AK HB406

Amends school funding calculations to allow districts to use the fiscal year before consolidation as a base year to offset funding decreases when one or more schools consolidate with other schools in the same community and district for up to four fiscal years following consolidation.

Establishes specific formulas for calculating adjusted average daily membership (ADM) for consolidated schools in years 1-4 after consolidation, with percentages of 100%, 100%, 66%, and 33% respectively applied to offset funding reductions.

Prohibits districts from offsetting consolidation-related funding decreases if a new facility is constructed for the consolidation, and limits school reconsolidation to once every seven years for the same school.

Requires districts offsetting consolidation-related decreases to provide the Department of Education with a list of schools participating in the consolidation and their corresponding ADM.

Clarifies that in communities with ADM greater than 425 having only one facility serving kindergarten through 12, the facility shall be counted as one school for state aid calculation purposes.