An Act relating to the base student allocation used in the formula for state funding of public education; and providing for an effective date.

The public K-12 Education Funding Formula is based on a specific dollar amount per student. Sponsor Substitute for Senate Bill 1 increases the current base student allocation by $94, establishing the per student dollar at $4,263.

Sponsor Substitute for Senate Bill 1 recognizes that inflation has an impact on public school funding. The proposed increase in the base student dollar is based on a 2.25 percent rate of inflation for 2003. The $94 raise in the student dollar will help our local school boards to address a portion of the financial dilemma facing all 53 school districts.

In addition to the normal financial pressures that confront our local schools, this year Alaska school districts are struggling with unforeseen high expenditures. A four to five percent increase in PERS/TRS contribution as well as extraordinary high increases in health care costs has forced many local school boards to propose school budgets with millions of dollars in cuts. The suggested reductions will negatively impact the quality of education offered to over 132,000 students statewide. Sponsor Substitute for Senate Bill 1 offers a starting point to discuss the overall financial needs of our school system. I welcome you to join in this discussion.

Please join me in endorsing and passing Sponsor Substitute for Senate Bill 1.

# # #