HB 261

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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
1  "An Act relating to education funding; providing for an effective date by amending the
2  effective date of secs. 10, 11, 13, and 15, ch. 5, SLA 2025; and providing for an effective
3  date."
4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
5    * Section 1. AS 14.03.410(e) is amended to read:
6(e) A student in an early education program may not be counted in a district's
7ADM under AS 14.17.600 [AS 14.17.500] unless the department has approved the
8program.
9    * Sec. 2. AS 14.11.100(o) is amended to read:
10(o)     The total amount of school construction projects approved for
11reimbursement by the department under (a)(10) of this section
12(1) may not exceed $190,644,901; and
13(2) after June 30, 1998, and until July 1, 2006, shall be allocated as
14follows:
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1(A) $77,897,000 to projects in a municipality with a public
2school enrollment of 25,000 or more students in fiscal year 2000, as
3determined under former AS 14.17.500;
4(B) $14,571,000 to projects in a municipality with a public
5school enrollment of at least 15,000 but less than 25,000 students in fiscal year
62000, as determined under former AS 14.17.500;
7(C) $14,143,000 to projects in a municipality with a public
8school enrollment of at least 10,000 but less than 15,000 students in fiscal year
92000, as determined under former AS 14.17.500;
10(D) $7,429,000 to projects in a municipality with a public
11school enrollment of at least 7,500 but less than 10,000 students in fiscal year
122000, as determined under former AS 14.17.500;
13(E) $20,712,912 to projects in a municipality with a public
14school enrollment of at least 5,000 but less than 7,500 students in fiscal year
152000, as determined under former AS 14.17.500;
16(F)   $2,660,000 to projects in a municipality with a public
17school enrollment of at least 2,750 but less than 3,000 students in fiscal year
182000, as determined under former AS 14.17.500;
19(G) $454,000 to projects in a municipality with a public school
20enrollment of at least 2,400 but less than 2,750 students in fiscal year 2000, as
21determined under former AS 14.17.500;
22(H) $46,869,989 to projects in a municipality with a public
23school enrollment of at least 2,050 but less than 2,400 students in fiscal year
242000, as determined under former AS 14.17.500;
25(I) $329,000 to projects in a municipality with a public school
26enrollment of at least 1,700 but less than 1,750 students in fiscal year 2000, as
27determined under former AS 14.17.500;
28(J) $286,000 to projects in a municipality with a public school
29enrollment of at least 650 but less than 725 students in fiscal year 2000, as
30determined under former AS 14.17.500;
31(K) $519,000 to projects in a municipality with a public school
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1enrollment of at least 500 but less than 525 students in fiscal year 2000, as
2determined under former AS 14.17.500;
3(L)   $2,224,000 to projects in a municipality with a public
4school enrollment of at least 425 but less than 482 students in fiscal year 2000,
5as determined under former AS 14.17.500;
6(M) $2,550,000 to projects in a municipality with a public
7school enrollment of at least 290 but less than 305 students in fiscal year 2000,
8as determined under former AS 14.17.500.
