House majority presses for quick increase in base student allocation with House Bill 69

Representative Hemshutt, House education co-chair from Sitka, said the House majority plans to push House Bill 69 to increase the base student allocation and relieve districts facing program and school closures.

"We're seeing cuts to programs that no one wants to lose and we're beginning to cut into programs that we just can't lose," Representative Hemshutt said, citing testimony and examples from districts she described as "absolutely crumbling under the pressures" of flat funding and inflation.

House Bill 69 would raise the base student allocation (BSA), the core of Alaska's school funding formula, and return purchasing power to roughly where it was in 2011, supporters said. The bill is intended to give local school boards control over additional funds to target local priorities.

The bill’s sponsors and House members emphasized why timing matters: districts are finalizing budgets and leaders said some are already closing schools, consolidating districts or cutting essential services. "The ship is sinking," Representative Hemshutt said, arguing for faster-than-usual action from the finance process to get an increase to the governor early enough to affect local budgeting.

Supporters noted public input: Hemshutt said more than 500 people submitted written comments, with roughly 90% backing some increase in the BSA. Lawmakers cited numbers discussed in public comments and interviews — previous proposals and estimates mentioned included a 680-dollar increase, an 800 spread-over-two-years figure, and higher targets school advocates said would better match inflation; one speaker said "by rights" the BSA increase should be closer to $2,000 to match inflation since 2011.

Representative Josephson, operating budget co-chair in the finance committee, said the House and other caucuses have had "fruitful" and continuing discussions with the governor's office and the Senate about education funding and policy. Josephson said he will "run these numbers" to identify affordable options and noted budget tradeoffs with other priorities including the Permanent Fund dividend and maintenance needs.

Lawmakers repeatedly separated funding from policy changes: supporters said HB 69 is primarily a funding bill to restore purchasing power and that policy changes could follow in separate legislation. Hemshutt and other House majority members argued that increasing the BSA quickly gives districts the capacity to avoid immediate layoffs and program cuts; they said policy reforms could be considered after stabilizing finances.

What’s next: House leaders said HB 69 is moving through the House Finance Committee and will be vetted with testimony and actuarial and budget analysis. No formal vote or final numbers were announced during the press availability.

Ending

Lawmakers said they are prepared to negotiate with the governor and the Senate and that timing will be a priority so local districts can use any increase when they finalize budgets this year.