Alaska's Education Funding At Risk: $425 Million Federal Grant Money, Equity Provisions Under Scrutiny

Alaska education funding equity provisions scrutiny

By E.Baloyo , Parent Herald Apr 09, 08:00 am

Photo: (Photo : David McNew / Getty Images)

Alaska has approached the U.S. Department of Education seeking a waiver for a federal mandate tied to COVID relief funds. This move comes in response to allegations that Alaska failed to allocate $29 million to four urban school districts.

The core of the conflict lies in a hold-harmless provision aimed at shielding districts serving low-income and high-poverty students from substantial funding cuts.

Alaska's Education Funding: $425 Million Federal Grant Money

Recently, Alaska's Education Committee convened hearings following a letter from the U.S. Department of Education dated March 27, pointing out non-compliance with funding conditions.

Federal authorities argue that while Alaska accepted federal grants in 2021 and 2022, some school districts received reduced state funding, leading to a clash with the national maintenance of equity (MOEquity) provision.

The potential consequences loom large. If the waiver request to the Department of Education and Early Development (DEED) is rejected and Governor Mike Dunleavy doesn't urge the legislature to consider funding payments to align with the American Rescue Plan Act's guidelines by April 26, Alaska faces the risk of losing up to $425 million in federal grants, remaining classified as a "high-risk" funding recipient.

During a hearing, Austin Reid, Federal Affairs Advisor for the National Conference of State Legislatures, highlighted challenges stemming from federal guidance, noting that it didn't simplify matters for state legislatures.

However, not all lawmakers were convinced by this explanation. State Senator Jesse Keihl of Juneau, a member of the Education Committee, expressed skepticism about the Alaska Department of Education's oversight, emphasizing the need for closer monitoring.

The distribution of COVID relief funds has been a complex process nationwide, prompting the federal government to issue multiple updates regarding their utilization.

Among these updates is the "Maintenance of Equity" requirement, intended to channel funds toward historically underserved student groups.

Maintenance of Equity Provision

Alexei Painter, Director of Alaska's Legislative Finance Division, emphasized that the federal maintenance of equity provision aimed to prevent states from reducing state funding just because federal funds were available.

During a House Finance Committee meeting in May 2023, Painter discussed schools and inflation, noting that while it might seem like the state substantially increased its budget, inflation and population growth outpaced the budget's growth.

In a recent emergency Education Committee meeting in Juneau, Democratic state Sen. Loki Tobin, the state's Education Chair, responded to a presentation indicating increased funding for Alaska's schools.

Sen. Tobin clarified that the increase was minimal, referencing a $30 Base Student Allocation (BSA) increase, not a significant rise. She also mentioned that some states provided schools with more funds than required by the federal government to avoid compliance issues.

State Sen. Jesse Keihl, a member of the Education Committee, criticized the lack of solutions in the governor's budget amendments, submitted before and after the legislative session's deadline. This was in response to the Department of Education's assertion that Alaska hadn't presented a timely solution to compliance issues.

In a letter to the Department of Education on March 22, Bishop stated that Alaska didn't intend to use federal funds to reduce state education spending. She hinted at potential constitutional litigation and accused federal policies of harming rural schools.

Despite these discussions and efforts, Alaska remains the sole state that hasn't met federal requirements for the equitable distribution of relief funds, as per the Department of Education's assessment.

Alaska's endeavor to navigate these federal mandates underscores the broader challenges faced by states in balancing compliance with federal guidelines and meeting local educational needs.

The outcome of Alaska's efforts will not only impact its funding landscape but also serve as a precedent for addressing equity issues in education funding across the country.