9   * Sec. 3. AS 14.11.100(p) is amended to read:
10(p)    The total amount of school construction projects approved for
11reimbursement by the department under (a)(13) and (a)(14) of this section
12(1) may not exceed $177,256,000;
13(2) after June 30, 1999, and until October 31, 2006, shall be allocated
14as follows:
15(A) $61,925,000 to projects in a municipality with a public
16school enrollment of 45,000 or more students in fiscal year 2005, as
17determined under former AS 14.17.500;
18(B) $40,570,000 to projects in a municipality with a public
19school enrollment of at least 14,600 but less than 20,000 students in fiscal year
202005, as determined under former AS 14.17.500;
21(C) $20,000,000 to projects in a municipality with a public
22school enrollment of at least 10,000 but less than 14,600 students in fiscal year
232005, as determined under former AS 14.17.500;
24(D) $2,588,000 to projects in a municipality with a public
25school enrollment of at least 7,500 but less than 10,000 students in fiscal year
262005, as determined under former AS 14.17.500;
27(E)   $5,995,000 to projects in a municipality with a public
28school enrollment of at least 4,000 but less than 6,000 students in fiscal year
292005, as determined under former AS 14.17.500;
30(F)   $1,237,000 to projects in a municipality with a public
31school enrollment of at least 2,400 but less than 2,800 students in fiscal year
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12005, as determined under former AS 14.17.500;
2(G) $1,100,000 to projects in a municipality with a public
3school enrollment of at least 2,200 but less than 2,400 students in fiscal year
42005, as determined under former AS 14.17.500;
5(H) $7,164,000 to projects in a municipality with a public
6school enrollment of at least 1,300 but less than 1,500 students in fiscal year
72005, as determined under former AS 14.17.500;
8(I)   $1,260,000 to projects in a municipality with a public
9school enrollment of at least 740 but less than 757 students in fiscal year 2005,
10as determined under former AS 14.17.500;
11(J) $608,000 to projects in a municipality with a public school
12enrollment of at least 650 but less than 700 students in fiscal year 2005, as
13determined under former AS 14.17.500;
14(K) $32,000,000 to projects in a municipality with a public
15school enrollment of at least 500 but less than 600 students in fiscal year 2005,
16as determined under former AS 14.17.500;
17(L)   $2,809,000 to projects in a municipality with a public
18school enrollment of at least 370 but less than 390 students in fiscal year 2005,
19as determined under former AS 14.17.500.
20  * Sec. 4. AS 14.11.100(q) is amended to read:
21(q)    The total amount of school construction projects approved for
22reimbursement by the department under (a)(15) of this section
23(1) may not exceed $14,644,000;
24(2) after June 30, 1999, and until October 31, 2006, shall be allocated
25as follows:
26(A) $6,522,000 to projects in a municipality with a public
27school enrollment of at least 1,925 but less than 2,025 students in fiscal year
282005, as determined under former AS 14.17.500;
29(B) $8,122,000 to projects in a municipality with a public
30school enrollment of at least 398 but less than 400 students in fiscal year 2005,
31as determined under former AS 14.17.500.
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1   * Sec. 5. AS 14.16.050(a) is amended to read:
2(a)   The following provisions apply with respect to the operation and
3management of a state boarding school as if it were a school district:
4(1) requirements relating to school district operations:
5(A) AS 14.03.030 - 14.03.050 (defining the school term, day in
6session, and school holidays);
7(B)    AS 14.03.083 - 14.03.140 (miscellaneous provisions
8applicable to school district operations);
9(C)    regulations adopted by the board under authority of
10AS 14.07.020(a) that are applicable to school districts and their schools, unless
11the board specifically exempts state boarding schools from compliance with a
12regulation;
13(D) AS 14.12.150 (authorizing school districts to establish and
14participate in the services of a regional resource center);
15(E)   AS 14.14.050 (imposing the requirement of an annual
16audit);
17(F) AS 14.14.110 (authorizing cooperation with other school
18districts);
19(G)       AS 14.14.140(b)     (establishing   a     prohibition   on
20employment of a relative of the chief school administrator);
21(H)    AS 14.18 (prohibiting discrimination based on sex in
22public education);
23(2) requirements relating to the public school funding program and the
24receipt and expenditure of that funding:
25(A)    [AS 14.17.500 (RELATING TO STUDENT COUNT
26ESTIMATES); (B)] AS 14.17.505 (relating to school operating fund balances);
27(B) AS 14.17.505 - 14.17.910 [(C) AS 14.17.500 - 14.17.910]
28(setting out the procedure for payment of public school funding and imposing
29general requirements and limits on money paid);
30(3) requirements relating to teacher employment and retirement:
31(A) AS 14.14.105 and 14.14.107 (relating to sick leave);
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1(B) AS 14.20.095 - 14.20.215 (relating to the employment and
2tenure of teachers);
3(C)    AS 14.20.280 - 14.20.350 (relating to sabbatical leave
4provisions for teachers);
5(D)       AS 23.40.070 - 23.40.260 (authorizing collective
6bargaining by certificated employees), except with regard to teachers who are
7administrators and except that the board may delegate some or all of its
8responsibilities under those statutes;
9(E)    AS 14.25 (provisions regarding the teachers' retirement
10system);
11(4) requirements relating to students and educational programs:
12(A) AS 14.30.180 - 14.30.350 (relating to educational services
13for children with disabilities);
14(B) AS 14.30.360 - 14.30.370 (establishing health education
15program standards);
16(C)      AS 14.30.400 - 14.30.410 (relating to bilingual and
17bicultural education).
