The Crazy-Quilt of Education Funding

by Representative Terry Martin

An interesting spreadsheet crossed the desks of the members of the House Finance Committee the other day. It brought into focus more clearly than anything I’ve seen yet why the state’s K-12 education formula funding needs to be rewritten. What a hodgepodge!

The spreadsheet shows changes in average daily membership (ADM) from last year to this, as well as how much in state funding each school district receives. The ADM formula counts numbers of kids and adds bonus points or partial points for special needs and circumstances.

Interestingly, all the school districts that have gone down in student count had a drop in state funding, but by widely varying rates; while other districts went up in membership but also went down in state funding. Most districts have gone up in ADM and state funding, but, again, not all at the same rates. Apparently, not all districts and kids are created equal.

Evaluate these examples: The Aleutian Region school district increased its ADM from 34 to 36 and received $80,000 more in state aid. That’s a whopping $40,000 per new pupil. At the same time, Mat-Su increased from 12,352 to 12,777, up 425 new students. Its state aid increased by $1,466,802. That’s just $3,451 per ADM, way below the statewide average of $4,876 per ADM. Fairbanks increased by 216 in its student count, but gained $1,124,611 in state aid, an average of $5,206.

The Chugach school district gained ten in its ADM count, but received $56,598 less in state aid. Ketchikan went down by 125, and lost $666,262 in state aid, an average of $5,330 per ADM. By contrast, Yukon/Koyukuk School District lost 10 students, but gave up $221,903 in state aid, an average of $22,000 per ADM.

The document shows that 21 districts had fewer students this year than last, adding up to a total loss of 509. One district, Galena, increased by 1177 new students over the total 161 for last year, evidently reflecting the opening of a new regional high school, receiving an increase of $4.5 million. But one has to wonder, since the new Galena school is pulling students from villages throughout the Interior and western Alaska, shouldn’t the numbers for those villages be drawn down by a total that would correlate closer to 1177? I sure hope there isn’t any double-counting and double payments going on.

In the Bethel region, the state allocates $10,700 per child, while in Anchorage the average allocation is $3,800--a thousand dollars below the state average.

It would be great to be able to say at this point that the facts are all there--let’s just change the foundation formula to fit the facts. Sure, it’s more expensive to educate the few students in a small school district out in the middle of the Alaska bush than it is in Anchorage or another urban district. There are efficiencies and economies of scale to be had in the urban areas. One superintendent for 46,000 kids is pretty darn efficient. One expensive superintendent--with staff--for 300 kids is not.

But is there the political will in the Legislature to push through changes to the formula? This is one of the most controversial, hard-fought battles the Legislature is likely to face this year, right up there with subsistence. It is no wonder we have been avoiding it like the plague for years.

The Senate Finance Committee has been struggling over a new fair funding formula for the past year-and-a-half, and is on the brink of a good, non-wasteful solution. School districts that will receive less are fighting for no change. The majority of citizens must now come to the support of the Senates’ efforts and help to bring about a sensible allocation of education dollars.

Microsoft 97 & 5.0/95 Workbook Excel PC file