SB 267

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                                    SENATE BILL NO. 267
                    IN THE LEGISLATURE OF THE STATE OF ALASKA
                   THIRTY-FOURTH LEGISLATURE - SECOND SESSION
 BY SENATOR BJORKMAN
 Introduced: 2/23/26
 Referred: Education, Finance
                                            A BILL
                                  FOR AN ACT ENTITLED
1  "An Act relating to powers and duties of the Legislative Budget and Audit Committee;
2  relating to public school financial information and audits; and establishing a public
3  school financial data Internet website."
4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
5    * Section 1. AS 14.03.078(a) is amended to read:
6(a) The department shall provide to the legislature and school districts by
7February 15 of each year by electronic means an annual report regarding the progress
8of each school and school district toward high academic performance by all students.
9The report required under this section must include
10(1) information described under AS 14.03.120;
11(2) progress of the department
12(A) toward implementing the school accountability provisions
13of AS 14.03.123; and
14(B) in assisting high schools to become accredited;
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1(3) a description of the resources provided to each school and school
2district for coordinated school improvement activities and staff training in each school
3and school district;
4(4)     each school district's and each school's progress in aligning
5curriculum with state education performance standards;
6(5) a description of the efforts by the department to assist a public
7school or district that receives a low performance designation under AS 14.03.123;
8(6) a description of intervention efforts by each school district and
9school for students who are not meeting state performance standards;
10(7) the number and percentage of turnover in certificated personnel and
11superintendents;
12(8)     a summary of the categories of certificated administrative
13employees employed by each school district that includes the ratio of
14(A)   the number of certificated administrative employees in
15each category employed by each school district compared to the number of
16students enrolled in the school district on October 1 of the previous year;
17(B) the total number of certificated administrative employees
18employed by each school district compared to the total number of teachers
19employed by the school district on October 1 of the previous year; and
20(C) the total number of teachers employed by each school
21district compared to the total number of students enrolled in the school district
22on October 1 of the previous year;
23(9) the progress made to implement the reading intervention programs
24established under AS 14.30.760 - 14.30.780, including data on how school districts are
25using in-service days for culturally responsive professional development in reading
26instruction; [AND]
27(10) the effectiveness and participation rates of the parents as teachers
28program established under AS 14.03.420, including measures of efficiency and
29effectiveness that demonstrate the effects of the program on school readiness; and
30(11) a link to the public school financial data Internet website of
31the Legislative Budget and Audit Committee established under AS 24.20.207.
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1   * Sec. 2. AS 14.14.050(a) is amended to read:
2(a) The school board in each school district shall, before October 1 of each
3year, provide for an audit of all school accounts for the school year ending the
4preceding June 30. To make the audit the school board shall contract with a public
5accountant who has no personal interest, direct or indirect, in the fiscal affairs of the
6district. One certified copy of the audit shall be filed with the Legislative Budget and
7Audit Committee, one certified copy shall be filed with the commissioner, and one
8certified copy shall be posted in a public place at the principal administrative office of
9the district.
10  * Sec. 3. AS 14.14.050(b) is amended to read:
11(b)     The audit shall conform in form to requirements established by the
12Legislative Budget and Audit Committee. The Legislative Budget and Audit
13Committee shall inform the commissioner if a school district fails to file a
14certified copy of the audit with the Legislative Budget and Audit Committee
15[COMMISSIONER]. The commissioner shall withhold all payments of state funds
16after November 15 to a school district that fails to file a certified copy of the audit with
17the Legislative Budget and Audit Committee [DEPARTMENT].
18  * Sec. 4. AS 14.14.050(c) is amended to read:
19(c) The Legislative Budget and Audit Committee [COMMISSIONER] may
20provide for a reaudit or an audit check in a school district if [IN] the Legislative
21Budget and Audit Committee determines [COMMISSIONER'S JUDGMENT] it is
22necessary to substantiate the reported expenditures.
23  * Sec. 5. AS 14.17.505 is amended to read:
24Sec. 14.17.505. Fund balance in school operating fund. (a) A district may
25not accumulate in a fiscal year an unreserved portion of its year-end fund balance in its
26school operating fund, as categorized by the uniform revenue and expenditure
27fund codes and function codes described in AS 24.20.207(a)(1)(B) [DEFINED BY
28DEPARTMENT REGULATIONS], that is greater than 10 percent of its expenditures
29for that fiscal year.
30(b) The Legislative Budget and Audit Committee [DEPARTMENT] shall
31review each district's annual audit under AS 14.14.050 for the preceding fiscal year to
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1ascertain its year-end operating fund balance. The Legislative Budget and Audit
2Committee shall determine the amount by which the unreserved portion of that
3balance exceeds the amount permitted in (a) of this section, and shall inform the
4department of the amount. The department shall deduct the amount [BE
5DEDUCTED] from the state aid that would otherwise be paid to the district in the
6current fiscal year.
