AK HB122

Eliminates the mandatory local contribution requirement for city and borough school districts, which currently requires the equivalent of a 2.65 mill tax levy on taxable property (capped at 45% of basic need)

Makes local contributions optional rather than required, allowing city/borough assemblies to choose whether to provide local school funding

Retains the optional local contribution cap at the greater of a 2 mill tax levy equivalent or 23% of the district's basic need plus additional funding

Expands state responsibility to provide funding for all public school districts described in AS 14.12.010, not just Regional Educational Attendance Areas

Takes effect July 1, 2025