18  * Sec. 6. AS 14.17.410(b) is amended to read:
19(b) Public school funding consists of state aid, a required local contribution,
20and eligible federal impact aid determined as follows:
21(1) state aid equals basic need minus a required local contribution and
2290 percent of eligible federal impact aid for that fiscal year; basic need equals the sum
23obtained under (D) of this paragraph, multiplied by the base student allocation set out
24in AS 14.17.470; district adjusted ADM is calculated as follows:
25(A) the ADM of each school in the district is calculated by
26applying the school size factor to the student count as set out in AS 14.17.450;
27for purposes of this subparagraph and except as provided in
28AS 14.17.450(b),       calculation       of   a   school's   student   count   under
29AS 14.17.450 for a fiscal year is adjusted to the greater of
30(i)   the school's prior three-year average ADM
31reported in the previous fiscal year under AS 14.17.600;
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1(ii) the school's ADM reported in the previous fiscal
2year under AS 14.17.600; or
3(iii) the school's ADM reported in the current fiscal
4year under AS 14.17.600;
5(B)    the number obtained under (A) of this paragraph is
6multiplied by the district cost factor described in AS 14.17.460;
7(C)    the ADMs of each school in a district, as adjusted
8according to (A) and (B) of this paragraph, are added; the sum is then
9multiplied by the special needs factor set out in AS 14.17.420(a)(1) and the
10secondary school vocational and technical instruction funding factor set out in
11AS 14.17.420(a)(3);
12(D)     the number obtained for intensive services under
13AS 14.17.420(a)(2) and the number obtained for correspondence study under
14AS 14.17.430 are added to the number obtained under (C) of this paragraph or
15under (E) [(H)] and (F) [(I)] of this paragraph;
16(E)      [NOTWITHSTANDING  (A)    -     (C)   OF   THIS
17PARAGRAPH, IF A SCHOOL DISTRICT'S ADM ADJUSTED FOR
18SCHOOL SIZE UNDER (A) OF THIS PARAGRAPH DECREASES BY
19FIVE PERCENT OR MORE FROM ONE FISCAL YEAR TO THE NEXT
20FISCAL YEAR, THE SCHOOL DISTRICT MAY USE THE LAST FISCAL
21YEAR BEFORE THE DECREASE AS A BASE FISCAL YEAR TO
22OFFSET THE DECREASE, ACCORDING TO THE FOLLOWING
23METHOD:
24(i) FOR THE FIRST FISCAL YEAR AFTER THE
25BASE       FISCAL       YEAR       DETERMINED  UNDER       THIS
26SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED
27FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS
28PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM
29ADJUSTED FOR SCHOOL SIZE, PLUS 75 PERCENT OF THE
30DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR
31SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE
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1FIRST FISCAL YEAR AFTER THE BASE FISCAL YEAR;
2(ii) FOR THE SECOND FISCAL YEAR AFTER THE
3BASE     FISCAL    YEAR      DETERMINED        UNDER     THIS
4SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED
5FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS
6PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM
7ADJUSTED FOR SCHOOL SIZE, PLUS 50 PERCENT OF THE
8DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR
9SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE
10SECOND FISCAL YEAR AFTER THE BASE FISCAL YEAR;
11(iii) FOR THE THIRD FISCAL YEAR AFTER THE
12BASE     FISCAL    YEAR      DETERMINED        UNDER     THIS
