CSHB 27(EDC) Summary

• Increases the unreserved school operating fund balance limit from 10 percent to 15 percent of district expenditures under AS 14.17.505(a).

• Restricts borough school assemblies from reallocating or reappropriating locally-appropriated school funds for other purposes unless the unrestricted year-end fund balance exceeds the amount set in AS 14.17.505(a).

• Adds supplemental funding provisions for school districts experiencing enrollment increases of at least 200 students or 3 percent (whichever is less) from one fiscal year to the next, or allows districts to request supplemental funding if unable to meet current year needs.

• Allows school districts experiencing enrollment decreases of 5 percent or more in adjusted average daily membership to use a prior base fiscal year to offset the decrease over three years using a phased percentage method (75 percent, 50 percent, 25 percent).

• Repeals AS 14.17.500 (student count estimate requirements) effective July 1, 2015, and adjusts student count reporting procedures to align with current fiscal year adjustments.