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Yahoo
4 days ago
- Business
- Yahoo
APFC Board Examines Asset Allocation, Approves Targeted Portfolio Adjustments
SITKA, Alaska, May 30, 2025--(BUSINESS WIRE)--The Board of Trustees of the Alaska Permanent Fund Corporation (APFC) held its quarterly meeting and the Ethics, Audit, & Cybersecurity Committee meeting in Sitka and via webinar on May 28 and 29. During the Board meeting, the Trustees reviewed the Fund's asset allocation study, approved the FY26 operating budget alongside Board Resolution 25-01, and advanced strategic shifts within the Real Estate portfolio, as well as the Public Equities and Fixed Income portfolios. The APFC Board conducts one meeting a year in a rural or remote area to broaden public engagement and increase awareness of the Permanent Fund. The Board appreciated Senator Stedman's and Representative Himschoot's participation, reflecting the importance of legislative partnership in advancing stakeholder accountability and support for the proposed single-fund endowment constitutional amendment. "We thank the community of Sitka for their hospitality, the local legislative delegation for their attendance, and the opportunity to present to the Sitka Assembly. By holding meetings in communities throughout our great state, we reaffirm our responsibility to be accountable and accessible stewards of Alaska's greatest financial resource," said Chair Jason Brune. Performance The Permanent Fund's total value was $80.8 billion at the quarter's close, reflecting steady growth amid ongoing market complexity. As of March 31, 2025, the Fund returned 4.55% for the fiscal year, outperforming its performance benchmark by 29 basis points (bps), matching the passive benchmark, and trailing the Return Objective of 5.50%. Over the 5-year period, the Total Fund's performance delivered strong relative results at 10.49%. The Fund outperformed its three benchmarks: the passive index of 9.71%, the performance benchmark of 9.93%, and the Real Return Objective of 9.38%. "Our focus has always been on building a resilient portfolio that performs over time, not chasing short-term trends or looking backwards with the benefit of hindsight," said Chief Investment Officer Marcus Frampton. "We are committed to a disciplined, forward-looking strategy designed to meet the needs of Alaskans." APFC's Investment Consultant, Callan, reviewed the Fund's performance, offering insights into current market conditions, benchmark comparisons, and broader macroeconomic trends, noting that trailing quarter performance places the total Fund above median relative to large public funds and the large endowments/foundations peer group. Investment Advisory Group The Board values the Investment Advisory Group's (IAG) guidance, expertise, and its important role in supporting the Fund's long-term stewardship. The Board voted to appoint Janet Becker-Wold, CFA, to the IAG and appreciates the interest of all the candidates in response to the competitive state procurement. Britt Harris concluded his IAG service in May 2025, expressing appreciation and gratitude. Chair Brune noted, "We are very grateful to Britt Harris for his service and contributions to the Board. And, we are excited to welcome Janet Becker-Wold to the IAG, whose expertise will support the Board's oversight and strengthen our commitment to informed, disciplined governance." Risk & Compliance Chief Risk & Compliance Officer Sebastian Vadakumcherry delivered a comprehensive Risk & Compliance overview. The report affirmed the Fund remains well within its approved risk tolerances, with key indicators showing healthy margins relative to established thresholds. The presentation also included an analysis of asset class contributions to risk, geographic and currency exposures, and compliance monitoring activity. Private Income: Asset Class Overview Ross Alexander, Senior Portfolio Manager, and Terek Rutherford, Associate, provided an update on APFC's Private Income portfolio, covering recent activity, performance, and thematic trends across Infrastructure and Private Credit. In line with the asset class's strategic direction, APFC continues to increase co-investment activity to capture higher returns and reduce fee burdens. Since its inception, the portfolio has generated more than $5.4 billion, underscoring its role in delivering stable, enduring value. Real Estate: Asset Class Strategic Updates Allen Waldrop, APFC Deputy CIO of Private Markets, and Eric Ritchie, Senior Portfolio Manager, who now leads the Real Estate portfolio, provided an update on the asset class, highlighting its role in the Fund, drivers of recent performance, and strategic shifts to enhance long-term performance and resilience. Annual Asset Allocation Review In considering the portfolio's asset allocation, the Board and staff affirmed APFC's mandate to manage the portfolio for a maximum risk-adjusted return, while acknowledging the state of Alaska's dependence on an annual 5% market draw from the Fund's earnings under the current two-account structure. After thoughtful review and discussion, the APFC Board of Trustees unanimously elected to maintain the existing asset allocation targets for the portfolio, citing continued uncertainty and volatility in global markets. Vice Chair Adam Crum and Trustees Ethan Schutt and Craig