6- HB0122a
178	178	New Text Underlined [DELETED TEXT BRACKETED]
179	179
180	180	that number by 33 percent, and adding that number to the sum of the district's 1
181	181	ADM of the consolidated schools for the current fiscal year as adjusted under 2
182	182	(1) - (3) [(A) - (C)] of this subsection [PARAGRAPH]; 3
183	183	(D) [(iv)] to calculate the district's basic need for each fiscal 4
184	184	year, the number obtained through the calculation in (A), (B), or (C) [(i), (ii), 5
185	185	OR (iii)] of this paragraph [SUBPARAGRAPH] is added to the number 6
186	186	obtained under (3) [(C)] of this subsection [PARAGRAPH] for the remainder 7
187	187	of the district; 8
188	188	(9) [(I)] if the basic need calculated under (8)(A) - (C) [(H)(i) - (iii)] of 9
189	189	this subsection [PARAGRAPH] for one of the first four fiscal years after 10
190	190	consolidation is less than the basic need calculated under (1) - (3) [(A) - (C)] of this 11
191	191	subsection [PARAGRAPH] for that fiscal year, the basic need may not be adjusted 12
192	192	under (8) [(H)] of this subsection [PARAGRAPH] for that fiscal year; 13
193	193	(10) [(J)] a district may not offset a decrease under (8) [(H)] of this 14
194	194	subsection [PARAGRAPH] if 15
195	195	(A) [(i)] a new facility is constructed in the district for the 16
196	196	consolidation; or 17
197	197	(B) [(ii)] the district offset a decrease under (5) [(E)] of this 18
198	198	subsection [PARAGRAPH] in the same fiscal year; 19
199	199	(11) [(K)] a district that offsets a decrease under (8) [(H)] of this 20
200	200	subsection [PARAGRAPH] may not reopen a school that was closed for 21
201	201	consolidation in the district until 22
202	202	(A) [(i)] seven or more years have passed since the school 23
203	203	closure; and 24
204	204	(B) [(ii)] the district provides evidence satisfactory to the 25
205	205	department that the schools affected by the consolidation are over capacity; 26
206	206	(12) [(L)] a district may not reopen and reconsolidate a school that was 27
207	207	consolidated in the district more than once every seven years for purposes of the 28
208	208	calculations made under (8) [(H)] of this subsection [PARAGRAPH]; 29
209	209	(13) [(M)] a district offsetting a decrease under (8) [(H)] of this 30
210	210	subsection [PARAGRAPH] shall provide the department with the list of schools 31 34-LS0336\A
211	211	HB0122a -7- HB 122
212	212	New Text Underlined [DELETED TEXT BRACKETED]
213	213
214	214	participating in the consolidation and the corresponding ADM [; 1
215	215	(2) THE REQUIRED LOCAL CONTRIBUTION OF A CITY OR 2
216	216	BOROUGH SCHOOL DISTRICT IS THE EQUIVALENT OF A 2.65 MILL TAX 3
217	217	LEVY ON THE FULL AND TRUE VALUE OF THE TAXABLE REAL AND 4
218	218	PERSONAL PROPERTY IN THE DISTRICT AS OF JANUARY 1 OF THE 5
219	219	SECOND PRECEDING FISCAL YEAR, AS DETERMINED BY THE 6
220	220	DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC 7
221	221	DEVELOPMENT UNDER AS 14.17.510 AND AS 29.45.110, NOT TO EXCEED 45 8
222	222	PERCENT OF A DISTRICT'S BASIC NEED FOR THE PRECEDING FISCAL 9
223	223	YEAR AS DETERMINED UNDER (1) OF THIS SUBSECTION]. 10
224	224	* Sec. 4. AS 14.17.410(c) is amended to read: 11
225	225	(c) A [IN ADDITION TO THE LOCAL CONTRIBUTION REQUIRED 12
226	226	UNDER (b)(2) OF THIS SECTION, A] city or borough school district in a fiscal year 13
227	227	may make a local contribution of not more than the greater of 14
228	228	(1) the equivalent of a two mill tax levy on the full and true value of 15
229	229	the taxable real and personal property in the district as of January 1 of the second 16
230	230	preceding fiscal year, as determined by the Department of Commerce, Community, 17
231	231	and Economic Development under AS 14.17.510 and AS 29.45.110; or 18
