House passes HB 69, on education funding and reforms; Republicans say it’s not enough

The State House passed HB 69, its version of an education reform and funding bill, by a vote of 24-16. The bill makes a significant step forward in addressing school funding needs while incorporating key policy changes to balance fiscal responsibility and educational improvements, House leaders said.

Passage of the bill followed three days of intense debate and amendment actions on the floor of the House.

The bill includes a permanent $1,000 increase to the Base Student Allocation (BSA), providing more money for Alaska’s school districts. In addition, HB 69 introduces targeted education reforms designed to enhance school choice, accountability, and efficiency. Many parallel what Gov. Mike Dunleavy is attempting in his education bill, HB 82, but are differ from what the governor wants.

“HB 69 is not just about funding—it’s about strengthening Alaska’s public education system for the long term,” said House Speaker Bryce Edgmon (I-Dillingham). “This bill is the product of good-faith negotiations, reflecting input from legislators, the administration, and stakeholders.”

Key Provisions of HB 69:

• Base Student Allocation (BSA) Increase – Permanently raises the BSA by $1,000.

• Open Enrollment Policy – Expands school choice by allowing parents to enroll their children in any public school within their district.

• Charter School Reforms – Grants charter schools greater financial autonomy and extends contract terms.

• Education Task Force – Establishes a legislative task force to assess funding and policy improvements.

• Correspondence Study Program Oversight – Implements annual reporting requirements on enrollment, spending, and academic outcomes.

• Wireless Device Policy – Requires school districts to set policies for student cell phone use during school hours.

“House Bill 69 is a compromise-driven effort to make sure schools that are schools are supported in all their forms, and that we provide policy solutions to real problems in our system,” said HB 69 sponsor Rep, Rebecca Himschoot (NA-Sitka).

“This bill reflects a balanced approach, incorporating concerns from the Governor, the House Majority and Minority Caucuses, and concerned citizens across Alaska to ensure both funding stability and structural improvements,” said Rules Chair Rep. Louise Stutes (R-Kodiak). “HB 69 moves us forward in tackling the challenges facing Alaska’s schools."

HB 69 now moves to the Senate for further work.

Not surprising, the House Republican Minority was highly critical of the bill, calling it a massive, unfunded spending increase that fails to deliver the real reforms that students, parents, and teachers have been asking for.

“Despite efforts by House Republicans to introduce policies that would have make meaningful improvements to Alaska’s struggling educational system, the Majority rejected nearly all of them,” Minority Republicans said in a statement.

“Parents and teachers have called for smaller class sizes, expansion of Career and Technical Education opportunities, school choice, and consolidating administrative costs so that more money can be spent in the classroom, among other policy changes,” the statement said.

House Republicans put forward dozens of amendments to address these issues. However, the House Democrat Majority rejected all but four of them. “Instead, they passed a bill that funnels money into the system without the necessary reforms to ensure real progress for students,” the statement said.

Several amendments that could make a difference were rejected, Republicans said.

Amendments were offered that focused on reducing class sizes, expanding school choice, increasing transparency, enhancing workforce development for skilled trades, and ensuring fairness.

“These amendments were not radical ideas—they were common-sense policies that would have helped children succeed,” the statement said.

The House Majority dismissed nearly all of them, including:

• Capping Class Sizes – A straightforward way to ensure students receive more individual attention from teachers.

• Career and Technical Education (CTE) Expansion – Strengthening opportunities for students preparing for careers in the trades and workforce.

• School Construction Grants - Shortens the planning period from six to three years, streamlines applications, strengthens maintenance requirements, streamlines project prioritization, and could save the state millions in future expenditures.

• Fairness for Special Needs Students – Addressing the disparities in resources and services for students who need them most.

• Competitive Bidding for Internet Providers – Would require districts to out competitive Requests for Proposals every two years.

• Consolidate School Districts – Reduce overhead by combining multiple school districts.

• Open Enrollment Policies – Letting parents choose the best school for their child, rather than being locked into a geographic location that doesn’t best support their child.

• Reducing Bureaucracy for Charter Schools – Giving families more high-quality education options by eliminating unnecessary obstacles.

• Equal Funding for Correspondence Students – Treating all students equally, no matter where or how they learn

"It is disheartening that we could not get the Majority to recognize how critical these reforms are," said House Minority Leader Mia Costello (R-Anchorage)."Parents have been calling for these changes, teachers have been asking for help, and students are the ones paying the price for this inaction."

“The idea that just because we have flat-funded a small portion of the foundation formula means that we have flat-funded education is completely wrong,” stated Representative Kevin McCabe (R-Big Lake). “It's a hundred percent the wrong way to fund education, and if any Alaskan that doesn't understand, then they’re not paying attention. We love our children. We love education. We want to fund education. We want to fund our schools. We want to fund the districts. This is the wrong way.”

Small Victories, But Not Enough

A few amendments did pass, offering minor improvements, but they do not change the fact that HB 69 is lacking real policy improvement.

Deletion of Voucher Language – Removed unnecessary and benign intent language which referenced school vouchers.

Charter School Termination Appeals & Addition of State Charter School Coordinator – Provides charter schools with due process and protections from arbitrary closures; also adds a charter school coordinator to assist and advise those wanting to start a charter school.

School District Accountability Measures – Increases transparency in how districts measure and report student achievement.

One of the most troubling arguments against reform was that certain changes could risk losing federal education funding. But Alaska should not be shaping its policies out of fear of Washington, D.C.’s approval.

The challenges we face here are unique, and we should be charting our own path to improving education—not deferring to federal guidelines that do not reflect the needs of Alaskan students and families.

“There's no reliable funding source for this bill. My guess is it's around $255 million dollars. But the reason I don't know that is because we are about to pass a bill that doesn’t have an accurate fiscal note,” stated Representative Will Stapp (R-Fairbanks). “The only way I can see the majority funding the bill this year is to use the PFD. However, to fund this sustainably the majority needs to be honest with people and say that they’re going to be taxed.”

“HB 69 is deeply flawed and so was today’s process," said House Minority Whip Cathy Tilton (R-Wasilla), "The bill provides very little meaningful policy changes to improve outcomes in Alaska’s schools, creates an unfair and unnecessary task force and proposes a massive spending increase that will shrink dividends long into the future."

This is not the end of the conversation, but it is a disappointing moment for those who believed Alaska could do better. Our children deserve more than what was passed today.