Richards were appointed to a working group to further explore a multi-year approach to asset allocation, recognizing the importance of purposeful planning in light of an evolving market environment. The following asset allocation targets for FY26 were adopted by the Board of Trustees effective July 1, 2025: • Public Equities 32% (no change) • Fixed Income 20% (no change) • Private Equity 18% (no change) • Real Estate 11% (no change) • Private Income 10% (no change) • Absolute Return 7% (no change) • Tactical Opportunities 1% (no change) • Cash 1% (no change) • TOTAL: 100% While the Board is responsible for setting asset allocation, APFC staff are tasked with executing the Investment Policy to optimize risk-adjusted returns within established guidelines and make specific investments. The policy allows staff to respond to market conditions dynamically through allocation bands. "The Board's direction to maintain the current asset allocation targets into FY26 continues to provide a strong strategic foundation for the Fund," said Frampton. "We are focused on executing with discipline and precision to meet our long-term return goals, and we believe the Fund is well-positioned to navigate a complex market environment." Alongside the asset allocation discussion, the Board voted to affirm a staff proposal for a phased reduction in Tracking Error (TE) limits for both the Public Equities and Fixed Income asset classes – aiming to reduce high levels of volatility while maintaining flexibility to outperform. The plan reduces TE limits for the portfolios as follows: Public Equities: 350 to 200 bps (by Dec. 31, 2025) and then to 100 bps (by Dec. 31, 2026). Fixed Income: 250 to 150 bps (by Dec. 31, 2025) and then to 75 bps (by Dec. 31, 2026). Additionally, the Board unanimously approved staff recommendations to expand the Real Estate asset class benchmark to 'Expanded NPI,' remove REITs from the benchmark, and adopt a 10% limit to REITs in the portfolio. The Board also directed that staff work to reduce exposure to direct real estate holdings by 50% over the next 5 years. Updates will be effective as of July 1, 2025, and will be reflected in the Investment Policy. Budget Review and Approval The Board unanimously approved the FY26 proposed budget in alignment with its strategic plan initiatives and previously established guidance. Trustees reaffirmed the importance of annual rules-based statutory inflation-proofing of the Permanent Fund's Principal and their position that the $4 billion special appropriation in FY22 to the Principal cannot be retroactively labeled as such. The Board encouraged the Legislature to honor its commitment to annual inflation-proofing under the two-account structure, emphasizing the importance of consistent rules-based discipline for intergenerational equity. Trustees look forward to working further with the Legislature on this issue. Ethics, Audit, & Cybersecurity Committee The Ethics, Audit & Cybersecurity Committee reviewed the FY25 Audit Plan with KPMG and considered the internal operational risk assessment, reaffirming APFC's commitment to governance transparency, robust financial oversight, and strong internal controls. Chief Financial Officer Valerie Mertz and Senior Portfolio Accountant Jacki Mallinger presented the fiscal year-to-date financial performance updates, and Chief Risk & Compliance Officer Sebastian Vadakumcherry provided a detailed Internal Controls Review. The Committee also held an executive session for a cybersecurity update with Chief Information Technology Officer Scott Balovich, reinforcing the ongoing diligence to protect assets. The next meeting of the Board of Trustees and Ethics, Audit & Cybersecurity Committee Meeting will be on September 2, 2025, virtually via Teams Webinar. About APFC The Alaska Permanent Fund Corporation (APFC) manages the assets of the Alaska Permanent Fund, a globally recognized sovereign wealth fund. Established in 1976, the Fund preserves Alaska's nonrenewable mineral and oil wealth as a renewable financial resource for current and future generations of Alaskans. The Fund also serves as the primary source of revenue for Alaska's unrestricted general funds, supporting the state's economic stability and prosperity. APFC is a quasi-independent state agency with one mission: to manage and invest the assets of the Alaska Permanent Fund and other funds designated by law. The Alaska Permanent Fund is the largest sovereign wealth fund in the U.S., with $81.4 billion in assets as of April 30, 2025. For more information, visit View source version on Contacts Paulyn Swanson 907.796.1520 – pswanson@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
4 days ago
- Business
- Business Wire
APFC Board Examines Asset Allocation, Approves Targeted Portfolio Adjustments
