An Act relating An Act relating to public school funding; and providing for an effective date.

Updated: April 15, 1999

In 1995, the Alaska State Legislature passed CSSB 88(FIN) authorizing Alaskan charter schools. Alaskan charter schools have attracted an impressive cadre of educational enthusiasts who have struggled to make the charter schools work under Alaska law. Three years of experience have highlighted the areas of Alaskan charter school law that need adjustment. HB 197 addresses the issue of equitable funding.

Problem: Most of us thought that charter schools would be counted like any other separate school of similar size relative to funds generated by the students in those charter schools. "Alternative schools," if they have less than 200 students, are counted as part of the school in the district with the highest Average Daily Membership (ADM), AS 14.17.905. At least one school district defines charter schools as "alternative schools" to determine the amount of state aid flowing into that district. The effect is that a charter school can have a larger or smaller budget depending on the community and school district in which they happen to exist.

Solution: This bill simply clarifies that a charter school is not an alternative school for purposes of determining the amount of state contribution for the district. Because charter schools tend to be smaller than other public schools, the cost and amount generated by charter school students is higher, as reflected in the fiscal note. We feel this is a fair and equitable approach and reflects the legislature's commitment to quality education and education reform.

A U.S. Department of Education Charter School study shows that lack of funds, facilities, and opposition by school boards and districts are among the leading "difficult" or "very difficult" barriers faced by our nation's charter schools. Alaska is no exception. Unfortunately, when compared nationally, our charter school law has been rated "weak".

While we cannot provide full funding for facilities and start-up costs of charter schools, we can treat them fairly and ensure that they receive what they are due.