Education funding predictability bill advances as legislators negotiate agenda for final days of session

HB 261 by Andi Story, D-Juneau, gets significant changes in Senate committee hearings, but retains core goal of ensuring school districts know sooner how much funding they have

Rep. Andi Story, D-Juneau, discussed her education funding bill with Rep. Ted Eischeid, D-Anchorage, during a House floor session on Monday, May 11, 2026. (Mark Sabbatini / Juneau Independent)

By Mark Sabbatini

Juneau Independent

A Juneau lawmaker’s bill that could significantly increase state education funding while also allowing districts to know sooner how much money they have to plan budgets took another step toward passing the Alaska Legislature with five days left in the regular session.

House Bill 261 by Rep. Andi Story, a Democrat, allows districts to use enrollment counts from prior years to secure per-student state funding rather than relying on current-year counts, since the latter may not be certified by spring when most districts draft budgets for the fiscal year that starts July 1. The current draft of the bill allows districts to use the previous year’s enrollment, an average of the previous three years or the current year.

But because it allows districts to choose the most lucrative of multiple options — and other funding has been added to the original legislation — officials estimate it will increase education funding by more than $120 million during the coming year and more in subsequent years. A $700 increase to the state’s Base Student Allocation the Legislature passed last year cost about $180 million.

The bill passed the House on Tuesday, and was moved out of the Senate Education Committee after hearings on Friday afternoon and Saturday morning.

HB 261 is now in the Senate Finance Committee, its last committee of referral before a floor vote, but if it clears that chamber the House will have to concur with changes made by the Senate to the bill.

Among the changes made by the education committee was removing a provision — added during House floor debate — putting a lower cap on what municipalities have to contribute to their districts, which legislative finance officials said would cost more than $30 million during the coming year and increase rapidly in subsequent years. It also boosts school funding by allowing pre-kindergarten students to count as full-time enrollees rather than half-time and ensures continued funding of the Alaska Reads Act.

HB 261 is now in the Senate Finance Committee, its last committee of referral before a floor vote, but if it clears that chamber the House will have to concur with changes made by the Senate to the bill.

Story’s bill is among numerous big-ticket bills in play as the Legislature and Republican Gov. Mike Dunleavy attempt to wrap up business at the Alaska State Capitol by 11:59 p.m. Wednesday. Among the other items are what legislators are referring to as a "mini-bus" education bill with funding and various policy provisions, an amended version of which is scheduled to be heard by the Senate Finance Committee on Monday.

The possibility of combining provisions of Story’s bill and the mini-bus bill was raised earlier this week by Sen. Löki Tobin, D-Anchorage, chair of the Senate Education Committee. But she said Saturday that now seems less likely.

Story and Tobin both noted the operating budget currently has enough funding for either HB 261 or a one-time boost to the BSA of up to about $150 million, but not both. Both also said they would seek passage of both HB 261 and the "mini-bus" bill, although the reality of that happening is far from certain.

"Anything’s possible in this building the last few days," Story said.

• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.