SITKA, Alaska--(BUSINESS WIRE)--The Board of Trustees of the Alaska Permanent Fund Corporation (APFC) held its quarterly meeting and the Ethics, Audit, & Cybersecurity Committee meeting in Sitka and via webinar on May 28 and 29. During the Board meeting, the Trustees reviewed the Fund's asset allocation study, approved the FY26 operating budget alongside Board Resolution 25-01, and advanced strategic shifts within the Real Estate portfolio, as well as the Public Equities and Fixed Income portfolios. The APFC Board conducts one meeting a year in a rural or remote area to broaden public engagement and increase awareness of the Permanent Fund. The Board appreciated Senator Stedman's and Representative Himschoot's participation, reflecting the importance of legislative partnership in advancing stakeholder accountability and support for the proposed single-fund endowment constitutional amendment. 'We thank the community of Sitka for their hospitality, the local legislative delegation for their attendance, and the opportunity to present to the Sitka Assembly. By holding meetings in communities throughout our great state, we reaffirm our responsibility to be accountable and accessible stewards of Alaska's greatest financial resource,' said Chair Jason Brune. Performance The Permanent Fund's total value was $80.8 billion at the quarter's close, reflecting steady growth amid ongoing market complexity. As of March 31, 2025, the Fund returned 4.55% for the fiscal year, outperforming its performance benchmark by 29 basis points (bps), matching the passive benchmark, and trailing the Return Objective of 5.50%. Over the 5-year period, the Total Fund's performance delivered strong relative results at 10.49%. The Fund outperformed its three benchmarks: the passive index of 9.71%, the performance benchmark of 9.93%, and the Real Return Objective of 9.38%. 'Our focus has always been on building a resilient portfolio that performs over time, not chasing short-term trends or looking backwards with the benefit of hindsight,' said Chief Investment Officer Marcus Frampton. 'We are committed to a disciplined, forward-looking strategy designed to meet the needs of Alaskans.' APFC's Investment Consultant, Callan, reviewed the Fund's performance, offering insights into current market conditions, benchmark comparisons, and broader macroeconomic trends, noting that trailing quarter performance places the total Fund above median relative to large public funds and the large endowments/foundations peer group. Investment Advisory Group The Board values the Investment Advisory Group's (IAG) guidance, expertise, and its important role in supporting the Fund's long-term stewardship. The Board voted to appoint Janet Becker-Wold, CFA, to the IAG and appreciates the interest of all the candidates in response to the competitive state procurement. Britt Harris concluded his IAG service in May 2025, expressing appreciation and gratitude. Chair Brune noted, 'We are very grateful to Britt Harris for his service and contributions to the Board. And, we are excited to welcome Janet Becker-Wold to the IAG, whose expertise will support the Board's oversight and strengthen our commitment to informed, disciplined governance.' Risk & Compliance Chief Risk & Compliance Officer Sebastian Vadakumcherry delivered a comprehensive Risk & Compliance overview. The report affirmed the Fund remains well within its approved risk tolerances, with key indicators showing healthy margins relative to established thresholds. The presentation also included an analysis of asset class contributions to risk, geographic and currency exposures, and compliance monitoring activity. Private Income: Asset Class Overview Ross Alexander, Senior Portfolio Manager, and Terek Rutherford, Associate, provided an update on APFC's Private Income portfolio, covering recent activity, performance, and thematic trends across Infrastructure and Private Credit. In line with the asset class's strategic direction, APFC continues to increase co-investment activity to capture higher returns and reduce fee burdens. Since its inception, the portfolio has generated more than $5.4 billion, underscoring its role in delivering stable, enduring value. Real Estate: Asset Class Strategic Updates Allen Waldrop, APFC Deputy CIO of Private Markets, and Eric Ritchie, Senior Portfolio Manager, who now leads the Real Estate portfolio, provided an update on the asset class, highlighting its role in the Fund, drivers of recent performance, and strategic shifts to enhance long-term performance and resilience. Annual Asset Allocation Review In considering the portfolio's asset allocation, the Board and staff affirmed APFC's mandate to manage the portfolio for a maximum risk-adjusted return, while acknowledging the state of Alaska's dependence on an annual 5% market draw from the Fund's earnings under the current two-account structure. After thoughtful review and discussion, the APFC Board of Trustees unanimously elected to maintain the existing asset allocation targets for the portfolio, citing continued uncertainty and volatility in global markets. Vice Chair Adam Crum and Trustees Ethan Schutt and Craig Richards were appointed to a working group to further explore a multi-year approach to asset allocation, recognizing the importance of purposeful planning in light of an evolving market environment. The following asset allocation targets for FY26 were adopted by the Board of Trustees effective July 1, 2025: • Public Equities 32% (no change) • Fixed Income 20% (no change) • Private Equity 18% (no change) • Real Estate 11% (no change) • Private Income 10% (no change) • Absolute Return 7% (no change) • Tactical Opportunities 1% (no change) • Cash 1% (no change) • TOTAL: 100% While the Board is responsible for setting asset allocation, APFC staff are tasked with executing the Investment Policy to optimize risk-adjusted returns within established guidelines and make specific investments. The policy allows staff to respond to market conditions dynamically through allocation bands. 