13SUBPARAGRAPH, THE SCHOOL DISTRICT'S ADM ADJUSTED
14FOR SCHOOL SIZE DETERMINED UNDER (A) OF THIS
15PARAGRAPH IS CALCULATED AS THE DISTRICT'S ADM
16ADJUSTED FOR SCHOOL SIZE, PLUS 25 PERCENT OF THE
17DIFFERENCE IN THE DISTRICT'S ADM ADJUSTED FOR
18SCHOOL SIZE BETWEEN THE BASE FISCAL YEAR AND THE
19THIRD FISCAL YEAR AFTER THE BASE FISCAL YEAR;
20(F)   THE METHOD ESTABLISHED IN (E) OF THIS
21PARAGRAPH IS AVAILABLE TO A SCHOOL DISTRICT FOR THE
22THREE FISCAL YEARS FOLLOWING THE BASE FISCAL YEAR
23DETERMINED UNDER (E) OF THIS PARAGRAPH ONLY IF THE
24DISTRICT'S ADM ADJUSTED FOR SCHOOL SIZE DETERMINED
25UNDER (A) OF THIS PARAGRAPH FOR EACH FISCAL YEAR IS LESS
26THAN THE DISTRICT'S ADM ADJUSTED FOR SCHOOL SIZE IN THE
27BASE FISCAL YEAR;
28(G)   THE METHOD ESTABLISHED IN (E) OF THIS
29PARAGRAPH DOES NOT APPLY TO A DECREASE IN THE DISTRICT'S
30ADM ADJUSTED FOR SCHOOL SIZE RESULTING FROM A LOSS OF
31ENROLLMENT THAT OCCURS AS A RESULT OF A BOUNDARY
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1CHANGE UNDER AS 29;
2(H)] notwithstanding (A) - (C) of this paragraph, if one or more
3schools close and consolidate with one or more other schools in the same
4community and district and, as a result of the consolidation, basic need
5generated by the district's ADM of the consolidated schools as adjusted under
6(A) - (C) of this paragraph decreases, the district may use the last fiscal year
7before the consolidation as the base fiscal year to offset that decrease for the
8first four fiscal years following consolidation according to the following
9method:
10(i) for the first two fiscal years after the base fiscal year,
11the district's ADM of the consolidated schools as adjusted under (A) -
12(C) of this paragraph is calculated by dividing the sum of the district's
13ADM of the consolidated schools as adjusted under (A) - (C) of this
14paragraph for the base fiscal year by the sum of the district's ADM of
15the consolidated schools for the base fiscal year without adjustment,
16and subtracting the quotient obtained by dividing the district's ADM of
17the consolidated schools for the current fiscal year as adjusted under
18(A) - (C) of this paragraph by the sum of the district's ADM of the
19consolidated schools for the current fiscal year without adjustment,
20multiplying that number by the sum of the district's ADM of the
21consolidated schools for the current fiscal year without adjustment, and
22adding that number to the sum of the district's ADM of the consolidated
23schools for the current fiscal year as adjusted under (A) - (C) of this
24paragraph;
25(ii) for the third fiscal year after the base fiscal year, the
26district's ADM of the consolidated schools as adjusted under (A) - (C)
27of this paragraph is calculated by dividing the sum of the district's
28ADM of the consolidated schools as adjusted under (A) - (C) of this
29paragraph for the base fiscal year by the sum of the district's ADM of
30the consolidated schools for the base fiscal year without adjustment,
31and subtracting the quotient obtained by dividing the sum of the
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1district's ADM of the consolidated schools for the current fiscal year as
2adjusted under (A) - (C) of this paragraph by the sum of the district's
3ADM of the consolidated schools for the current fiscal year,
4multiplying that number by the sum of the district's ADM of the
