Alaska lawmakers have introduced new legislation in the House of Representatives that would raise the state’s per-student funding formula for schools. They say it is critical to help school districts struggling with rising costs and ballooning deficits.
The House Education Committee introduced House Bill 374 on March 4. It would raise the state’s per-student funding, known as the base student allocation, by $630 per student, more than 9%. That would increase the current per student total from $6,660 to $7,290. Lawmakers increased the base formula by $700 per student last year.
Schools need more financial help than just last year’s formula increase, said Sitka Rep. Rebecca Himschoot, co-chair of the House Education Committee.
Last week’s proposed funding increase would cost $158.6 million statewide, a hefty price tag in a year with a tight state budget and legislators reluctant to draw from reserves to cover higher spending.
The proposal will face a lot of fiscal resistance in the 10 weeks left in the legislative session.
If approved, it would boost state funding by more than $250,000 next year for the Wrangell school district, which is pulling money out of its reserves to cover its spending plan.
Palmer Rep. DeLena Johnson, House Republican Minority Leader, expressed skepticism at adding state funding for schools this year. “No discussion about adding additional money can be had without deciding what program you want to cut,” she said.
Himschoot said the proposed funding increase would provide a partial stopgap for budget shortfalls at districts statewide.
The Anchorage School District is facing a $90 million budget deficit, and is advancing plans to close three schools and cut 500 teachers and staff. The Matanuska-Susitna Borough School District is confronting a $23 million deficit and considering closing three schools. The Kenai Peninsula Borough School District is looking at an $8.5 million budget shortfall and is considering ways to cut costs. The Juneau School District has a $6.7 million budget shortfall.
Himschoot acknowledged that the state has revenue challenges but said lawmakers should make education a priority.
Last year, lawmakers faced a bitter political battle with Gov. Mike Dunleavy who twice vetoed education funding increases, citing the need for education policy changes to improve student outcomes. Lawmakers overrode Dunleavy’s veto and passed the funding formula increase.
Johnson said after the funding increase last year, districts should manage their budgets accordingly.
“We added a significant amount of money last year,” she said. “I think that we need to take a little while to let the districts figure out what they actually need and let that money go through the process. If they have to make corrections, I don’t know what to say — if they have to close schools — they have to do whatever they have to do to manage their budget.”
Johnson expressed concern that the state is reckoning with its own projected budget deficit. “We’re in deficit spending, and I don’t know where the money’s going to come from. And I think we need to have a lot more data on school spending,” she said.
School officials, teachers and students have testified to the House Education Committee this year that state funding has not kept pace with classroom needs, particularly with rising costs for keeping schools open, including fuel, insurance and transportation, as well as deteriorating school facilities.
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