Along with announcing his veto of an education funding bill on April 17, Gov. Mike Dunleavy introduced new legislation with less of an increase in the state’s per-student funding formula, along with additional funding and policy items to benefit charter schools and homeschool programs.
At a news conference in the state Capitol, the governor said there were two reasons for his veto.
“One of the reasons is that the (state) revenue situation has deteriorated a lot” in recent months, Dunleavy said. “And the second reason for the veto is there’s no policy with this.”
Last week, the Legislature passed a stripped-down version of House Bill 69, taking out all of its policy provisions and putting forward a version that increased the state’s Base Student Allocation — the core of the per-pupil funding formula for school district operations — by $1,000.
That increase of about 17% would have eliminated more than half of the Wrangell School District’s projected budget deficit for the 2025-2026 school year.
The funding boost would cost the state an estimated $253 million next year, or about 4% of the Alaska general fund budget.
The vetoed legislation originally was focused solely on a funding increase, though legislators later added some policy changes sought by the governor. However, legislators removed those provisions after Dunleavy continued to criticize the different versions of the bill for falling short.
In his veto announcement, the governor urged legislators to reconsider his policy proposals to advance school funding this session.
“We still have 34 days left in the session. We still have plenty of time to get a bill passed,” he said.
The governor’s new bill includes a permanent $560 increase to the Base Student Allocation, which is less than what legislators and the governor approved last session as a one-time boost for the current school year.
The governor’s new proposal also includes $13.6 million to fund homeschool students at the same level as the core amount for students in brick-and-mortar schools. The state currently funds homeschooling at 90% of the Base Student Allocation. Dunleavy has long advocated for more state support for homeschooling.
In addition, he proposed $21.9 million in incentive grants aimed at improving reading proficiency, an expansion of the application process to create new charter schools, and statewide open enrollment that would allow families to choose which school students can attend.
The 60 members of the House and Senate were scheduled to meet in a joint session on Tuesday, April 22, to consider whether or not to override the governor’s veto.
A veto override would require votes from 40 of 60 legislators. Multiple legislators said there are unlikely to be 40 votes for an override. The funding bill garnered 32 votes in the House and Senate two weeks ago.
House Speaker Bryce Edmon, of Dillingham said the House majority caucus is open to negotiating with Dunleavy and consider his policy proposals, but he’s concerned it doesn’t address the state of schools now, many of which are facing major deficits and budget shortfalls.
With 34 days left in the session, Edgmon, said the funding boost is a major priority.
School district officials, students, parents and advocates have testified to lawmakers over weeks during the session that Alaska schools are in a financial crisis, and face steep cuts to programs, school closures and the loss of teachers and staff without a significant funding boost. Already, school districts have sent out hundreds of notices of potential layoffs.
Caroline Storm, executive director of the nonprofit Coalition for Education Equity, said in an interview on April 17 that the group is preparing a lawsuit against the state for failing to maintain adequate schools, as required under the state constitution.
The group sued the state in 2004, where a judge ruled that the state was failing to support underperforming schools. Storm said the state is again not fulfilling its obligation.
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