7   * Sec. 6. AS 24.20 is amended by adding a new section to read:
8Sec. 24.20.207. Public school financial data Internet website. (a) The
9Legislative Budget and Audit Committee shall develop, operate, and maintain a
10searchable Internet website that provides financial information available from each
11school district's annual audit filed under AS 14.14.050(a). The committee shall, not
12later than February 15 of each year, provide on the Internet website, at a minimum,
13(1) financial information from the audits for each of the preceding 10
14fiscal years; the financial information must be
15(A) provided in the form of tables, charts, graphs, or other
16formats that are easily understood;
17(B) categorized using uniform revenue and expenditure fund
18codes and function codes; and
19(C) sortable by fiscal year, school district, school, fund code,
20and function code;
21(2)    reference materials to assist the public in understanding the
22financial information provided on the website, including a description of the fund
23codes and function codes used;
24(3) a comprehensive report of each school district's operating fund
25budget and actual operating fund expenditures, including
26(A) the committee's determination of the school district's year-
27end operating fund balance under AS 14.17.505(b) and the amount by which
28the unreserved portion of that balance exceeds the amount permitted under
29AS 14.17.505(a);
30(B) all reserved or committed funds, including encumbrances,
31inventory, and prepaid expenses; and
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1(C)    funds held in reserve for self-insurance or risk
2management; and
3(4) a tool that allows a user of the Internet website to compare
4(A)    the school district's operating fund expenditures by
5function code;
6(B)   a school's per pupil expenditures with the per pupil
7expenditures of other schools in a district; and
8(C) the school district's operating fund expenditures
9(i) for instructional functions with the school district's
10operating fund expenditures for noninstructional functions; and
11(ii) for certificated personnel with the school district's
12operating fund expenditures for classified personnel.
13(b) The uniform revenue and expenditure fund codes and function codes
14described in (a)(1)(B) of this section must, at a minimum, categorize the following
15costs by specific fund code or function code:
16(1) district administration, including specific fund codes and function
17codes for
18(A) executive administration;
19(B) business services; and
20(C) centralized data processing;
21(2) technology, including specific fund codes and function codes for
22(A) hardware;
23(B) software licensing;
24(C) instructional technology support; and
25(D) infrastructure maintenance;
26(3) utilities, including specific fund codes and function codes for
27(A) heating oil;
28(B) electricity;
29(C) water; and
30(D) sewer;
31(4) building maintenance, including specific fund codes and function
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1codes for
2(A) routine repairs;
3(B) custodial services;
4(C) groundskeeping; and
5(D) long-term facility preservation efforts; and
6(5) operations, including specific fund codes and function codes for
7(A) employee base salaries;
8(B) the school district's contribution to employee health care
9insurance premiums;
10(C) the school district's contribution to employee health savings
11accounts;
12(D) other employee benefits;
13(E) property insurance;
14(F) liability insurance;
15(G) workers' compensation insurance;
16(H) motor vehicle insurance;
17(I) building rental expenses;
18(J) custodial and maintenance supplies; and
19(K) the school district's proportionate share of the payments
20made by the state for the teachers' retirement system and the public employees'
21retirement system.
22(c) The Internet website and the materials posted on the Internet website must
23be accessible to the public at no cost.
24(d)    Nothing in this section requires disclosure of information that is
25confidential under state or federal law. However, the committee shall provide
26aggregated or summarized information describing confidential revenue and
27expenditures if the aggregated or summarized information protects confidentiality.
28  * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to
29 read:
30TRANSITION: FINANCIAL INFORMATION FOR PRECEDING FISCAL YEARS.
31 (a) Notwithstanding the requirement in AS 24.20.207(a)(1), enacted by sec. 6 of this Act, that
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1  the Legislative Budget and Audit Committee provide on the Internet website established
2  under AS 24.20.207(a), enacted by sec. 6 of this Act, financial information available from
3  each school district's annual audit filed under AS 14.14.050(a) for each of the preceding 10
4  fiscal years, the committee shall
5(1) not later than February 15, 2028, provide the information for the preceding
6  fiscal year;
7(2) not later than February 15, 2029, provide the information for the preceding
8  two fiscal years;
9(3) not later than February 15, 2030, provide the information for the preceding
10 three fiscal years;
11(4) not later than February 15, 2031, provide the information for the preceding
12 four fiscal years;
13(5) not later than February 15, 2032, provide the information for the preceding
14 five fiscal years;
15(6) not later than February 15, 2033, provide the information for the preceding
16 six fiscal years;
17(7) not later than February 15, 2034, provide the information for the preceding
18 seven fiscal years;
19(8) not later than February 15, 2035, provide the information for the preceding
20 eight fiscal years; and
21(9) not later than February 15, 2036, provide the information for the preceding
22 nine fiscal years.
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