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Rep. Andy Story presents HB 28, a teacher loan‑repayment pilot and K–12 funding package
Summary
Representative Andy Story introduced HB 28, combining a three‑year student loan repayment pilot for teachers (up to $5,000 per year, funded at $1 million annually) with one‑time energy relief ($~43.9M), a 10% transportation funding increase and reading proficiency grants; university and district leaders supported the bill and the committee reviewed fiscal notes before setting the bill aside.
Representative Andy Story presented House Bill 28 as a multi‑part education package designed to recruit and retain teachers and to stabilize district operating costs.
Story said HB 28 would establish a three‑year pilot student loan repayment program for certified teachers in priority fields — special education, English language learner instruction and STEM — that "would repay up to $5,000 per year to the student loan lender for up to 3 years." He said the pilot would be funded from the Higher Education Investment Fund at $1,000,000 per year and described the program as an incentive to keep teachers in Alaska or attract Alaskans back to teach here.
The bill also includes a one‑time energy relief payment to school districts of roughly $43.7 million to cover heating and electricity costs for the upcoming school year, a 10% increase in state per‑pupil transportation funding to address high fuel costs, and expanded reading proficiency grants and an adequacy study of the state's education funding formula. Story said repealing the conditional language from a prior law (House Bill 57, 2025) would allow districts to receive $21,800,000 in reading proficiency grants and an estimated $9,700,000 in additional career and technical education funding beginning FY2027.
Dr. Bridgette Weiss, liaison to the Alaska College of Education Consortium at the University of Alaska, testified in support and described university scholarships, Grow‑Your‑Own programs and other efforts to prepare and retain teachers. "House Bill 28 represents one important piece of that solution," Weiss said.
Patrick Mayer, superintendent of the Alaska Gateway School District, also supported the bill and emphasized that rising energy and transportation costs force districts to redirect classroom resources. Mayer urged the committee to approve measures that stabilize district budgets and protect instructional services.
Senator Kiel read multiple fiscal notes into the record: a district‑by‑district breakdown attached to certain components, a first‑year UGF energy funding item of $43,874,000 for FY27, and a public education fund capitalization entry of $17,065,900 UGF to fund pupil transportation and career technical education pass‑throughs. Kiel also read a program administration fiscal note for the loan repayment program reported in the hearing as about $1,045,000 first year for the Commission on Postsecondary Education to administer the program; committee staff said departments will need to update regulations to implement parts of the bill.
Senator Cronk pressed on retention safeguards, asking whether recipients would be required to teach a consecutive multi‑year term to receive funds. Representative Story said the pilot is structured as annual repayments tied to service: a teacher receives each year's $5,000 payment after completing that year of service, and the three‑year pilot is intended to test retention before considering longer commitments.
The committee did not take final action on HB 28 and set the bill aside for further consideration; staff questions and departmental clarifications were requested before the next hearing.