'The Board's direction to maintain the current asset allocation targets into FY26 continues to provide a strong strategic foundation for the Fund,' said Frampton. 'We are focused on executing with discipline and precision to meet our long-term return goals, and we believe the Fund is well-positioned to navigate a complex market environment.' Alongside the asset allocation discussion, the Board voted to affirm a staff proposal for a phased reduction in Tracking Error (TE) limits for both the Public Equities and Fixed Income asset classes – aiming to reduce high levels of volatility while maintaining flexibility to outperform. The plan reduces TE limits for the portfolios as follows: Public Equities: 350 to 200 bps (by Dec. 31, 2025) and then to 100 bps (by Dec. 31, 2026). Fixed Income: 250 to 150 bps (by Dec. 31, 2025) and then to 75 bps (by Dec. 31, 2026). Additionally, the Board unanimously approved staff recommendations to expand the Real Estate asset class benchmark to 'Expanded NPI,' remove REITs from the benchmark, and adopt a 10% limit to REITs in the portfolio. The Board also directed that staff work to reduce exposure to direct real estate holdings by 50% over the next 5 years. Updates will be effective as of July 1, 2025, and will be reflected in the Investment Policy. Budget Review and Approval The Board unanimously approved the FY26 proposed budget in alignment with its strategic plan initiatives and previously established guidance. Trustees reaffirmed the importance of annual rules-based statutory inflation-proofing of the Permanent Fund's Principal and their position that the $4 billion special appropriation in FY22 to the Principal cannot be retroactively labeled as such. The Board encouraged the Legislature to honor its commitment to annual inflation-proofing under the two-account structure, emphasizing the importance of consistent rules-based discipline for intergenerational equity. Trustees look forward to working further with the Legislature on this issue. Ethics, Audit, & Cybersecurity Committee The Ethics, Audit & Cybersecurity Committee reviewed the FY25 Audit Plan with KPMG and considered the internal operational risk assessment, reaffirming APFC's commitment to governance transparency, robust financial oversight, and strong internal controls. Chief Financial Officer Valerie Mertz and Senior Portfolio Accountant Jacki Mallinger presented the fiscal year-to-date financial performance updates, and Chief Risk & Compliance Officer Sebastian Vadakumcherry provided a detailed Internal Controls Review. The Committee also held an executive session for a cybersecurity update with Chief Information Technology Officer Scott Balovich, reinforcing the ongoing diligence to protect assets. The next meeting of the Board of Trustees and Ethics, Audit & Cybersecurity Committee Meeting will be on September 2, 2025, virtually via Teams Webinar. About APFC The Alaska Permanent Fund Corporation (APFC) manages the assets of the Alaska Permanent Fund, a globally recognized sovereign wealth fund. Established in 1976, the Fund preserves Alaska's nonrenewable mineral and oil wealth as a renewable financial resource for current and future generations of Alaskans. The Fund also serves as the primary source of revenue for Alaska's unrestricted general funds, supporting the state's economic stability and prosperity. APFC is a quasi-independent state agency with one mission: to manage and invest the assets of the Alaska Permanent Fund and other funds designated by law. The Alaska Permanent Fund is the largest sovereign wealth fund in the U.S., with $81.4 billion in assets as of April 30, 2025. For more information, visit
Yahoo
06-03-2025
- Business
- Yahoo
New-look public education funding bill advances toward Alaska House vote
House Majority Leader Chuck Kopp, R-Anchorage (left) talks with Speaker of the House Bryce Edgmon, I-Dillingham (right) during a break in the Wednesday, March 5, 2025, meeting of the House Rules Committee. Seated at center is Rep. Louise Stutes, R-Kodiak, chair of the committee. (Photo by James Brooks/Alaska Beacon) Alaska's public schools could receive a major permanent funding increase under a bill that will receive a final vote in the Alaska House of Representatives as soon as next week. House Bill 69, from Rep. Rebecca Himschoot, I-Sitka, passed the House Rules Committee on a 5-2 vote early Wednesday. Speaker of the House Bryce Edgmon, I-Dillingham, said debate on the bill will begin Monday in order to give lawmakers enough time to write potential amendments. HB 69 has been the biggest topic of this year's legislative session so far. If signed into law, the current version of the bill would increase K-12 public school funding by about $250 million annually. Last year, lawmakers and Gov. Mike Dunleavy approved a $175 million one-time bonus payment for public schools, making the year-over-year increase only about $75 million. Nevertheless, school districts across the state have said that the increase will help them prevent major cuts to programs and reduce class sizes. The increase approved by the House Rules Committee is less than Himschoot's original proposal, which would have amounted to a $325 million