Policy Services
Quality Schools/Quality Student Service
Subject Area:
Funding

2.1 SUSTAINED, RELIABLE AND ADEQUATE EDUCATIONAL FUNDING FOR ALASKA’S STUDENTS
THROUGH A NON-VOLATILE FUNDING SOURCE
The sustainability, reliability and adequacy of Alaska’s funding for public education are of highest concern to the
Association of Alaska School Boards. AASB urges the Legislature to develop a fiscal plan that provides a long-term
approach to funding the costs of public education and other services upon which Alaska’s students and their families
depend.

Rationale. The State of Alaska provides a wide range of services to a diverse population spread over a logistically
complex area. Providing these services historically cost more than the state has received in recurring revenue. A longterm
plan that ensures reliability of funding for education and other state services that impact the delivery of
education, regardless of variation in volatile resource markets, is needed to provide a stable business climate and to
ensure the citizens of necessary services. Adopted 2002, Amended 2004 (Sunset Nov. 2012)

2.2 EXTRAORDINARY LOSS PROTECTION
The Legislature should enact a “safety net” for school districts to offset a loss of state formula funding due to
extraordinary changes outside the control of the districts such as an extraordinary decline in enrollment, either districtwide
or at an individual school that falls below a specified funding threshold after contracts are in place.

Rationale. Schools districts are exposed to extreme hardship from an unbudgeted loss of funds due to an
unanticipated sharp decrease in enrollment. School districts are not forward funded and are not currently allowed to
carry more than 10 percent of their budget forward.

Districts do not know how much state revenue they will actually receive until after the first of November, by which time
their greatest cost – teacher salaries – are largely locked into place for the year. Districts are required under current
laws to notify tenured teachers of their contractual status for the following school year by March 16 of the preceding
school year.

The loss of funding communities can have large, unexpected negative effects on the budget of the district. In 2003
several school districts suffered funding shortfalls, which consequently caused multiple financial catastrophes and
serious personnel issues. Adopted 2003, Amended 2004 (Sunset Nov. 2008)

2.3 SUPPORTING THE RECOMMENDATIONS OF THE JOINT LEGISLATIVE EDUCATION FUNDING
TASK FORCE
AASB endorses the comprehensive package recommended by the Legislative Education Funding Task Force in its
report of September 1, 2007, with the understanding that rapidly increasing costs require annual increases to the BSA
greater than the “minimum” noted in that report. AASB supports setting the BSA in statute at $5,580 for FY 09, $5,780
for FY 10 and $5,980 for FY 11.

Rationale. The foundation funding program for K-12 schools is driven by the Base Student Allocation. While the BSA
has been increased steadily since 2004, most of the increase has been devoted to offsetting higher retirement costs
for the PERS-TRS system. The 1998 law (SB 36) instituting the BSA included a District Cost Factor for schools
outside of Anchorage, with the proviso that the legislature revise the cost factors every two years. To date, that
revision has not occurred. The same inaction has caused state support for intensive needs students to become
woefully inadequate.

The Legislative Education Funding Task Force recommendations form a comprehensive package that should be fully
enacted to address many of the current inequities in the funding formula. The Task Force acknowledged that the
proposed $100 annual increases to the BSA were the “minimum” increases, and AASB recognizes that those
increases are approximately one-half of what is needed. Critical to the report’s recommendations is enactment of SB
125 to shift a large portion of the PERS-TRS payments away from school districts. AASB also supports immediate
phased implementation of the ISER District Cost Factors as recommended by the task force. Also critical is the
review of the District Cost Factors with the understanding that after this review the cost factors may be larger or
smaller than the ISER cost factors. Whatever the correct factors are, those factors should be fully implemented.
Adopted 2007

2.4 FINANCIAL SUPPORT OF STATEWIDE STRATEGIES FOR ACADEMIC ACHIEVEMENT
The Association of Alaska School Boards urges the Alaska Legislature to provide the financial support necessary for
public education, the Department of Education & Early Development, universities and other agencies to fully realize
the potential of a standards-based educational system focused on increasing student achievement. To ensure a
successful standards-based educational program that helps students meet and go beyond standards, the Association
of Alaska School Boards supports the following strategies:
1. Increased learning time through an expanded day or extended school year and/or remediation efforts like
summer school to increase learning.
2. Professional/technical assistance to align curriculum with standards, instruction and assessments.
3. Enhanced teacher preparation and professional development.
4. Teacher/administrator recruitment to attract highly qualified professionals to come and stay in Alaska.
5. Accommodation of special needs students.
6. Early entry opportunities.