5consolidated schools for the current fiscal year without adjustment,
6multiplying that number by 66 percent, and adding that number to the
7sum of the district's ADM of the consolidated schools for the current
8fiscal year as adjusted under (A) - (C) of this paragraph;
9(iii) for the fourth fiscal year after the base fiscal year,
10the 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
12ADM of the consolidated schools as adjusted under (A) - (C) of this
13paragraph for the base fiscal year by the sum of the district's ADM of
14the consolidated schools for the base fiscal year without adjustment,
15and subtracting the quotient obtained by dividing the sum of the
16district's ADM of the consolidated schools for the current fiscal year as
17adjusted under (A) - (C) of this paragraph by the sum of the district's
18ADM of the consolidated schools for the current fiscal year,
19multiplying that number by the sum of the district's ADM of the
20consolidated schools for the current fiscal year without adjustment,
21multiplying that number by 33 percent, and adding that number to the
22sum of the district's ADM of the consolidated schools for the current
23fiscal year as adjusted under (A) - (C) of this paragraph;
24(iv) to calculate the district's basic need for each fiscal
25year, the number obtained through the calculation in (i), (ii), or (iii) of
26this subparagraph is added to the number obtained under (C) of this
27paragraph for the remainder of the district;
28(F) [(I)] if the basic need calculated under (E)(i) - (iii) [(H)(i) -
29(iii)] of this paragraph for one of the first four fiscal years after consolidation is
30less than the basic need calculated under (A) - (C) of this paragraph for that
31fiscal year, the basic need may not be adjusted under (E) [(H)] of this
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1paragraph for that fiscal year;
2(G) [(J)] a district may not offset a decrease under (E) [(H)] of
3this paragraph if
4[(i)] a new facility is constructed in the district for the
5consolidation;
6(H) [OR
7(ii) THE DISTRICT OFFSET A DECREASE UNDER
8(E) OF THIS PARAGRAPH IN THE SAME FISCAL YEAR;
9(K)] a district that offsets a decrease under (E) [(H)] of this
10paragraph may not reopen a school that was closed for consolidation in the
11district until
12(i) seven or more years have passed since the school
13closure; and
14(ii) the district provides evidence satisfactory to the
15department that the schools affected by the consolidation are over
16capacity;
17(I) [(L)] a district may not reopen and reconsolidate a school
18that was consolidated in the district more than once every seven years for
19purposes of the calculations made under (E) [(H)] of this paragraph;
20(J) [(M)] a district offsetting a decrease under (E) [(H)] of this
21paragraph shall provide the department with the list of schools participating in
22the consolidation and the corresponding ADM;
23(2) the required local contribution of a city or borough school district is
24the equivalent of a 2.65 mill tax levy on the full and true value of the taxable real and
25personal property in the district as of January 1 of the second preceding fiscal year, as
26determined by the Department of Commerce, Community, and Economic
27Development under AS 14.17.510 and AS 29.45.110, not to exceed 45 percent of a
28district's basic need for the preceding fiscal year as determined under (1) of this
29subsection.