232	232	(2) 23 percent of the total of the district's basic need for the fiscal year 19
233	233	under (b) [(b)(1)] of this section and any additional funding distributed to the district 20
234	234	in a fiscal year according to (b) of this section. 21
235	235	* Sec. 5. AS 14.17.420(a) is amended to read: 22
236	236	(a) As a component of public school funding, a district is eligible for special 23
237	237	needs and secondary school vocational and technical instruction funding and may be 24
238	238	eligible for intensive services funding as follows: 25
239	239	(1) special needs funding is available to a district to assist the district 26
240	240	in providing special education, gifted and talented education, vocational education, 27
241	241	and bilingual education services to its students; a special needs funding factor of 1.20 28
242	242	shall be applied as set out in AS 14.17.410(b) [AS 14.17.410(b)(1)]; 29
243	243	(2) in addition to the special needs funding for which a district is 30
244	244	eligible under (1) of this subsection, a district is eligible for intensive services funding 31 34-LS0336\A
245	245	HB 122 -8- HB0122a
246	246	New Text Underlined [DELETED TEXT BRACKETED]
247	247
248	248	for each special education student who needs and receives intensive services and is 1
249	249	enrolled on the last day of the count period; for each such student, intensive services 2
250	250	funding is equal to the intensive student count multiplied by 13; 3
251	251	(3) in addition to the special needs and intensive services funding 4
252	252	available under (1) and (2) of this subsection, secondary school vocational and 5
253	253	technical instruction funding is available to assist districts in providing vocational and 6
254	254	technical instruction to students who are enrolled in a secondary school; a secondary 7
255	255	school vocational and technical instruction funding factor of 1.015 shall be applied as 8
256	256	set out in AS 14.17.410(b) [AS 14.17.410(b)(1)]; in this paragraph, "vocational and 9
257	257	technical instruction" excludes costs associated with 10
258	258	(A) administrative expenses; and 11
259	259	(B) instruction in general literacy, mathematics, and job 12
260	260	readiness skills. 13
261	261	* Sec. 6. AS 14.17.460(a) is amended to read: 14
262	262	(a) For purposes of calculating a district's adjusted ADM under 15
263	263	AS 14.17.410(b) [AS 14.17.410(b)(1)], the district cost factor for a school district is 16
264	264	(1) for the fiscal year ending June 30, 2009, the factor set out under column (A) of this 17
265	265	subsection, (2) for the fiscal year ending June 30, 2010, the factor set out under 18
266	266	column (B) of this subsection, (3) for the fiscal year ending June 30, 2011, the factor 19
267	267	set out under column (C) of this subsection, (4) for the fiscal year ending June 30, 20
268	268	2012, the factor set out under column (D) of this subsection, and (5) for fiscal years 21
269	269	ending on or after June 30, 2013, the factor set out under column (E) of this 22
270	270	subsection: 23
271	271	DISTRICT COST FACTOR 24
272	272	DISTRICT (A) (B) (C) (D) (E) 25
273	273	Alaska Gateway 1.443 1.481 1.519 1.557 1.594 26
274	274	Aleutians East 1.707 1.778 1.849 1.920 1.991 27
275	275	Aleutians Region 1.838 1.864 1.890 1.916 1.939 28
276	276	Anchorage 1.000 1.000 1.000 1.000 1.000 29
277	277	Annette Island 1.175 1.216 1.257 1.298 1.338 30
278	278	Bering Strait 1.762 1.821 1.880 1.939 1.998 31 34-LS0336\A
279	279	HB0122a -9- HB 122
280	280	New Text Underlined [DELETED TEXT BRACKETED]
281	281
282	282	Bristol Bay 1.370 1.397 1.424 1.451 1.478 1
283	283	Chatham 1.348 1.405 1.462 1.519 1.576 2
284	284	Chugach 1.395 1.420 1.445 1.470 1.496 3
285	285	Copper River 1.246 1.264 1.282 1.300 1.316 4