Rationale. Over the years, many forums have identified a variety of statewide strategies to help meet student
performance standards.

In addition, the No Child Left Behind Act of 2001 requires all students to meet high standards. Special Education
students often require specific learning strategies, specialty trained educators and support staff, as well as additional
time and resources. These strategies are critical to increase achievement, but also require increased funding.
Adopted 2000, Amended 2001, 2002, 2003, 2004 (Sunset Nov. 2008)

2.5 AASB ADVOCACY ON INDIVIDUALS WITH DISABILITIES IN EDUCATION ACT (IDEA)
Following passage of the Individuals with Disabilities Education Improvement Act of 2004, AASB will
monitor and advocate the following:
1. Increased funding to fully fund the federal mandate.
2. Resolution of differential treatment and discipline for special education students.
3. Provision for adequate staffing/teacher preparation.
4. Establishment of post-secondary educational programs to train additional individuals as certified
special education teachers and related services providers (i.e. school psychologists, physical
therapists, and speech therapists).
5. Decrease in current high staff turnover.
6. Provision for teacher liability/legal protections for advocates.
7. Placement of students and delivery of services.
8. Mediation between school districts and parents when disagreements develop over student
placements.
9. Reduction of massive required paperwork.

Rationale. AASB joins with the National School Boards Association in urging Congress to fairly and fully
fund this federal mandate. IDEA was enacted in 1975 when the federal government committed to pay
40% of the costs associated with educating children with disabilities. According to the National School
Boards Association, federal funding accounts for approximately 16% of the necessary funding. The
remainder comes directly from the regular instructional program of local school districts. Nationwide in FY
2006, the total under-funding of IDEA was estimated at $12.4 billion.

Local school officials must be empowered to preserve a productive and safe learning environment free of
undue disruption or violence. Consistent discipline requirements and procedures are the keys to a safe
environment.

Issues such as discipline and excessive paperwork are having a negative impact on educators; as a
result fewer certified personnel are willing to teach in special education programs.
Adopted 2000. Amended 2001, 2002, 2003, 2004, 2005 (Sunset Nov. 2008)

2.6 FUNDING STANDARDS-BASED EARLY LEARNING PROGRAMS IN ALASKA
AASB supports legislation to add additional funding for the planning and programming of early learning
programs, including all pre-school children.

Rationale. State and local performance standards set high expectations in mathematics, reading and
writing for children age 5 through 7. Research indicates that earlier education is critical for many children
to successfully reach those expectations. With the enactment of federal No Child Left Behind legislation
and state designators, the legislature will be accountable for paying the cost of missing the opportunity to
reach children at the age when the greatest gains in mental development are possible. Appropriately
housed early learning programs should be an integral part of district curriculum. Inclusion of early learning
in a school has an impact on facilities planning.

The state offers no funding for early-learning education. Many communities do not meet the qualifications
for federal Head Start or early-learning funding and sources of present federal funding are uncertain.
Most existing early-learning programs cannot afford certificated early-learning teachers. Amended 2001,
2002, 2004, 2007 (Sunset Nov. 2008)

2.7 FUNDING FOR INTENSIVE NEEDS PRE-SCHOOL AND OTHER INTENSIVE NEEDS
STUDENTS ENROLLING POST-COUNT DATE
AASB supports prorated funding for 3-year-old preschool students with intensive needs who turn three
years old after the October count date, thereby becoming eligible for enrollment and enrolling in public
school after state funding has become fixed. Extra pro-rated funds must also be provided for all other
intensive needs students enrolling after the count date.