increase in the first year, with more increases in the second and third years. Speaking to the committee on Wednesday, Himschoot said she reduced the rise 'in good-faith compromise' with lawmakers who worried about the original cost of the proposal. As originally proposed, Himschoot's bill would have left schools at the same inflation-adjusted funding level that they received in 2011. Now, schools will be below that level. HB 69 was originally limited to funding levels, but after closed-door negotiations with Dunleavy administration officials, the bill now includes some policy changes sought by the governor. Among the key provisions: Parents will be able to enroll their children in any school within a particular school district. Districts won't be able to limit enrollment to students who live near a particular school. School districts must adopt rules that limit students' ability to use cellphones in school. There will be additional hurdles if a school district seeks to eliminate a charter school. The Legislature will create a task force to investigate further education changes, and the state will commission a report that investigates ways to reduce regulations on school districts. Dunleavy has proposed an alternative bill, one that includes more favorable treatment for charter schools and home-schooled students. However, that idea from the Republican governor doesn't have support among the members of the predominantly Democratic coalition that controls the House. On Wednesday, an attempt to amend HB 69 to include the governor's proposal failed by a 3-4 vote of the rules committee, with members of the House's Republican minority caucus on the losing end. One amendment from House Minority Leader Mia Costello, R-Anchorage, was adopted by the committee after gaining support from House Majority Leader Chuck Kopp, R-Anchorage. That amendment calls for expanding a Dunleavy-backed reading-education bill to cover students from kindergarten through sixth grade. It currently stops at third grade. Costello's amendment calls for the state to fund the program with $450 per student, but that funding is subject to legislative appropriation. Alexei Painter, director of the Legislative Finance Division and the Legislature's chief budget analyst, said fully funding that provision will cost about $22 million per year. Edgmon, a member of the rules committee, noted that Dunleavy himself has already vetoed funding earmarked to pay for his own reading law, and given that history, the program has questionable benefits. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
28-01-2025
- Politics
- Yahoo
Alaska lawmakers introduce bill for major boost in school funding
High school students chant "Raise the BSA" outside the Capitol during a protest for increased public school funding on April 4, 2024. After Gov. Dunleavy vetoed a base student allocation increase last year, this year lawmakers have introduced legislation to boost school funding based on inflation rates. (Photo by Claire Stremple/Alaska Beacon) Education funding is back on the docket for the Alaska Legislature. On Friday, Independent Rep. Rebecca Himschoot of Sitka introduced legislation, House Bill 69, to substantially increase the amount of funding per student. The two-page bill would increase the base student allocation, the core of the state's school funding formula. The base student allocation is currently $5,960 for this school year. If passed, the new legislation would boost the BSA by $1,000 next school year, as well as two increases of $404 each in the following two years. In addition, the bill would adjust for inflation each year, based on the average consumer price index over the previous three years. For next school year, the BSA would total $7,249, a 22% increase. By the 2027-2028 school year, it would reach an estimated $8,510, for a total increase of roughly 43% over three years. Lawmakers say the boost will help address a major historical shortfall in funding. School costs rose by nearly 40% since 2011, while the BSA increased by only 10%, according to a statement Himschoot filed along with the bill. 'There's a huge gap there,' Himschoot said in a news conference Friday. 'All of us have noticed, and have heard from parents, from families, from school districts, that that gap is there. And it's causing huge, huge problems and taking opportunity away from our students. So this bill looks to correct that.' House lawmakers also hope to address the state's teacher shortage. Vacancies have more than doubled since 2021, from 260 to 598 full-time certified teaching positions vacant this year, according to data provided by the Department of Education and Early Childhood Development. This year's state budget increased school funding by an amount equal to a $680 BSA increase, but did not make a permanent change to the formula. 'One-time funding is not effective,' said Democratic Rep. Andi Story of Juneau, who is co-chair of the House Education Committee with Himschoot. 'Many families … have seen too big of a churn by teaching staff, and a lot of that has to do with only one-time funding coming. So we know we need to make it permanent and this bill addresses that.' Last year, Gov. Mike Dunleavy vetoed a bill to increase per-pupil spending, citing what he said was the need to address education policy issues, including teacher retention and provisions to support charter schools. 