286	286	Cordova 1.165 1.182 1.199 1.216 1.234 5
287	287	Craig 1.108 1.133 1.158 1.183 1.206 6
288	288	Delta/Greely 1.174 1.191 1.208 1.225 1.241 7
289	289	Denali 1.323 1.326 1.329 1.332 1.332 8
290	290	Dillingham 1.300 1.312 1.324 1.336 1.346 9
291	291	Fairbanks 1.055 1.059 1.063 1.067 1.070 10
292	292	Galena 1.370 1.376 1.382 1.388 1.391 11
293	293	Haines 1.104 1.128 1.152 1.176 1.200 12
294	294	Hoonah 1.227 1.270 1.313 1.356 1.399 13
295	295	Hydaburg 1.295 1.348 1.401 1.454 1.504 14
296	296	Iditarod 1.658 1.705 1.752 1.799 1.846 15
297	297	Juneau 1.075 1.093 1.111 1.129 1.145 16
298	298	Kake 1.242 1.296 1.350 1.404 1.459 17
299	299	Kashunamiut 1.504 1.533 1.562 1.591 1.619 18
300	300	Kenai Peninsula 1.088 1.109 1.130 1.151 1.171 19
301	301	Ketchikan 1.085 1.106 1.127 1.148 1.170 20
302	302	Klawock 1.160 1.196 1.232 1.268 1.302 21
303	303	Kodiak Island 1.191 1.216 1.241 1.266 1.289 22
304	304	Kuspuk 1.584 1.622 1.660 1.698 1.734 23
305	305	Lake and Peninsula 1.776 1.831 1.886 1.941 1.994 24
306	306	Lower Kuskokwim 1.577 1.599 1.621 1.643 1.663 25
307	307	Lower Yukon 1.650 1.703 1.756 1.809 1.861 26
308	308	Matanuska-Susitna 1.040 1.048 1.056 1.064 1.070 27
309	309	Mt. Edgecumbe 1.098 1.123 1.148 1.173 1.195 28
310	310	Nenana 1.304 1.313 1.322 1.331 1.338 29
311	311	Nome 1.385 1.402 1.419 1.436 1.450 30
312	312	North Slope 1.648 1.684 1.720 1.756 1.791 31 34-LS0336\A
313	313	HB 122 -10- HB0122a
314	314	New Text Underlined [DELETED TEXT BRACKETED]
315	315
316	316	Northwest Arctic 1.686 1.720 1.754 1.788 1.823 1
317	317	Pelican 1.384 1.408 1.432 1.456 1.477 2
318	318	Petersburg 1.122 1.153 1.184 1.215 1.244 3
319	319	Pribilof 1.555 1.589 1.623 1.657 1.691 4
320	320	Sitka 1.098 1.123 1.148 1.173 1.195 5
321	321	Skagway 1.159 1.163 1.167 1.171 1.174 6
322	322	Southeast Island 1.264 1.299 1.334 1.369 1.403 7
323	323	Southwest Region 1.554 1.587 1.620 1.653 1.685 8
324	324	St. Mary's 1.488 1.522 1.556 1.590 1.624 9
325	325	Tanana 1.641 1.677 1.713 1.749 1.786 10
326	326	Unalaska 1.343 1.368 1.393 1.418 1.441 11
327	327	Valdez 1.133 1.143 1.153 1.163 1.170 12
328	328	Wrangell 1.080 1.100 1.120 1.140 1.159 13
329	329	Yakutat 1.229 1.275 1.321 1.367 1.412 14
330	330	Yukon Flats 1.892 1.948 2.004 2.060 2.116 15
331	331	Yukon/Koyukuk 1.669 1.711 1.753 1.795 1.835 16
332	332	Yupiit 1.596 1.628 1.660 1.692 1.723. 17
333	333	* Sec. 7. AS 14.17.510(a) is amended to read: 18
334	334	(a) To [DETERMINE THE AMOUNT OF REQUIRED LOCAL 19
335	335	CONTRIBUTION UNDER AS 14.17.410(b)(2) AND TO] aid the department and the 20
336	336	legislature in planning, the Department of Commerce, Community, and Economic 21
337	337	Development, in consultation with the assessor for each district in a city or borough, 22
338	338	shall determine the full and true value of the taxable real and personal property in each 23
339	339	district in a city or borough. If there is no local assessor or current local assessment for 24
340	340	a city or borough school district, then the Department of Commerce, Community, and 25
341	341	Economic Development shall make the determination of full and true value guided by 26
342	342	AS 29.45.110 and based on a determination of full and true value made by the state 27
343	343	assessor at least every two years using the best information available, including on-site 28
344	344	inspections made by the state assessor in each of those districts at least once every four 29
345	345	years. For purposes of this subsection, the full and true value of taxable real and 30
346	346	personal property in any area detached shall be excluded from the determination of the 31 34-LS0336\A
347	347	HB0122a -11- HB 122
348	348	New Text Underlined [DELETED TEXT BRACKETED]
349	349