Rationale. IDEA ’97 requires that public schools enroll students with disabilities at age three. These
students typically require not only special education services but also extensive related services (speech
therapy, occupational therapy, physical therapy). Preschool students with disabilities whose third birthday
falls after the October count date incur costs to the district that are not typical of other students enrolling
after the count date. The district is required to provide all services identified by the IEP team. Currently,
districts receive no funding for these costly services for those intensive-needs children who turn three
years old after the state’s October count date.

Other intensive-need students who move to a district after the October count date pose a similar financial
challenge. The cost to provide federally mandated services to a single intensive needs child is many
times the cost of services to a non-special needs child. Districts cannot be expected to absorb the costs
of services for intensive needs children who first enroll after the count date under a budget that provides
no funding to satisfy this federal requirement. Supplemental funding for post-count date intensive needs
students is critical. Adopted 2003, Amended 2004, 2005, 2006 (Sunset Nov.2008)

2.8 FOLLOWING THE CAPITAL IMPROVEMENT PROJECT PRIORITY LIST FOR NON BONDED
PROJECTS
AASB strongly advises the legislature to follow the priority list for non-bonded projects as presented by
the Department of Education and Early Development with no adjustments, deletions, or additions that
would not otherwise be of an emergency basis.

Rationale. The Capital Improvement Projects list goes through a very comprehensive prioritization
process developed and implemented, based on need, by the Department of Education and Early
Development. The legislature in recent times has not followed the priority list as presented. Adopted
2000, Amended 2001, 2004 (Sunset Nov. 2008)

2.9 LOCAL CONTRIBUTION IN THE SCHOOL FUNDING FORMULA
AASB supports retaining in the school funding formula the local option of establishing a local contribution
based on 45 percent of basic need for borough and municipal school districts.

Rationale. The current education funding formula was developed with statewide support for all school
age children. It allows for a minimum local contribution of the lesser of 4 mills or 45% of basic need.
Adopted 2001, Amended 2004, 2005 (Sunset Nov. 2011)

2.10 EDUCATION ENDOWMENT
AASB lends its full support to the concept of an educational endowment to secure stable and full funding
for education to be used for public elementary and secondary education.

Rationale. The funding of public K-12 education in our state is an annual appropriation from the General
Fund and is subject to the shifting funding priorities of administrations and legislatures, and the variable
level of state revenues. Budgetary cycles have increasingly failed to provide a stable and secure funding
source for Alaskan students. An educational endowment will provide a proven, secure, and dedicated
fiscal resource for future public education funding for our state, and allow long-range education planning
with confidence in the availability of that resource. Amended 1998, 1999, 2002, 2007 (Sunset Nov. 2008)

2.11 INSTRUCTIONAL TECHNOLOGY
AASB is encouraged by and grateful for the Legislature’s commitment of $5 million in the 2007 capital
budget to support the AASB Consortium for Digital Learning. This appropriation will enable 18 school
districts involving nearly 2,500 students and teachers to pilot the integrated use of laptop computers on a
24/7 basis. Future investments in the Consortium by the Legislature are essential to allow all students
access to the expanded learning opportunities provided by digital learning inside and outside the school
environment. Because of the global economy that our youth will experience, AASB urges the state and
federal governments to ensure that all classrooms are provided affordable and equitable broadband
access to the national information infrastructure. AASB urges the Legislature to implement appropriations
or matching grants for instructional technology that would address hardware and software purchases,
communication, infrastructure and training needs of students and staff. We request the Legislature to join
us in urging Congress to fully fund either the provisions of the Telecommunications Act of 1996 (E-rate
program) or a robust educational technology substitute that protects the Universal Service Fund to help
provide affordable telecommunications to rural areas.

Rationale. Alaskan students are growing up in a digital age that is allowing access to all global markets.
If our students are to thrive in this ever-increasing global economy, K-12 schools must have the tools and
trained staff to provide the appropriate education. Currently, a number of schools have seen many of their
technology purchases become obsolete, outdated, and inoperable. Teachers are unable to effectively
integrate technology in the classrooms due to lack or inadequacy of equipment and/or training. Current
school district budgets cannot provide adequate funds to meet existing or future instructional technology
needs.