30  * Sec. 7. AS 14.17.420(a) is amended to read:
31(a) As a component of public school funding, a district is eligible for special
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1needs and secondary school vocational and technical instruction funding and may be
2eligible for intensive services funding as follows:
3(1) special needs funding is available to a district to assist the district
4in providing special education, gifted and talented education, vocational education,
5and bilingual education services to its students; a special needs funding factor of 1.20
6shall be applied as set out in AS 14.17.410(b)(1);
7(2) in addition to the special needs funding for which a district is
8eligible under (1) of this subsection, a district is eligible for intensive services funding
9[FOR EACH SPECIAL EDUCATION STUDENT WHO NEEDS AND RECEIVES
10INTENSIVE SERVICES AND IS ENROLLED ON THE LAST DAY OF THE
11COUNT PERIOD; FOR EACH SUCH STUDENT, INTENSIVE SERVICES
12FUNDING IS] equal to the intensive student count multiplied by 13; the intensive
13student count equals the greater of the following:
14(A) the number of special education students who needed
15and received intensive services and were enrolled on the last day of the
16count period conducted in the previous fiscal year under AS 14.17.600(a);
17(B) the number of special education students who needed
18and received intensive services and were enrolled on the last day of the
19count period conducted in the current fiscal year under AS 14.17.600(a);
20(C) the number of special education students who needed
21and received intensive services and were enrolled on February 15 of the
22current fiscal year, if a district chooses to conduct a second student count
23for the current fiscal year under this subparagraph;
24(3) in addition to the special needs and intensive services funding
25available under (1) and (2) of this subsection, secondary school vocational and
26technical instruction funding is available to assist districts in providing vocational and
27technical instruction to students who are enrolled in a secondary school; a secondary
28school vocational and technical instruction funding factor of 1.015 shall be applied as
29set out in AS 14.17.410(b)(1); in this paragraph, "vocational and technical instruction"
30excludes costs associated with
31(A) administrative expenses; and
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1(B)   instruction in general literacy, mathematics, and job
2readiness skills.
3   * Sec. 8. AS 14.17.600(a) is amended to read:
4(a) Within two weeks after the end of the 20-school-day period ending the
5fourth Friday in October, each district shall transmit a report to the department that,
6under regulations adopted by the department, reports the district's [ITS] ADM for
7that count period, the prior three-year average ADM for each school in the
8district, student count information the department determines is necessary to
9calculate school ADMs under AS 14.17.450 and community and charter school
10ADMs that relate to the district under AS 14.17.905, and other student count
11information that [WILL AID] the department shall use to determine the amount of
12the district's [IN MAKING A DETERMINATION OF ITS] state aid under the public
13school funding program for the succeeding fiscal year. The district shall also
14include in the district's report the number of special education students who
15needed and received intensive services and are enrolled on the last day of the
16count period, which the department shall use to determine the amount of the
17district's intensive services funding under AS 14.17.420(a)(2)(A) for the
18succeeding fiscal year and, if applicable, additional intensive services funding
19under AS 14.17.420(a)(2)(B) for the current fiscal year. For centralized
20correspondence study, the October report shall be based on the period from July 1
21through the fourth Friday in October. The department may make necessary corrections
22in the report submitted and shall notify the district of changes made. The
23commissioner shall notify the governor of additional appropriations the commissioner
24estimates to be necessary to fully finance the public school funding program for the
25succeeding [CURRENT] fiscal year.
26  * Sec. 9. AS 14.17.600 is amended by adding new subsections to read:
27(c) Part-time students shall be included in the student count data in accordance
28with regulations adopted by the department.
29(d)    When reporting a district's ADM, a part-time student who is a
30correspondence student may not be counted as more than one full-time equivalent
31student.
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1(e) Except as provided in (f) of this section, a student in a district-wide early
2education program provided by a district and approved by the department under
3AS 14.07.020(a)(8) is counted as a full-time equivalent student.
4(f) A district may not include in a school's ADM students who are four and
5five years of age if the students are enrolled in an early education program that
6receives state or federal funding other than funding under this chapter.
7(g) For purposes of AS 14.09.010, a student in a district-wide early education
8program provided by a district and approved by the department under
9AS 14.07.020(a)(8) is counted as a full-time equivalent student.
10  * Sec. 10. AS 14.17.600(e), enacted by sec. 9 of this Act, is amended to read:
11(e)   A district may not include in the district's ADM [EXCEPT AS
12PROVIDED IN (f) OF THIS SECTION,] a student in a district-wide early education
13program provided by the [A] district [AND APPROVED BY THE DEPARTMENT
14UNDER AS 14.07.020(a)(8) IS COUNTED AS A FULL-TIME EQUIVALENT
15STUDENT].