350	350	full and true value of the municipality from which the property was detached for the 1
351	351	two years immediately preceding the effective date of the detachment. Also, in making 2
352	352	the determination for a municipality that is a school district, or for a city that is within 3
353	353	a borough school district, the assessed value of property taxable under AS 43.56 shall 4
354	354	be excluded if a tax is not levied under AS 29.45.080 by the municipality that is the 5
355	355	school district. The determination of full and true value shall be made by October 1 6
356	356	and sent by certified mail, return receipt requested, on or before that date to the 7
357	357	president of the school board in each city or borough school district. Duplicate copies 8
358	358	shall be sent to the commissioner. The governing body of a city or borough that is a 9
359	359	school district may obtain judicial review of the determination. The superior court may 10
360	360	modify the determination of the Department of Commerce, Community, and 11
361	361	Economic Development only upon a finding of abuse of discretion or upon a finding 12
362	362	that there is no substantial evidence to support the determination. 13
363	363	* Sec. 8. AS 14.17.990(3) is amended to read: 14
364	364	(3) "district adjusted ADM" means the number resulting from the 15
365	365	calculations under AS 14.17.410(b) [AS 14.17.410(b)(1)]; 16
366	366	* Sec. 9. AS 14.20.177(a) is amended to read: 17
367	367	(a) A school district may implement a layoff plan under this section if it is 18
368	368	necessary for the district to reduce the number of tenured teachers because 19
369	369	(1) school attendance in the district has decreased; or 20
370	370	(2) the basic need of the school district determined under 21
371	371	AS 14.17.410(b) [AS 14.17.410(b)(1)] decreases by three percent or more from the 22
372	372	previous year. 23
373	373	* Sec. 10. AS 43.23.220(d) is amended to read: 24
374	374	(d) On July 1 of each year, the commissioner shall 25
375	375	(1) determine the fund balance for the previously closed fiscal year, 26
376	376	including the earnings of the fund; and 27
377	377	(2) when the average market value for that fiscal year exceeds 28
378	378	$1,000,000,000, transfer 4.5 percent of the average fiscal-year-end market value of the 29
379	379	balance of the fund for the last five fiscal years, including the fiscal year just ended, 30
380	380	and including any unrealized gains and losses, to the Department of Education and 31 34-LS0336\A
381	381	HB 122 -12- HB0122a
382	382	New Text Underlined [DELETED TEXT BRACKETED]
383	383
384	384	Early Development for distribution as supplemental grants to school districts 1
385	385	according to the average daily membership for each district adjusted under 2
386	386	AS 14.17.410(b)(1) - (4) [AS 14.17.410(b)(1)(A) - (D)], subject to appropriation. 3
387	387	* Sec. 11. AS 43.23.230(c) is amended to read: 4
388	388	(c) Of the donations received in a year under (b) of this section, the legislature 5
389	389	shall appropriate 25 percent to the education endowment fund established in 6
390	390	AS 43.23.220 and shall appropriate 25 percent to the dividend raffle fund. The 7
391	391	legislature shall appropriate the remaining 50 percent of the donations received under 8
392	392	(b) of this section to the Department of Education and Early Development for 9
393	393	distribution as supplemental grants to school districts according to the average daily 10
394	394	membership for each district adjusted under AS 14.17.410(b)(1) - (4) 11
395	395	[AS 14.17.410(b)(1)(A) - (D)]. 12
396	396	* Sec. 12. AS 14.17.410(d), 14.17.410(e), and 14.17.410(f) are repealed. 13
397	397	* Sec. 13. This Act takes effect July 1, 2025. 14