'Without a comprehensive plan to address the education issues of the state, simply increasing funding to the current system does nothing to increase the educational outcomes and potential of our youth,' Dunleavy said in a veto memo. Legislators sought to override the veto, but the effort failed by one vote, resulting in the state enacting the one-time funding increase. This year, lawmakers acknowledged there are major issues to address with rising district costs, particularly for transportation, heating and insurance costs, as well as declining school enrollment. Proponents of the bill aim to boost the base student allocation tied to inflation, on a continuous basis so school districts can address those deficits and plan for the future. 'It shifts the risk,' Rep. Himschoot said. 'The risks of inflation fall on districts right now, and it shifts that risk to the state.' On Monday, the House education committee heard impassioned testimony from school officials, parents, and business, municipal and tribal leaders from around the state, in support of the funding boost. 'We have no health, no social-emotional learning, and no physical education curriculum. We have no in-person music, art or foreign language programs,' said Madeline Aguillard, superintendent of the Kuspuk School District in the middle Kuskokwim River region, detailing extensive budget cuts already made. 'We have extremely reduced academic programs. We have no in-person career and technical education courses. We have no advanced courses for students pushing to pursue higher education or technical fields. We haven't been able to adopt a social studies curriculum in the last decade,' she said. 'Some of these things can be provided online, and we do rely on a lot of online vendors,' she added. 'However, we lack the adequate technology to be able to even provide devices for all of our students.' The legislation comes at a time when school districts across the state are facing major deficits and considering school consolidation and closures, including in Fairbanks, Kodiak, Ketchikan, the Matanuska-Susitna Borough and Anchorage. Steve Rowe, an Anchorage parent of three and owner of a general contracting company, testified to the committee that the cost of school funding is essential. 'I promise you, I scream 'budget' every day to about 50 different people, and to stay within it,' Rowe said. 'But I also can stand back and recognize at certain points, it doesn't matter what the budget is in certain sectors, we have to fund those no matter what the cost is, and if that means making it painful somewhere else, then so be it. That's just what we have to do. I believe education has to be one of those.' Jenna Wright, president of the Anchorage Economic Development Corp., highlighted the economic costs of Alaska's current school issues. 'I have heard from more than one employer over the last year that has said they've lost a candidate because of perceptions about a lack of education system,' Wright said. 'So by underfunding education, we're losing families, workers and taxpayers to other states with better-funded schools. This is eroding our economic base and undermining our efforts to grow a robust economy.' Alaska has a complicated formula for funding public schools for its approximately 131,000 students. The base student allocation is just one part of the formula, which takes into account several factors, including the number of students enrolled, number of correspondence students, school sizes, location in urban or rural areas called district cost factor, career technical education and special needs students. The state contributes about 62% of funding to school districts, along with municipal, federal and some grant funding. But how far that funding goes also depends on the district. Alaska has 53 school districts across the state, and 34 of those are located in municipalities with tax revenue to contribute to schools. There are 19 districts that are Regional Education Attendance Areas with no municipal government and no taxing power. 'So their only source of funding is the state or federal government,' said Alexei Painter, director of the Alaska Legislative Finance Division, which analyzes the budget for lawmakers. Painter provided an overview of the school funding formula in a presentation to the House Education Committee on Jan. 24. Lawmakers in both the House and Senate have said that school funding is one of their main priorities this year. Dunleavy has also said he plans to introduce legislation to increase school funding. His proposed budget in December reduced education funding by $213 million, since it did not continue with the one-time funding. He said roughly $200 million in school funding could be added, if lawmakers can agree to certain changes in education policy. Sen. Löki Tobin of Anchorage, chair of the Senate Education Committee, said she is planning to introduce school funding legislation in the Senate. This week, the House Education Committee is holding public testimony on the proposed BSA increase legislation on Wednesday, Jan. 29, from 5 p.m. to 7 p.m. Members of the public can call in: From any location, at (844) 586 – 9085 From Juneau, at (907) 586 – 9085 From Anchorage, at (907) 563 -9085 SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
