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Alaska Senate committee floats ‘mini-bus’ education bill aimed at one-time funding, policy changes

By: Corinne Smith, Alaska Beacon

A school bus drives in front of the Alaska State Capitol on Monday, Feb. 3, 2025. (Photo by James Brooks/Alaska Beacon)

While many school districts across Alaska are facing severe budget shortfalls, several bills to provide a sustained increase to education funding appear to have stalled in the Legislature. But a bill to add nearly $82 million one-time funding and education policy changes is moving forward with bipartisan support. 

On Monday, the Senate Education Committee introduced a revised version of House Bill 28, that adds one-time funds for energy relief, transportation, reading and vocational training, to a bill that would establish a loan forgiveness program for Alaska teachers. It also includes a variety of policy changes related to home school programs and others. 

Chair Sen. Löki Tobin, D-Anchorage, described it as a “mini-bus” bill on Wednesday, saying the new omnibus bill includes specific education funding to areas sought by the governor and lawmakers on both sides of the aisle. 

“We heard that there is a deep concern about education reform still being left on the table, and so in those discussions we focused the new version of House Bill 28 on codifying some of the best practices that we know are going to improve education outcomes across the state,” Tobin said.

The underlying bill establishes a new three-year student loan forgiveness program to incentivize teachers to stay in Alaska. It’s focused on teachers specializing in special education, English as a second language, science, technology, engineering and math. It would provide up to $15,000 to pay off student loans for those who go out of state and return to work in Alaska. The House passed the bill last May.

“We need to incentivize teachers to stay here,” said Rep. Andi Story, D-Juneau, who sponsored the bill. “We’ve had such tremendous turnover, and we’ve got this tremendous shortage. And so I think the bill will help.”

The bill moved to the Senate this year, and education committee members tagged on a variety of items on Apr. 21. According to data provided by Tobin’s office, it contains an additional $21.8 million for reading proficiency grants, $9.7 million for career and technical education, $7.3 million for transportation, and $43 million to offset rising energy costs for school districts.

“We do not want to divert operating costs, dollars that should be in the classroom, to just keeping the lights on and buildings warm,” Tobin said.

Meanwhile many Alaska school districts are in the midst of budget negotiations and grappling with cuts to staff and programs to address large budget shortfalls.

Districts have announced at least eleven potential school closures to date in Anchorage, the Matanuska-Susitna Borough, the Kenai Peninsula Borough and Ketchikan

Tobin said at a Senate Majority caucus news conference on Wednesday the goal of the education policy bill is to garner enough support on both sides of the aisle to be able to override a potential veto by the governor. 

“It is obviously the hope for all of us that we will continue to increase stable and predictable funding for our schools and ensure that they have the resources they need,” she said. “However, at the end of the day, our goal is to get dollars into the classroom and to get support into our schools, and I will work diligently to do that with the number of people that I can guarantee will be there to get that bill across the finish line.”

Gov. Mike Dunleavy has been a staunch opponent of increasing funding for schools, saying that education policy changes are needed to improve student outcomes. Last year, he issued three vetoes of additional funding for K-12 schools sustained through the state’s funding formula, the base student allocation, and the last was narrowly overridden by the Legislature last summer. 

This year, legislators introduced bills to again provide a sustained increase per student funding statewide. Rep. Rebecca Himschoot, I-Sitka, introduced a bill to add $158 million to boost the per student formula, but so far it hasn’t moved out of the House Education Committee. 

Earlier in the session, Tobin introduced a bill that would add nearly $100 million in education funding. A portion of that money would go to per student funding through the BSA, and additional reading proficiency grants and transportation funding. But her bill proposed policy changes to enact reporting and testing requirements for homeschool programs that drew public criticism from homeschool proponents, so the Senate Education Committee stripped the provision and held the bill.   

The new draft Senate bill also institutes more reporting requirements from school districts to the state on their homeschool programs, including how many students are enrolled by grade, where they live across the state and how their annual allotment is spent, among others. 

The draft bill would commission a state audit to evaluate Alaska’s funding for schools, and make recommendations for changes or for alternative methods of education funding. There is no cost estimate yet for the study, or the entire bill. 

Tobin said the funding adequacy study is a top priority of the joint Task Force on Education Funding. “We know that our foundation formula needs some reform, and it also needs some additional attention on particular components that have changed significantly in the last few years, the pandemic really showcased that,” she said. 

Story said she supports the changes to the bill. “There’s some really good things that got put in there,” she said. “It’s the end of the session, lots of things are happening, so we’ll just see. But I’m hoping good things happen for teachers and families and for our kids to get more attention next year.”

The draft “mini-bus” bill was approved by the Senate Education Committee and now moves to the Senate Finance Committee for consideration. 

