The Alaska State Board of Education voted on Wednesday to pause highly controversial emergency regulations that would have significantly limited local funding for public schools across the state.
The proposed measures were set to change how municipalities could fund their local school districts, potentially affecting tens of millions of dollars in school funding.
School administrators expressed widespread outrage, arguing that the regulations posed a threat to local educational resources and maintained that there was no genuine emergency to justify such rapid legislative action.
Prior to the board’s meeting, the Anchorage School District indicated intentions to challenge the regulations in court if they were approved, further complicating the situation.
These regulations, introduced by the Alaska Department of Education and Early Development, were designed to ensure compliance with a federal equity test concerning educational funding.
In May, Alaska failed this equity test concerning funding from two years prior, which could potentially obligate the state to allocate an additional $81 million to school districts.
State education officials, however, contended that the federal determination was incorrect and expressed intentions to appeal the decision.
They emphasized that the new regulations would provide clarity for school districts and municipalities regarding permissible local contributions.
However, multiple financial officers from various school districts expressed skepticism, suggesting the regulations would not resolve the ongoing federal funding disputes.
They highlighted that the changes would introduce a significant shift in municipal funding practices, potentially categorizing essential services—like snow removal—as local contributions, which could further restrict local funding options.
For instance, Anchorage school officials estimated a potential loss of at least $15 million in direct local funding for critical services such as student transportation and preschool programs.
The vague wording of the regulations raised concerns that the state’s new rules could broadly impact other municipal services provided to school districts.
Similarly, district officials in Juneau anticipated losing over $2 million in direct local funding, adding to the funding worries expressed by multiple school districts across the state.
While discussions regarding new limits on local contributions have taken place over several months, the state education department unveiled the proposed regulations only on Monday.
These were rapidly addressed in public discussions on Tuesday before being paused following intense public feedback during a 90-minute testimony session that included input from school administrators, parents, and teachers.
Lon Garrison, executive director of the Association of Alaska School Boards, vocalized profound opposition to the proposed regulations, asserting the need for a formal public process that allows opportunities for engagement.
Garrison indicated the regulations had not undergone proper vetting, warning they could significantly undermine local control over education funding.
“How can you approve such a sweeping change without understanding its full implications?” he questioned during the meeting.
The seven-member State Board of Education, which is appointed by the governor and tasked with overseeing the state’s public school system, met privately for an hour to receive legal advice before unanimously agreeing to delay the proposed regulations.
After the vote, Board Chair James Fields expressed regret if the emergency regulations had caused anxiety among families and school districts.
“Our intent is to just try to uphold the law and do what’s best for kids.
And so I think giving a time of public comment is definitely what’s best for kids,” Fields stated.
The regulations will now undergo a 30-day public comment period, with board members indicating that a decision on the final regulations could be made by December—coinciding with the time school districts typically begin their budget processes.
Education Commissioner Deena Bishop described the day as “positive” for the board, as numerous Alaskans had the opportunity to express their input.
She assured that the department was committed to collaborating with school districts to meet the necessary equity requirements.
“Our goal is not to create conflict with or among districts, nor have conflict with the department; rather, it is our responsibility to uphold Alaska law that guarantees equitable funding distribution to districts in our state,” Bishop communicated via email following the vote.
On Tuesday, Bishop emphasized that the regulations were essential to ensure the state would adhere to the disparity test—an obscure federal equity rule enforcing equitable distribution of educational funding.
Alaska currently receives tens of millions in federal funding known as “Impact Aid.”
The state can deduct most of this aid from its yearly contributions toward educational funding to school districts; however, this is only applicable if funding discrepancies between Alaska’s most- and least-funded districts are not excessive.
Notably, Alaska is the only state presently employing this disparity test to minimize educational funding across districts.
By missing the disparity test this past May, the state may now be liable for an additional $81 million expense to its school districts.
Given Alaska’s severe budget constraints, multiple lawmakers expressed uncertainty regarding the sourcing of this funding.
State education officials contend the emergency regulations were crucial for safeguarding the “general welfare” of the state and averting substantial fiscal consequences should the state fail the disparity test again.
The regulations were intended to come into force before the current fiscal year ended on June 30, which school administrators feared could necessitate drastic budget cuts in a short timeframe.
Prior to the board’s decision, Anchorage School District attorney Matthew Singer asserted that no genuine emergency existed and labeled the rushed legislation as “unlawful.”
He indicated the Anchorage School Board had instructed him to instigate legal action swiftly if the regulations proceeded.
“This is a manufactured emergency, but this board will own it if you vote for it,” he warned the board, urging members to carefully consider the implications of a vote in favor of the regulations.
The Alaska Legislature recently overrode Governor Mike Dunleavy’s veto of a comprehensive education package on May 20, which included a substantial $180 million annual increase in state school funding.
Nevertheless, Dunleavy hinted he might exercise line-item veto powers to curtail education funding due to ongoing fiscal uncertainties.
However, this funding increase does not address the ongoing disparity test issues, which pertain to the equity of Alaska’s educational funding from two fiscal years ago.
Alaska’s dire budget situation has prompted Governor Dunleavy to instate a freeze on new regulations, although the education department received a waiver to push through the new rules.
In an earlier instance in 2022, Alaska initially failed the disparity test due to the inclusion of transportation funding in the federal equity calculation; the state successfully appealed, resulting in that funding being excluded.
Currently, federal officials have identified transfers between school districts’ general funds and transportation funds as impermissible—a matter that several school administrators have indicated the proposed emergency regulations would not resolve.
The state education department assured they would release further information regarding the next steps once all possibilities for appeal had been thoroughly examined.
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