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After school funding dispute, 4 Alaska districts move on without federally promised money

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After school funding dispute, 4 Alaska districts move on without federally promised money


Until last month, the U.S. Department of Education said Alaska underfunded four of its largest school districts by $17.5 million. As a result of a recent agreement, the schools in Anchorage, Fairbanks, Juneau and Kenai Peninsula Borough won’t directly receive any of that money.

However, two of the districts said they weren’t counting on receiving the money as they planned their current budgets, while the other districts either didn’t respond or declined to comment.

The $17.5 million is part of COVID-era pandemic funding, and until last month, how Alaska distributed that funding was at the heart of a years-long dispute between federal and state officials, and whether it was spent fairly.

The state repeatedly defended their school spending plan, while the federal government asserted the state failed to comply with guidelines and reduced spending on these districts with high-need or high-poverty areas, and withheld the sum they said was owed.

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Federal officials said the state reduced spending to the Kenai Peninsula and Anchorage school districts by up to $11.89 million in the 2021 to 2022 school year, and all four districts by $5.56 million the following year.

Kenai Superintendent Clayton Holland said the district never budgeted for this particular federal COVID funding, as they were aware of the dispute.

“Had it gone through, we would have welcomed it, as we are facing a potential deficit of $17 million for next year” and have nearly exhausted the balance of funding the district can spend without restrictions, Holland said.

Anchorage School District officials did not respond to requests for comment.

The dispute came to an end on Dec. 20,  when the federal department told the state it was releasing the funding, citing a review of the state’s one-time funding boosts in the last two budgets, and considered the matter closed.

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Alaska Education Commissioner Deena Bishop led the state’s defense effort, including appealing the penalty, and applauded the move by the federal Department of Education. She said the state always followed the state law governing school funding.

“The department said, ‘We don’t agree with your formula, you should have given these guys more.’ And we said, ‘No, no, no. Only our Legislature can make the law about our formula. That’s why we stood behind it,” she said in an interview Tuesday.

The dispute centered around what was known as a “maintenance of equity” provision of a federal COVID aid law, which banned states from dropping per-pupil spending during the pandemic. Bishop said that decreases in funding in the four districts were due to drops in enrollment, according to the state’s spending formula.

Bishop defended the formula as equitable, noting that it factors in geographic area, local tax bases, and other issues. “I just felt strongly that there’s no way that they can say that we’re inequitable, because there are third-party assessments and research that has been done that Alaska actually has one of the most equitable formulas,” she said.

“Our funding formula is a state entity. Our districts are funded according to that,” Bishop said. “And so basically, they [U.S. Department of Education] argued that the distribution of funds from the state funding formula, the state’s own money, right, nothing to do with the Feds, was inequitable.

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“So they picked these districts to say, ‘You need to give them more.’ And we’re saying, ‘No, you don’t have a right to say that. We spent your money, how you said, but only the state Legislature can say’” how to spend state money, she said.

She said the state felt confident about their spending plan for American Rescue Plan Act funding.

In addition to temporarily withholding the funding, the federal government further penalized Alaska by designating it a “high risk” grantee.

Federal and state officials went back and forth on compliance, with the state doubling down, defending their school spending. By May, the state had racked up another $1 million in frozen federal funds.

Bishop said despite the holds from the feds, they continued to award the funds to districts.

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“We felt as though we would prevail. So we never wanted to harm school districts who were appropriated those funds the way that they were supposed to,” she said. School districts followed the dispute closely.

Juneau School District’ Superintendent Frank Hauser said the district did not expect or budget for the funds.

“JSD was slated only to receive approximately $90,000 of the “maintenance of equity” funds, much less than Kenai, Fairbanks, or Anchorage,” he said in an email. “JSD will not receive that money now; however, we had not anticipated receiving it and had not included it in our budget projection.”

The Fairbanks North Star Borough School District declined to comment on the issue. A spokesperson said the district administration is awaiting clarification from the state education department.

On Monday, the administration announced a recommended consolidation plan for five elementary schools to be closed, citing a $16 million deficit for next year. A final vote on whether to close the schools is set for early February.