Equality in educational opportunity has always been a goal of the Association of Alaska School Boards.
Future economic viability will not depend as much on physical presence, but rather the ability to import,
transmit or convey ideas and information electronically. Today’s globally competitive economy requires
that all schools have access to modern technologies–Internet access, computers, distance learning–that
can open new doors of educational opportunity for our school children. Amended 1998, 1999, 2001,
2004, 2006 (Sunset Nov. 2008)

2.12 SCHOOL CONSTRUCTION DEBT RETIREMENT FOR BONDED INDEBTEDNESS
AASB calls upon the Legislature and the administration to fully honor all past commitments for bonded
indebtedness reimbursement and to meet future school construction needs by extending beyond
November, 2008 and continuing to fully fund the school debt reimbursement program.

Rationale. Article 7, Sec. 1 of the Alaska State Constitution states that the Legislature shall establish and
maintain a system of public schools open to all children. Under AS 14.11.100 the State of Alaska agreed
to repay school districts at set percentage rates for school construction bonded indebtedness in past
years. Extending that program into the future will help meet school construction needs in areas of the
state that are able to bond.

Over the past years of high growth many regions of the State have bonded for school construction with
the expectation that the State would honor its obligation. In the past these good faith agreements have
sometimes not been fully honored, placing a heavy burden on local taxpayers. This aforementioned tax
burden has created a hardship for taxpayers and resulted in a loss of local revenue for classroom
education.

Voters who passed Proposition C in 2002 have a justified expectation that the general obligation bonds
approved by their communities will continue to be partially reimbursed at the level promised by the state.
Amended 1998, 2001, 2002, 2003, 2004, 2007 (Sunset Nov. 2008)

2.13 REVENUE SHARING
Municipalities play a large part in financing education and providing community services necessary to
student learning. Steep reductions in Municipal Revenue Sharing & Assistance programs have had and
continue to have a serious impact on public schools. The Association of Alaska School Boards supports
restored and increased funding for Municipal Revenue Sharing & Assistance, while recognizing that an
increase in community support cannot substitute for necessary increases in direct education funding.

Rationale. State funding to municipalities has been decreasing annually. The loss of state aid to
municipalities reduces the services they are able to provide, including funding of schools. These
decreases are also forcing communities to raise taxes to offset state mandates. Support for this program
is essential. Adopted 1999, Amended 2000, 2001, 2004, 2007 (Sunset: Nov. 2008)

2.14 EMERGENCY STATE FUNDING FOR REAA FUEL STORAGE AND TRANSFER FACILITIES
AASB requests emergency state funding for upgrades of state-owned fuel storage and fuel transfer
facilities in REAA school districts where there is an imminent environmental and safety hazard.

Rationale. State-owned fuel storage and fuel transfer facilities in school districts across Alaska are aging
and, because of the harshness of the environment, are deteriorating rapidly. The potential for disastrous
leakage and spillage is extremely high as that deterioration continues and escalates.

Stringent regulations, both state and federal, mandate significant penalties for school districts suffering
fuel spills from state-owned facilities. Replacement costs for aging systems are astronomical and far
beyond the funding allocations prescribed by the state for schools. Emergency state funding is crucial to
avoiding looming financial and environmental disasters, and in some districts, serious environmental
health problems. Adopted 2000 (Sunset Nov.2008)

2.15 PUPIL TRANSPORTATION
AASB urges the State of Alaska to fully fund pupil transportation under the new per-student funding
mechanism, modifying that mechanism to keep up with rapidly rising fuel and other operating costs, and
provide funding for districts with increased transportation needs due to special circumstances and/or
student growth. Getting students safely to and from school is a vital part of public education. AASB
supports the revision of AS114.09.010 to remove the cap and provide adjustments to the transportation
grant program reflective of transportation mandates and operating expenses.