Meanwhile, senators are debating the draft operating budget for next year that includes up to $100 million in additional funding for schools, but only if oil prices remain high. The House passed a draft operating budget with nearly $158 million in one-time funding for K-12 schools earlier this month. 

A select group of lawmakers from both chambers will negotiate and reconcile a compromise between the two budget bills — and a final allocation for Alaska schools next year —  in a conference committee in the last days of the legislative session, by May 20. 

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Alaska News

Listen: Assembly to take up Lutak Dock, severance tax proposals during this week’s meeting

Will Steinfeld with the Chilkat Valley News is back in the studio with KHNS’ Melinda Munson to get Haines ready for Tuesday’s borough Assembly meeting. The Assembly will be presented with Lutak Dock options, severance tax, plastic bag legislation, and more. 

Melinda Munson: Will, the assembly is being presented with the current options for the Lutak Dock, and they have two recommendations in front of them. Tell us about that.

Will Steinfeld: I think it’s kind of a momentous thing that’s going on here. It’s been many weeks, months, years, even, of people hearing about the Lutak Dock and considering all these different factors. What kind of dock do they want? What’s the process for getting it built? And recently, it’s been a lot of kind of intermediary work going back and forth with the borough’s consultants from Moffatt and Nichol, the engineering firm…

But here at Tuesday’s meeting, the Assembly is … scheduled, to make a decision on what broad design concept they want to move forward with. So there’s three on the table. It’s not a detailed engineering design yet, but it’s three different styles of dock construction… 

And whichever one the Assembly chooses here, it’s not necessarily a final decision in the sense that they’re certainly building that one. But it’s going to be the dock concept that the contractors, the borough’s consultants, start putting more work in and developing and trying to get out the bid at the end of this summer. 

Coming into the meeting, two borough bodies, the Planning Commission and the Ports and Harbors Advisory Committee, have each made recommendations for which of these three concepts they think the Assembly should move forward with. 

 And while all these bodies, including the Assembly, are using the same criteria to evaluate these dock concepts, the two bodies that have made decisions or made recommendations so far have each recommended different things. So we’ll see what kinds of qualities the Assembly chooses to prioritize, and where they eventually come down.

Okay, Will. Tell us about last meeting. There were only four assembly members that participated in the meeting. So what did that mean?

It was kind of a weird situation, procedurally, since there are only four assembly members to get the four votes to pass any of the legislation that was on the table. Or really do anything. Amend it, send it to committee, any of these actions that require a majority vote, in this case, required a unanimous vote of all four members who are present. That gave each person sitting at the dais basically a veto. If they voted no, the thing was going to die. 

So two pieces of legislation that the Assembly had been considering for a few weeks were voted down. One was adding language to the borough’s plastic bag ban that some Assembly members hoped would clarify the legislation eliminate stores using plastic bags in town. And the other was a severance tax to tax raw materials being exported from the borough, like timber or gravel and sand. 

Both of those are back on the agenda for this week. So it’s kind of old things made new again, and they’re going to have to start all the way back at the start of the legislative process. They’re up to be introduced for a first public hearing, even though at the last meeting they were up for a final vote. I think we’ll hear more about the procedure of this, maybe from the clerk at the meeting. But I think it’s kind of a way to reconsider these pieces of legislation from the start.

The one that has some changes is the severance tax. There are actually two proposals. One is the prior proposal that was being considered, and one is an adjusted proposal from assembly member Mark Smith. The difference with Smith’s would be his removes timber from taxation. It also halves the rate of tax for gravel and sand, and it recommends that the borough use a payment in lieu of tax for mineral ore instead of severance tax.

Finally, there was a petition with over 500 signatures to pause sales tax, because people are feeling that everything is just so expensive. Tell us what happened after that petition came out, and what the muni’s response was to that.

I think the number of signatures really made an impact on the Assembly, at least from what I’ve seen in the past year or so. It’s pretty rare to get that much public support behind something. And assembly members, I think across the board, have said, ‘Hey, we really hear you on this. We think we see costs are going up. We want to try and do something about it.’ But that something is hard to say, exactly what the mechanism might be. 

And so last meeting, what assembly members decided to do was have a town hall where people could come in. And the mayor said, you know, ‘It’s important for us to actually hear what specific struggles people have before we decide what the best way to try and address those is.’ 

Unfortunately, last week, at said town hall there was only one member of the public in the room, and maybe two or three or a couple more online. So, it ultimately just ended up kind of being a discussion forum for assembly members who are there. And there was actually only a couple assembly members there.

The post Listen: Assembly to take up Lutak Dock, severance tax proposals during this week’s meeting appeared first on Chilkat Valley News.

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