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Now the state is in the process of applying for reimbursements from the federal Department of Education, and expects to receive that full $17.5 million award, Bishop said. If districts have outstanding pandemic-related expenses, she said those can be submitted to the state, and will be reimbursed according to the state’s COVID-19 funding guidelines. “We’ll process that, and then we’ll go to the Feds and get that money back,” she said.

In December, Gov. Mike Dunleavy applauded the federal announcement, calling the dispute “a tremendous waste of time,” in a prepared statement. He repeated his support for President-elect Donald Trump’s calls to eliminate the U.S. Department of Education.

“On the bright side, this saga is a wonderful case study of the U.S. Department of Education’s abuse of power and serves as further evidence for why I support the concept of eliminating it,” he said.

Dunleavy linked to a social media post he made on X, which read, in part, that eliminating the department “would restore local control of education back to the states, reduce bureaucratic inefficiency and reduce cost. Long overdue.”

Sen. Löki Tobin, D-Anchorage and chair of the Senate Education Committee, pointed to the timing for the outgoing Biden administration and federal leaders’ desire to release funding to Alaska schools.

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“It’s very clear that if the presidential election had ended in a different result, we would not be having this conversation,” she said. “Instead, they would be continuing to work with the department to find a more elegant, a more clean solution.”

She said the federal letter announcing the end to the long dispute doesn’t mean the issue of equity was resolved.

“I think their letter to the Department of Education and Early Development here in Alaska was very clear that Alaska never did fully comply with the guidelines, but instead, due to a want and a fervent hope that the resources would get into the schools and into the communities that so desperately needed them, that they would choose to not pursue further compliance measures,” she said.

Last year, the Legislature passed a budget with $11.89 million included for the state to comply with the federal requirements, but that funding was vetoed by Dunleavy, who defended the state’s position, saying the “need for funds is indeterminate.”

The budget did include a one-time funding boost to all districts, but Tobin said the annual school aid debate left districts in limbo for future budget planning.

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“We can see how this has cost school districts, how it has created instability, how it has resulted in a system that is unpredictable for funding streams for our schools,” Tobin said.

Kenai Superintendent Holland expressed hope that school funding would be prioritized by elected officials this year.

“The bigger issue for us, and for all Alaskan school districts, is what our legislators and governor will decide regarding education funding in the upcoming legislative session,” Holland said.



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Alaska Senate committee unveils crime bill package in final weeks of the legislative session

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Alaska Senate committee unveils crime bill package in final weeks of the legislative session


JUNEAU, Alaska (ALASKA BEACON) – With only four weeks left of the legislative session, the Senate Judiciary Committee has merged several bills into a wide-ranging omnibus crime bill. Even with the tight timeline, some lawmakers are optimistic about its chances for passage before the end of the session, Corinne Smith with the Alaska Beacon reports.

The new draft omnibus crime package combines ten bills ranging from raising the age of consent to increasing criminal penalties for AI-generated child sexual abuse material into one large bill supporters hope will have the momentum to pass both the House and the Senate in the next 28 days.

The Senate Judiciary Committee chair Sen. Matt Claman, D-Anchorage, introduced the 55-page omnibus bill on Friday, saying the bills have a stronger prospect as a package.

“I think that increases the likelihood we’ll be able to pass it,” he said in an interview on Monday.

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With one month to go in the second year of the two-year legislative cycle, this is the last opportunity for bills to be passed by the 34th Legislature.

The draft omnibus crime bill was added to House Bill 239, sponsored by House Majority Leader Rep. Chuck Kopp, R-Anchorage, who spoke in support at the hearing on Friday.

“This bill has grown, it’s gone from the sports car to the school bus” he said. “Policies I all support as a bill sponsor.”

Gov. Mike Dunleavy sponsored two bills included in the omnibus package, but did not respond to a request for comment on Tuesday.

The bills included are in various stages. Some have passed the House, while others are being considered by various committees in the House and Senate. Several lawmakers who sponsored bills now included in the omnibus package agreed that politically it could increase chances of passage by May 20.

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Rep. Sarah Vance, R-Homer, sponsored a bill that would create state felony penalties for AI-generated child sexual abuse material. It unanimously passed the House last month.

