HB 280 - School Funding and Local Contribution Summary

• Changes local school district contributions from mandatory to discretionary, allowing borough and city school districts to "may" rather than "shall" provide local funding for school operations.

• Removes the required 2.65 mill tax levy requirement for city and borough school districts, instead allowing optional contributions up to the greater of a 2 mill levy or 23 percent of the district's basic need.

• Deletes language requiring the "required local contribution" to be subtracted from state aid calculations, making the funding formula dependent only on state aid and federal impact aid when local contributions are not made.

• Modifies charter school funding to exclude "required local contribution" from the calculation of funds generated by charter school students.

• Takes effect July 1, 2024, and repeals three subsections of AS 14.17.410 related to local contribution calculations.