SB 46 — An Act relating to education funding; relating to the public education fund; relating to the base student allocation; and providing for an effective date.

34-LS0176\I34-LS0176\A SPONSOR SUBSTITUTE FOR SENATE BILL NO.

2/28/251/22/25 Referred:

The department shall reduce the amount of state aid under AS 14.17.41014.17.410(b) [AS 14.17.400] for which a school district may qualify by the amount, if any, paid by the department under (b) of this section.

(1) state aid equals thebasic amountneed appropriatedminus bya therequired legislaturelocal forcontribution SB0046Band SB0046A -1- SSSBSB 46 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\I34-LS0176\A public90 schoolpercent funding;of eligible federal impact aid for that fiscal year;

except as otherwise provided in this section, a district's basic need equals the amount ofappropriated by the district'slegislature for state aidaid, calculateddistributed underproportionately (g)to ofa thisdistrict sectionaccording plusto the district'sdistrict [MINUSadjusted A]ADM requiredof localthe contributiondistrict and[SUM 90OBTAINED percentUNDER of(D) theOF district'sTHIS eligiblePARAGRAPH, federalMULTIPLIED impactBY aidTHE forBASE thatSTUDENT fiscalALLOCATION year;SET OUT IN AS 14.17.470];

[BASIC NEED EQUALS THE SUM OBTAINED UNDER (D) OF THIS PARAGRAPH, MULTIPLIED BY THE BASE STUDENT ALLOCATION SET OUT IN AS 14.17.470;] district adjusted ADM is calculated as follows:

SSSB 46 -2- SB0046B New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\I (ii) for the second fiscal year after the base fiscal year SB 46 -2- SB0046A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\A determined under this subparagraph, the school district's ADM adjusted for school size determined under (A) of this paragraph is calculated as the district's ADM adjusted for school size, plus 50 percent of the difference in the district's ADM adjusted for school size between the base fiscal year and the second fiscal year after the base fiscal year;

(i) for the first two fiscal years after the base fiscal year, the district's ADM of the consolidated schools as adjusted under (A) - SB0046B -3- SSSB 46 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\I (C) of this paragraph is calculated by dividing the sum of the district's SB0046A -3- SB 46 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\A ADM of the consolidated schools as adjusted under (A) - (C) of this paragraph for the base fiscal year by the sum of the district'sADM of the consolidated schools for the base fiscal year without adjustment, and subtracting the quotient obtained by dividing the district's ADM of the consolidated schools for the current fiscal year as adjusted under (A) - (C) of this paragraph by the sum of the district's ADM of the consolidated schools for the current fiscal year without adjustment, multiplying that number by the sum of the district's ADM of the consolidated schools for the current fiscal year without adjustment, and adding that number to the sum of the district's ADM of the consolidated schools for the current fiscal year as adjusted under (A) - (C) of this paragraph;

(iii) for the fourth fiscal year after the base fiscal year, the district's ADM of the consolidated schools as adjusted underur (A) - (C) of this paragraph is calculated by dividing the sum of the district's SSSB 46 -4- SB0046B New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\I ADM of the consolidated schools as adjusted under (A) - (C) of this SB 46 -4- SB0046A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\A paragraph for the base fiscal year by the sum of the district'sADM of the consolidated schools for the base fiscal year without adjustment, and subtracting the quotient obtained by dividing the sum of the district's ADM of the consolidated schools for the current fiscal year as adjusted under (A) - (C) of this paragraph by the sum of the district's ADM of the consolidated schools for the current fiscal year, multiplying that number by the sum of the district's ADM of the consolidated schools for the current fiscal year without adjustment, multiplying that number by 33 percent, and adding that number to the sum of the district's ADM of the consolidated schools for the current fiscal year as adjusted under (A) - (C) of this paragraph;

and SB0046B(ii) the district provides evidence satisfactory to the SB0046A -5- SSSBSB 46 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\I34-LS0176\A (ii) the district provides evidence satisfactory to the department that the schools affected by the consolidation are over capacity;

AS 14.17.410 is amended by adding a new subsection to read:

(g) The department shall distribute state aid to each district.

The department shall determine the amount of a district's state aid by (1) dividing the district adjusted ADM of the district by the combined total of the district adjusted ADMs of all districts in the state;

(2) multiplying the number obtained under (1) of this subsection by the combined total of (A) state aid appropriated by the legislature;

(B) the total required local contributions for all districts in the state;

and (C) 90 percent of eligible federal impact aid received by all districts in the state for that fiscal year;

and (3) subtracting the district's required local contribution and 90 percent of the district's eligible federal impact aid for that fiscal year from the number obtained under (2) of this subsection.

SSSB 46 -6- SB0046B New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\I * Sec.

4.

5.4.

(2) MULTIPLYING THE NUMBER OBTAINED UNDER (1) OF SB 46 -6- SB0046A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\A THIS SUBSECTION BY THE SPECIAL NEEDS FACTOR IN AS 14.17.420(a)(1) AND THE SECONDARY SCHOOL VOCATIONAL AND TECHNICAL INSTRUCTION FUNDING FACTOR SET OUT IN AS 14.17.420(a)(3) AND MULTIPLYING THAT PRODUCT BY THE BASE STUDENT ALLOCATION;

6.5.

(a) A district shall prepare and submit to the department by November 5 of each fiscal year, in the manner and on forms prescribed by the department, an estimate of its ADM and other student count data, including per school student count data, for the succeeding fiscal year upon which computations can be made to estimate the amount of state aid for which the district may be eligible under AS 14.17.41014.17.410(b) SB0046B -7- SSSB 46 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\I [AS 14.17.400] in the succeeding fiscal year.

7.6.

(b) Distribution of state aid under (a) of this section shall be made as required under AS 14.17.410(g)14.17.410. [AS 14.17.410].

8.7.

IF THE AMOUNT APPROPRIATED TO THE FUND FOR THE PURPOSES OF THIS CHAPTER IS INSUFFICIENT TO MEET THE ALLOCATIONS AUTHORIZED SB0046A -7- SB 46 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\A UNDER AS 14.17.400 - 14.17.470 FOR A FISCAL YEAR, STATE AID SHALL BE REDUCED ACCORDING TO AS 14.17.400(b)].

9.8.

SSSB 46 -8- SB0046B New Text Underlined [DELETED TEXT BRACKETED] 34-LS0176\I (v) appropriations of income of the Alaska permanent fund (art.

10.9.

AS 37.07.02014.17.300, is14.17.400, amended14.17.470, by14.17.480(b), addingand a14.17.490(c) neware subsectionrepealed. to read:

(h) On December 15 and March 15 of each year, the governor shall (1) for information purposes only, adjust the total amount of appropriations enacted for public school education in the state for the current fiscal year in proportion to changes in the Consumer Price Index for all urban consumers for urban Alaska during the previous calendar year, as determined by the United States Department of Labor, Bureau of Labor Statistics;

the March 15 calculation must include supplemental appropriations enacted for the current fiscal year on or before February 28;

in this paragraph, "public school" does not include the University of Alaska or another postsecondary institution;

(2) publish the amount adjusted for inflation in (1) of this subsection on the Internet website of the Office of the Governor;

and (3) report the amount adjusted for inflation in (1) of this subsection to the senate secretary and the chief clerk of the house of representatives and notify the legislature that the amount is available.

11.10.

AS 14.17.300, 14.17.400, 14.17.410(a), 14.17.470, 14.17.480(b), and 14.17.490(c) are repealed.

* Sec.

12.