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SB 257

An Act relating to funding for residential schools; and providing for an effective date.

34th Legislature (2025-2026) Introduced by Mike Cronk

SB 257 funds residential-school placements with regional, capped monthly room-and-board stipends and eligible transportation costs, retroactive to July 1, 2025.

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Bill Summary · SB 257

Summary — Senate Bill 257 (SB 257), 34th Legislature, 2nd Session (Alaska)

Title

An Act relating to funding for residential schools; and providing for an effective date.

Purpose and intent

SB 257 modifies the reimbursement funding structure for districts that send students to residential (out-of-district) schools. The bill establishes fixed per-pupil room-and-board stipends (on a regional basis) and clarifies transportation costs that districts may claim for reimbursement. It is retroactive to July 1, 2025, and takes effect immediately.

Key provisions

Section 1 — Reimbursement eligibility and per-pupil stipends

  • The bill amends AS 14.16.200(b) to define costs that districts may claim for reimbursement in relation to students attending residential schools.

  • Reimbursable costs include:

    1. One round trip per student per school year, using the least expensive mode of transportation, if the district incurs travel expenses.
    2. A per-pupil monthly stipend to cover room and board expenses. This stipend is determined by the department on a regional basis and capped at specific regional amounts, tied to the base student allocation (BSA) under AS 14.17.470. The caps by region are:
      • Southeast Region (Region I): 37% of the BSA, up to $1,230 per month
      • Southcentral Region (Region II): 36% of the BSA, up to $1,200 per month
      • Interior Region (Region III): 44% of the BSA, up to $1,452 per month
      • Southwest Region (Region IV): 45% of the BSA, up to $1,509 per month
      • Northern Remote Region (Region V): 53% of the BSA, up to $1,776 per month

  • In short: Districts may be reimbursed for transportation and for a regional, capped monthly room-and-board stipend for students attending residential schools. The stipend amounts are proportional to the district’s base student allocation and vary by region.

Section 2 — Retroactivity

  • The act explicitly states retroactivity to July 1, 2025. This means eligible districts could receive reimbursements or adjustments for costs incurred starting from that date.

Sec. 3 — Effective date

  • The act takes effect immediately, per AS 01.10.070(c).

Affected entities

  • Alaska school districts that fund or place students in residential (out-of-district) schools.
  • The Alaska Department of Education and Early Development (requirements for determining and administering regional per-pupil stipends).
  • Students attending residential schools and their families may indirectly be affected via changes to funding levels and access to services, depending on district decisions regarding placement.

Procedural/timeline aspects

  • Introduced: February 23, 2026
  • Referred to: Education and Finance committees
  • Public testimony and hearings noted in the action history (Education committee on May 4, 2026)
  • Retroactive provision applies to costs beginning July 1, 2025
  • Immediate effectiveness upon enactment (subject to passage)

Practical impact and considerations

  • The bill provides a formula-based, regionally differentiated approach to funding room and board for residential-school students, replacing or altering prior reimbursement structures.
  • Regions with higher percentages of BSA funding (e.g., Northern Remote Region) yield higher stipend percentages, reflecting cost of living and regional needs.
  • By establishing caps tied to the BSA, the bill aims to standardize and potentially constrain reimbursements to align with state funding and budgeting practices.
  • Retroactivity could require districts to adjust financial records and reimbursements for costs incurred since July 2025.

Notes for readers

  • The exact base student allocations (BSAs) by region are stated as multipliers of AS 14.17.470; districts should refer to current BSA figures to determine the precise monthly stipend amounts.
  • The policy emphasizes cost-efficient transportation and regional equity in room-and-board funding for residential schooling.

Compiled from official sources — confirm details with the bill’s official record.

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