AK HB261

Requires districts to use the greater of their current year ADM (average daily membership) or their previous three-year average ADM when calculating student counts for funding purposes, providing enrollment stability protection

Modifies intensive services funding for special education students to allow districts to use the highest count from multiple options: previous October 15, current October 15, current February 15, or the three-year average of October 15 counts

Eliminates the existing "hold harmless" provision that provided phased funding protection (75%, 50%, 25%) for districts experiencing enrollment declines of 5% or more

Removes the requirement that alternative schools with fewer than 175 students be counted as part of the district's highest-ADM school, allowing them to be counted as separate schools

Takes effect July 1, 2026, with transition provisions for fiscal years 2027-2029 when historical data needed for three-year averages is unavailable