Messy standoff in state House ends with $175 million increase for schools

The state House was embroiled in a messy floor fight through much of last week over a controversial education bill last week that had stalled almost other legislative work. But it came to an end Thursday night when Senate Bill 140, heavily amended, passed the House 38-2.

The only votes no were from Rep. David Eastman, R-Wasilla, and Rep. Mike Prax, R-North Pole.

A final, hard-fought compromise includes a $680 increase in the Base Student Allocation, the formula that guides state funding for school districts, which will increase money for schools by $175 million per year.

Not everyone is happy with the outcome. More is needed in the BSA to offset years of accumulated inflation, many educators say, but it will still be a big boost for school districts struggling with deficits and soaring fixed costs, such as for fuel and insurance.

The bill also contains money for charter schools and correspondence students, which are priorities for the House Republican leadership as well as Gov. Mike Dunleavy.

The big unknown now is how the governor feels about the compromise. Dunleavy has final veto authority over what the Legislature enacts unless the veto is overridden, which is unlikely.

The governor has pushed strongly for “targeted” increases in aid to schools, or funding for specific programs, instead of a general increase in funding through a BSA increase where the local school board decides what the money is spent on.

The governor has said he does not support a large BSA increase without the targeted provisions, such as more money for charter schools and correspondence study as well as retention bonuses for teachers, a cause the Dunleavy has championed.

The governor’s decision on larger issues like the BSA increase may hinge on how he views the package of other priorities agreed on by the Legislature. If the BSA amount is too large, in his opinion, or not enough of the targeted programs are included, he could still veto the bill.

That could also doom the internet funds for rural schools for another year, of course.

But with this contentious issue out of the way, at least for now, lawmakers can turn their attention to other urgent needs like encouraging more natural gas production in Cook Inlet. Also, A proposed constitutional amendment to guarantee Alaskans a Permanent Fund Dividend, or PFD, is also on the House floor to be taken up. That is itself a major issue.

Meanwhile, as the House was stalled through most of last week the state Senate continued with its legislative business, including the start of public hearings on the state budget for Fiscal Year 2025, the financial year beginning next July.

Senate committees also approved a statewide residential building code and two workers’ compensation bills aiming to increase funds for rehabilitation for injured worker and to guarantee the safety of a fund that guarantees payment for treatment if an employer fails to secure workers’ compensation insurance.

All three bills moved out of the Senate Labor and Commerce Committee last Wednesday, Feb. 21. The House will now resume its work on the budget and other legislation. Most scheduled House committee meetings were cancelled last week.

Through much of last week the action on SB 140 was blocked after a string of 20-20 votes on procedural motions. A split vote means no action is taken. This prompted intense negotiations between the Republican House Majority, which had developed the controversial education bill in a new version of SB 140, and the House Minority, led by Democrats and independents, who objected to the Republican bill.

An interesting aspect in the tie votes was the role of Rep. David Eastman, R-Wasilla, who operates independently of the House Republican Majority and, in this debate, has cast his one vote on one side or the other to often be the deciding vote.

SB 140 passed the Senate last year as a simple bill increasing the requirement for internet speeds for schools. This would have opened the door to substantial new federal funds to install internet facilities that serving schools mainly in rural areas.

A deadline for this is looming for this in just a few days, in late February, so the Senate will have to move quickly to approve the compromise House bill. The governor must also make his decision quickly.

If the bill doesn’t clear the hurdles by late February rural school districts will essentially have to wait another year.