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AlaskaHB 26134th Legislature - Second Session (2026)HouseWALLET

EDUCATION FUNDING

Sponsored By: Andi Story (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

Caps on state school construction reimbursements

The state caps how much it will reimburse for certain school construction projects. The caps are $190,644,901, $177,256,000, and $14,644,000, depending on the program. The department must split these amounts among municipalities using past enrollment ranges from earlier years. These historical allocation rules apply to projects approved after specific dates and before 2006. The caps and allocation rules take effect July 1, 2026.

How student counts set school funding

Beginning July 1, 2025, state aid equals basic need minus the required local share and 90% of eligible federal impact aid. Basic need equals district adjusted ADM times the base student amount. For each school, funding uses the largest of the prior three‑year average, last year, or this year. On July 1, 2026, the law defines how to average the three years and applies the same largest‑of‑three rule to communities and charter schools. Districts may count early education students only if the department has approved the program. When schools consolidate, districts can use a four‑year offset to soften funding drops.

Transition and timing for new ADM system

Starting July 1, 2026, districts that qualify on that date can keep using the old school‑size ADM method until they no longer qualify. For FY2027, if last‑day special education counts are missing, use FY2026 data. For FY2027–FY2029, if a year is missing from a three‑year average, use that year’s counts under the prior law. The change to AS 14.17.410(b)(2) applies back to July 1, 2025 and takes effect immediately. Sections 10, 11, 13, and 15 of ch. 5, SLA 2025 start July 1, 2026. Sections 10 and 18 of this Act start when section 47, ch. 40, SLA 2022 takes effect.

Boarding schools follow district rules

The law treats a state boarding school like a school district for many rules. This covers school terms, audits, funding rules, teacher employment, and student program protections, including special education and bilingual services. The change starts July 1, 2026.

Old funding and ADM laws repealed

On July 1, 2026, the law repeals AS 14.17.500 and subsections (f)–(h) of AS 14.17.600. It also repeals AS 14.03.120(h), AS 14.03.410, AS 14.03.420, AS 14.20.020(l), AS 14.30.760–.780, and AS 14.30.800. Section 19, ch. 5, SLA 2025 is repealed too. These removals align statutes with the new ADM and funding rules and may end programs tied to the old sections.

Sponsors & Cosponsors

Sponsor

  • Andi Story

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 55 • No: 25

House vote • 5/12/2026

PASSED Y31 N9

Yes: 31 • No: 9

House vote • 5/11/2026

AM NO 7 ADOPTED Y24 N16

Yes: 24 • No: 16

Actions Timeline

  1. (S) -- Invited & Public Testimony --

    5/15/2026Senate

  2. (S) EDUCATION at 03:30 PM BELTZ 105 (TSBldg)

    5/15/2026Senate

  3. (S) REFERRED TO EDUCATION

    5/14/2026Senate

  4. (S) EDC, FIN

    5/14/2026Senate

  5. (S) READ THE FIRST TIME - REFERRALS

    5/14/2026Senate

  6. (H) VERSION: CSHB 261(FIN) AM

    5/13/2026House

  7. (H) TRANSMITTED TO (S)

    5/13/2026House

  8. (H) RECONSIDERATION NOT TAKEN UP

    5/13/2026House

  9. (H) COSPONSOR(S): HIMSCHOOT, DIBERT

    5/12/2026House

  10. (H) JOHNSON NOTICE OF RECONSIDERATION

    5/12/2026House

  11. (H) EFFECTIVE DATE(S) SAME AS PASSAGE

    5/12/2026House

  12. (H) PASSED Y31 N9

    5/12/2026House

  13. (H) READ THE THIRD TIME CSHB 261(FIN) AM

    5/12/2026House

  14. (H) COSPONSOR(S): JOSEPHSON, SCHRAGE

    5/11/2026House

  15. (H) ADVANCED TO THIRD READING 5/12 CALENDAR

    5/11/2026House

  16. (H) AM NO 9 NOT OFFERED

    5/11/2026House

  17. (H) AM NO 8 ADOPTED UC

    5/11/2026House

  18. (H) AM NO 7 ADOPTED Y24 N16

    5/11/2026House

  19. (H) ...CHANGES TITLE OF LEGISLATION

    5/11/2026House

  20. (H) AM NO 6 ADOPTED UC

    5/11/2026House

  21. (H) AM NO 5 FAILED Y19 N21

    5/11/2026House

  22. (H) AM NO 4 NOT OFFERED

    5/11/2026House

  23. (H) AM NO 3 FAILED Y19 N21

    5/11/2026House

  24. (H) AM NO 3 OFFERED AND PENDING

    5/11/2026House

  25. (H) AM NO 2 FAILED Y19 N21

    5/11/2026House

Bill Text

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