16  * Sec. 11. AS 14.17.610(a) is amended to read:
17(a) Except as provided in (d) of this section, the [THE] department shall
18determine the state aid for each school district for [IN] a fiscal year on the basis of the
19district's student count data reported in the previous fiscal year under AS 14.17.600.
20On or before the 15th day of each month [OF THE FIRST NINE MONTHS] of each
21fiscal year, one-twelfth of each district's state aid shall be distributed on the basis of
22the data reported under AS 14.17.600 [FOR THE PRECEDING FISCAL YEAR. ON
23OR BEFORE THE 15TH DAY OF EACH OF THE LAST THREE MONTHS OF
24EACH FISCAL YEAR, ONE-THIRD OF THE BALANCE OF EACH DISTRICT'S
25STATE AID SHALL BE DISTRIBUTED, AFTER THE BALANCE HAS BEEN
26RECOMPUTED ON THE BASIS OF STUDENT COUNT AND OTHER DATA
27REPORTED FOR THE CURRENT FISCAL YEAR].
28  * Sec. 12. AS 14.17.610 is amended by adding new subsections to read:
29(d) If a district is entitled to additional funding because of an increase in a
30school's student count under AS 14.17.410(b)(1)(A)(iii) or an increase in a district's
31intensive student count under AS 14.17.420(a)(2)(B) or (C), the department shall
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1(1) distribute to the district the additional funding necessary to fully
2fund the previous months of the fiscal year on the basis of the new student count on or
3before the 15th day of the month following the student count;
4(2) distribute the district's state aid for the remaining months of the
5fiscal year on the basis of the new student count.
6(e) The department may not reduce the amount of a district's state aid for a
7fiscal year on the basis that the department distributed additional funding to another
8district for the fiscal year under (d) of this section.
9   * Sec. 13. AS 14.17.905(a) is amended to read:
10(a) For purposes of this chapter, the determination of the number of schools in
11a district is subject to the following:
12(1) a community with an ADM of at least 10, but not more than 100,
13shall be counted as one school;
14(2) a community with an ADM of at least 101, but not more than 425,
15shall be counted as
16(A) one elementary school, which includes those students in
17grades kindergarten through six and, except as provided in AS 14.17.600
18[AS 14.17.500], in an early education program provided by a school district
19and approved by the department under AS 14.07.020(a)(8); and
20(B) one secondary school, which includes students in grades
21seven through 12;
22(3) in a community with an ADM of greater than 425, each facility that
23is administered as a separate school shall be counted as one school [, EXCEPT THAT
24EACH ALTERNATIVE SCHOOL WITH AN ADM OF LESS THAN 175 SHALL
25BE COUNTED AS A PART OF THE SCHOOL IN THE DISTRICT WITH THE
26HIGHEST ADM].
27  * Sec. 14. AS 14.17.905 is amended by adding a new subsection to read:
28(d) For purposes of determining a community's ADM for a fiscal year under
29(a) and (c) of this section, or a charter school's ADM for a fiscal year under (b) of this
30section, the ADM is the greater of
31(1) the community's or charter school's prior three-year average ADM
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1reported in the previous fiscal year under AS 14.17.600;
2(2) the community's or charter school's ADM reported in the previous
3fiscal year under AS 14.17.600; or
4(3) the community's or charter school's ADM reported in the current
5fiscal year under AS 14.17.600.
6   * Sec. 15. AS 14.17.990 is amended by adding a new paragraph to read:
7(8) "prior three-year average ADM" means the number resulting from
8combining the ADM counts from the three student count periods immediately
9preceding a student count period conducted under AS 14.17.600(a) for a fiscal year
10and dividing that sum by three.
11  * Sec. 16. Section 47, ch. 40, SLA 2022, is amended to read:
12Sec.   47.   AS 14.03.120(h),      14.03.410,   14.03.420;   [AS 14.17.500(e),
1314.17.500(f), 14.17.500(g);] AS 14.20.020(l); AS 14.30.760, 14.30.765, 14.30.770,
1414.30.775, 14.30.780, and 14.30.800 are repealed.