Rationale. The Joint Legislative Education Funding Task Force recommends that the current system of
providing funding for pupil transportation be continued. However, the Department of Education & Early
Development should recalibrate funding levels for FY 2009, utilizing the most recent actual costs for the
school districts. Providing access to public education via transportation is a major responsibility for
schools. The new transportation funding mechanism, adopted in July 2003 caps the per-student
allocation at the FY03 level with inflationary adjustments established at one-half the Anchorage CPI in
FY05 and FY06. This adjustment is programmed to fall behind ordinary general inflation and is
particularly inadequate in the face of rapidly-rising fuel and other operating costs.

Pupil transportation is an important part of overall school funding. AASB requests that there be no short
funding of this critical element. Districts need an adequate block of funds to provide safe access to

schools and to ensure that districts are not forced to use instructional funding to meet the cost of
transportation obligations. Adopted 2000, Amended 2001, 2002, 2003, 2006, 2007 (Sunset Nov. 2008)

2.16 FUNDING FOR SCHOOL DISTRICT-OPERATED REGIONAL BOARDING HOME PROGRAMS
AASB supports providing adequate funding for locally controlled and operated, regional boarding high
schools throughout the state.

Rationale. The number of students requesting enrollment at Mt. Edgecumbe School exceeds the space
available. Passage of a boarding schools/charter school law in 1997 (ASL Ch. 113) allows for the creation
of boarding schools specifically not funded by the state. AASB would like to see that changed to provide
students with the option of attending locally controlled regional boarding high school operated by a school
district. Amended 1997, 2000, 2001, 2002, 2003, 2004, 2005, 2007 (Sunset Nov. 2008)

2.17 FUNDING FOR TRANSIENT STUDENTS IN SCHOOLS
The Association of Alaska School Boards supports development of a funding mechanism for
compensating schools for students entering after the October count date.

Rationale. Each year, students throughout Alaska enroll in boarding and other schools around the state.
Often, students leave schools immediately following the October count. These students generally return
to their home districts. Other districts face large influx of military-dependent and resource development
project students. The untimely arrival of students after the count date puts the receiving school districts at
a financial disadvantage. Districts receiving students after the October count must bear the financial
responsibility for educating these students without corresponding funds. Adopted 2002, Amended 2003
(Sunset Nov. 2012)

2.18 INSURANCE COSTS
AASB urges the Alaska State Legislature to take action through increased funding to mitigate increases in
insurance costs.

Rationale.. Insurance costs are draining badly needed resources for the classrooms and will continue to
do so unless steps are taken to mitigate these uncontrolled increases, which only add to the
administrative overhead of all districts. The cost of health and liability coverage, in particular, have added
to escalation of fixed costs faced by districts. Adopted 2002, Amended 2003, 2006, 2007 (Sunset Nov.
2012)

2.19 FINANCIAL EXIGENCY FOR REDUCTION IN FORCE
Every Alaska school board must and does use enrollment and revenue projections in the development of
annual budgets. The Association of Alaska School Boards supports clarification of the law explicitly to
allow the use of projections of enrollment and revenues as valid bases upon which to develop a plan for
reduction in force under AS 14.20.177. The term “financial exigency” must be defined in statute to
specifically allow the use of projections to give districts the latitude to adequately plan a quality
educational program that meets the needs of students.

Rationale. The Haines/Hoonah layoff lawsuit brought by NEA-Alaska in 2003 has far reaching
implications for all school districts during an economic downturn. School districts, like corporate America,
utilize revenue and other types of projections to determine staffing levels and program offerings. Districts
must be able to project to make decisions about staffing because they do not have “actuals.” The largest
component of a district’s budgetary commitment is to personnel. Without the use of projections to
determine operational costs, districts could be placed at financial risk.

This lawsuit seeks to disallow declining enrollment and declining revenue projections as a reason to lay
off employees, which may be necessary to reorganize the district educational program. NEA-Alaska is
making the case that reductions in enrollment or revenue must have already taken place in order to lay off
staff.

