Alaska faces consequences as federal education funding equity dispute continues

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Alaska faces consequences as federal education funding equity dispute continues
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State officials offered feds a $300,000 compromise instead of a $17 million adjustment.

A dispute between Alaska’s education officials and their federal counterparts over whether the state spent pandemic relief equitably has had its first tangible consequence: The state must receive a federal OK before it can spend nearly $1 million in grants.” for receiving future grants because it says the state has not equitably distributed funds among its districts. State officials contest this assertion.

One looming possibility that has legislators and district superintendents concerned is that the federal government could withhold future grant money from Alaska schools, or even take grant money back, but that has not yet happened. Austin Reid, the National Conference of State Legislatures’ lead federal education policy analyst, said the maintenance of equity provision is “an unusual and, in some ways, extraordinary federal authority.” Typically, states have authority over how they fund education. Reid briefed legislators on the provision in April.

Reid said Alaska is not alone in that regard: Many states’ complex funding formulas do not align neatly with the federal maintenance of equity test, which is based only on a student’s income. He estimated that more than 40 states have struggled to meet the maintenance of equity requirements. Despite this, Alaska’s current dilemma is unique. Though many states have struggled with compliance, Alaska is the only state that has not resolved the issue.Federal officials say the state did not maintain equity over two years. The alleged inequity closest at hand is the 2022 fiscal year, for which they say the state owes the Kenai Peninsula Borough School District $5.48 million and Anchorage School District $6.4 million.

It remains to be seen whether the administration of Gov. Mike Dunleavy will approve or veto the money. The budget was transferred to Dunleavy’s office on June 5 and he must decide whether to sign or veto it by June 28.

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