15  * Sec. 17. AS 14.17.500 is repealed.
16  * Sec. 18. AS 14.17.600(f) and 14.17.600(g) are repealed.
17  * Sec. 19. Section 19, ch. 5, SLA 2025, is repealed.
18  * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to
19 read:
20TRANSITION:  HOLD     HARMLESS.  Notwithstanding     the   repeal    of
21 AS 14.17.410(b)(1)(E) - (G) by sec. 6 of this Act, a school district that meets the requirements
22 on July 1, 2026, to employ the method for calculating the school district's ADM adjusted for
23 school size as provided under AS 14.17.410(b)(1)(E) - (G), as those subparagraphs read on
24 the day before the effective date of sec. 6 of this Act, may continue to calculate the school
25 district's ADM adjusted for school size according to AS 14.17.410(b)(1)(E) - (G), as those
26 subparagraphs read on the day before the effective date of sec. 6 of this Act, until the school
27 district is no longer eligible to calculate the school district's ADM adjusted for school size
28 under AS 14.17.410(b)(1)(E) - (G), as those subparagraphs read on the day before the
29 effective date of sec. 6 of this Act. In this section, "ADM" has the meaning given in
30 AS 14.17.990.
31  * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to
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1  read:
2TRANSITION: ADM CALCULATION. (a) Notwithstanding AS 14.17.420(a)(2)(A),
3  as amended by sec. 7 of this Act, for the fiscal year ending June 30, 2027, if student count
4  data is unavailable to calculate the number of special education students who needed and
5  received intensive services and were enrolled on the last day of the count period conducted
6  under AS 14.17.600(a), a district shall use student count data that is applicable to the fiscal
7  year ending June 30, 2026, obtained under AS 14.17.420(a), as that section read on the day
8  before the effective date of sec. 7 of this Act.
9(b)    Notwithstanding AS 14.17.600(a), as amended by sec. 8 of this Act,
10 AS 14.17.905(d), added by sec. 14 of this Act, and AS 14.17.990(8), added by sec. 15 of this
11 Act, for the fiscal years ending June 30, 2027, June 30, 2028, and June 30, 2029, if student
12 count data is unavailable to calculate a school's prior three-year average ADM under
13 AS 14.17.600(a), as amended by sec. 8 of this Act, or a community's or charter school's prior
14 three-year average ADM under AS 14.17.905(d), added by sec. 14 of this Act, a school,
15 community, or charter school, as applicable, shall, for each year of the prior three-year
16 average ADM for which data is unavailable, use student count data that is applicable to that
17 year obtained under AS 14.17.600, as that section read on the day before the effective date of
18 sec. 8 of this Act. In this subsection, "ADM" has the meaning given in AS 14.17.990.
19  * Sec. 22. Section 20, ch. 5, SLA 2025, is amended to read:
20Sec. 20. Sections [IF SECS.] 10, 11, 13, and 15, ch. 5, SLA 2025, [OF THIS
21ACT] take effect July 1, 2026 [, THEY TAKE EFFECT 181 DAYS AFTER THE
22EFFECTIVE DATE OF THE SECTION OF SB 113 OR A SUBSTANTIALLY
23SIMILAR       BILL     THAT      EFFECTUATES        THE     SALES      FACTOR,       AS
24DETERMINED UNDER AS 43.19 (MULTISTATE TAX COMPACT), AS THE
25APPORTIONMENT FACTOR FOR HIGHLY DIGITIZED BUSINESSES].
26  * Sec. 23. Sections 10 and 18 of this Act take effect on the effective date of sec. 47, ch. 40,
27 SLA 2022.
28  * Sec. 24. Except as provided in sec. 23 of this Act, this Act takes effect July 1, 2026.
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