Tenured staff must be notified of non-retention before March 16 and non-tenured staff on or before the
last day of the school term. State law requires school districts to determine a budget for the following
fiscal year by May. The level of statewide school district funding, however, is often not known until June
after the governor considers the state operating budget passed by the Alaska State Legislature, and the
level of funding a particular district will receive is not known finally until the October count date. If lay-off
notices must go out in March or June of the preceding school year and lay-offs are allowed only after
attendance has decreased, districts would be required to retain a teacher surplus a full year after
enrollment has declined. Adopted 2003, Amended 2004, 2005, 2006 (Sunset Nov. 2008)

2.20 INCREASED FORMULA FUNDING
AASB calls on state policy makers to appropriate funding adequate to meet the needs of Alaska’s youth,
as mandated by state and federal law.

Rationale. The Joint Legislative Education Funding Task Force was charged with examining school
district cost differentials and the existing formula for distributing state aid for education. At a minimum, full
implementation of the Task Force recommendations needs to occur during the 2008 legislative session.
Appropriating an adequate amount to fund education is a legislative responsibility. The primary
responsibility for school boards is allocation of those funds. Unlike many school boards throughout the
nation, Alaska school boards do not have fiscal autonomy.

School boards know from experience that “full funding” of the education funding formula by state policymakers
does not necessarily equate to “adequate” funding. Our success as a state in meeting the
requirements of NCLB will require an investment in people, processes, and accountability measures.
AASB is committed to do its part to ensure success, but also note that an increase in formula funding will
remain inequitable unless the accuracy of the area cost differential is also addressed.

Our parents and communities are calling for decreased class size, additional support for at-risk students,
adequate textbooks and teaching materials, and updated technology, all of which require additional
funding. The state needs to provide funds to prevent declines in current educational services and to
provide for strengthening into the future. Adopted 2003, Amended 2004, 2005, 2007 (Sunset Nov. 2008)

2.21 LEGISLATIVE FINANCIAL RELIEF FOR ONGOING TRS AND PERS EMPLOYER RATE
INCREASES
The Association of Alaska School Boards supports seeking a legislative financial solution for school
districts and other political subdivisions of the state, including the Special Education Service Agency and
the Southeast Regional Resource Center, to fully fund ongoing TRS and PERS mandated employer
retirement rate increases. Those districts affected by the eroding floor should also be reimbursed for 100
percent of their PERS/TRS liability.

Rationale. Districts simply do not have the capacity to handle the massive unfunded liability of the state’s
retirement programs. Without supplemental funding to cover the unprecedented huge increases in
retirement costs these increases will directly reduce the instructional effort districts can pay for and harm
Alaska’s children. Funding for ongoing actuarially sound retirement costs should be included in the base
allocation, while unfunded liability should be addressed separately at the state level. Amended 2004,
2005, 2006, 2007 (Sunset Nov. 2008)

2.22 MODIFICATION OF MINIMUM INSTRUCTIONAL EXPENDITURE REQUIREMENT
AASB requests modification of the Minimum Instructional Expenditure requirement, (AS 14.17.520), to
reflect reasonable thresholds appropriate for districts of various sizes and cost levels.
Rationale. While AASB members place the highest priority on funding instruction, the requirement that all
districts must spend at least 70% of the district budget on expenditures for teachers and for instruction is
arbitrary and does not reflect state and federal mandates and other non-instructional expenses, and
ignores the needs and wishes of the community.

For many remote school districts, the minimum instructional expenditure requirement is unrealistic and
does not reflect the fiscal reality of sharply increasing energy and other operating costs faced by all
school districts.

The State Board of Education & Early Development regularly grants waivers of the minimum instructional
expenditures requirement to more than half of Alaska’s school districts, recognizing the impacted districts
had no fiscal capacity to comply with the law. The administrative burden of making annual waiver
requests absorbs critical instructional dollars at the district level as well as needlessly using up statewide
administrative resources for review. The EED Board voted in January, 2007, (see resolution 01-2007) to
request that the Legislature repeal the 70 percent rule as a waste of resources and duplicative of existing
systems for assuring student achievement. Amended 2004, 2005, 2007 (Sunset Nov. 2008)

