AK HB350

Reduces the required local contribution for city or borough school districts from a 4 mill tax levy to a 2.7 mill tax levy, effective July 1, 2010.

Lowers the local contribution requirement for newly established school districts in their second year of operation from 2 mill to 1.35 mill tax levy.

Reduces the third-year local contribution requirement for newly established school districts from 3 mill to 2 mill tax levy.

Changes the assessed value calculation for determining local contributions to use the "preceding fiscal year" as the base year instead of a fixed 1999 base year, with only 50 percent of annual assessed value increases counting toward the calculation.

Establishes a graduated enrollment decline offset method allowing school districts experiencing 5 percent or greater enrollment decreases to use prior year ADM figures at 75 percent, 50 percent, and 25 percent levels over three successive fiscal years.