2.23 ENERGY COST RELIEF
AASB urges the Alaska State Legislature to take action, through increased or supplemental funding to K-
12 schools and the University of Alaska, to mitigate the huge increase in energy costs.
Rationale. The State of Alaska has benefited from sustained, high yields of oil revenue, but for
consumers of energy, higher prices have depleted funding for other needs. As one of the state’s largest
consumers of energy, public schools deserve the same consideration as municipalities, which have
received financial assistance from the state to help defray increased fuel cost. The cost of fuel has risen
significantly over the last three years, placing a hardship on schools and biting deeply into the 70/30
requirement. This relief should be based on actual fuel cost. Adopted 2005, Amended 2006

2.24 TIMBER RECEIPTS LOSS OFFSET PROGRAM
AASB urges the State of Alaska to take a proactive approach to the scheduled shortfall of timber receipts
from federal lands in Alaska. Specifically, the Legislature should urge the federal Congress to extend the
present program or provide supplemental state funding to schools impacted by the loss of timber receipt
funds.

Rationale. Congress recognized in 2000, with passage of the Secure Rural Schools and Community
Self-Determination Act, that declining timber receipts from federal lands posed a serious problem for local
schools and road programs. The law established a national safety net based on historic timber revenue
levels of approximately $350 million a year. While Congress was successful in 2007 in extending the
program for one year through passage of PL 110-28, the future of the program beyond that is uncertain.
The Legislature and the State of Alaska should use its influence to extend the program beyond 2007, and
failing success in that effort consider using state funds to prevent losses of essential school programs,
teaching positions, administrative support and educational infrastructure. Adopted 2006, Amended 2007

2.25 RELIABLE AND EFFICIENT SERVICE BY THE ALASKA MARINE HIGHWAY SYSTEM
AASB urges the State of Alaska to provide or subsidize frequent, reliable and efficient ferry service to all
Southeast and Southcentral communities served by the Alaska Marine Highway System.

Rationale. School districts in Southeast and Southcentral Alaska depend on ferry access to provide
transportation to and from other communities for numerous academic and athletic activities. The lack of
frequent and dependable scheduled ferry service often makes it difficult or impossible to utilize the AMHS
in school-sponsored trips. The only alternative for many of the communities served by the AMHS is to
arrange travel by air, which markedly increases transportation costs and in some cases causes trips to be
canceled entirely. Adopted 2006, Amended 2007

2.26 FORWARD FUNDING FOR SCHOOLS
AASB supports forward funding for schools. This would provide sufficient time for school districts to
prepare and submit their budgets in a timely manner without spending unnecessary time and resources
revising budgets based on legislative action after the local budget process has begun.

Rationale. With the money in the Education Fund, it is now feasible to fund the FY 09 and FY 10
education budget during the 2008 legislative session (through either appropriation or by setting the BSA
for each year and ensuring that the Education Fund contains enough money to support the necessary
appropriation). Starting with the 2009 session, the legislature would only need to fund one year at a time,
but would be funding a full fiscal year in advance. Each year, the legislature will know exactly how much
money is available for education and for other state spending priorities.

When state oil revenues start to decline, the amount spent on education might also decline, but local
school districts would have a full fiscal year to prepare for the reduction in revenue. Forward funding will
provide fiscal stability for districts so they can make long-term decisions, reduce administrative cost and
enable school districts to focus on student instruction rather than constant budget revisions.
While early funding of the education budget – i.e., a signed education funding bill within the first 30 days
of the session – would also reduce the administrative burden on school districts, the legislature does not
receive its revenue projections in time to accomplish that goal. Adopted 2006, Amended 2007

2.27 RECONSTITUTION AND ACTIVE MANAGEMENT OF THE PUBLIC SCHOOL LAND TRUST
AND PERMANENT FUND
AASB supports additional research into reconstitution of the Alaska Public School Land Trust, active
management of the trust and working with Alaska PTA and other educational stakeholders to that end.
Rationale. A promise was made to Alaska public school children on March 4, 1915, when “An Act to
reserve lands to the Territory of Alaska for educational uses, and for other purposes,” (38 Stat. 1214,
Public Law 63-330/Chapter 181, 63 Congress, Session 3) was approved by Congress and signed by
President Woodrow Wilson. PL 63-330 requires when federal lands are surveyed, Sections 16 and 36 in
each township shall be and were reserved for the support of common schools in Alaska. Adopted 2007

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