“I’m excited that it’s included in the omnibus bill, because that shows intent by the Senate to pass the bill,” Vance said on Monday. “So I have great confidence that it will cross the finish line.”

But Claman, who is running for governor, has drawn public criticism for the process of how the omnibus crime bill was put together this session.

Advocates for raising the age of consent — along with the Anchorage Daily News editorial board — criticized Claman for holding a bill to raise the age of consent to 18 in the Senate Judiciary Committee, which passed unanimously by the House last year, in order to be included in the omnibus bill. Critics urged Claman and the committee to pass the bill and allow it to move forward as a stand alone bill toward a full Senate vote and final passage.

Claman has argued that despite limited time left in the session, the bills included have been vetted and the combination package will garner more support among legislators and the governor to pass in the last few weeks of the session.

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“I’ve been in the Legislature now since 2015, and so in the last 11 years, we’ve passed 11 different bills relating to public safety,” he said. “So I think there are ten different measures that we put into the bill, and if we tried to do them all individually, probably wouldn’t get them all passed.”

Claman pointed to an omnibus crime bill, House Bill 66, enacted in 2024, with support from Gov. Mike Dunleavy and across political affiliations. “That’s certainly, I think, the best example,” he said. “So I do have confidence we’ll get it passed.”

Rep. Andrew Gray, D-Anchorage, sponsored House Bill 101, the bill that would raise the age of consent from 16 to 18 years old. Backed by advocates for sexual violence prevention, he said the change in law is essential for protecting teens from sexual exploitation and abuse. Under current law, it’s legal for an adult to have sex with a 16 or 17 year old. But when they are assaulted, teens must prove that they did not consent.

Despite previous disagreement and pushing for a stand alone bill, Gray said Monday he will back the omnibus crime bill in order to see the law changed.

“If that happens, inside an omnibus crime package that has other bills that are also worthy of passage, I’m fine with that,” he said. “I just want the policy to change.”

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The draft omnibus crime bill now contains ten bills that previously stood alone:

  • House Bill 239 — would increase criminal penalties for hit and run incidents so that drivers that cause a death and knowingly failing to stop and render assistance, and establishes mandatory sentencing of four to seven years for a first hit and run felony conviction
  • House Bill 101 — would raise the age of consent from 16 to 18 years old, with provisions to allow consent to sex with someone up to six years older than them. The draft bill also allows 16 and 17 year olds to consensually exchange sexual or explicit messages within the six year close-in-age gap without penalties.
  • Senate Bill 247 — would create state criminal penalties for creating AI-generated images or video that depicts sexually explicit or obscene content involving anyone under 18 years old
  • House Bill 62 — Sponsored by Gov. Mike Dunleavy, the bill would establish a statewide tracking system for sexual assault examination kits, expedite processing times, and ensure that survivors can privately monitor the status of their own kit. 
  • Senate Bill 100 — Also sponsored by the governor, and would establish the crime of organized theft, including mail theft and medical record theft
  • House Bill 242 — would redefine criminal law to prohibit any sexual contact or assault by a health care worker during professional treatment, changing the current law which only applies to patients being unaware of sexual contact or assault for criminal charges to apply. 
  • Senate Bill 17 — would establish the crime of airbag fraud for knowingly selling, installing or manufacturing a counterfeit airbag in a vehicle 
  • House Bill 81 — would establish minor marijuana related convictions to remain confidential on individuals personal records, under certain criteria
  • House Bill 384 —  would expand confidentiality agreements between victims and service providers by updating the definition of “victim counseling center” to include tribal organizations
  • Senate Bill 233 — would reassign the Controlled Substances Advisory Committee from being administered by the Department of Law to the Department of Commerce, Community and Economic Development. 

The new version of Vance’s bill focused on AI-generated child sexual abuse material included in the bill is closer to her initial proposal. Social media controls for minors added by the House were stripped out of the Senate version. Vance said she supports the amended version given First Amendment protections around social media.

“I think that was a wise decision right now, because Alaskans are very mixed on how they feel that we should address social media,” Vance said.

Rep. Sara Hannan, D-Juneau, is the sponsor of House Bill 242, and said she supports her bill being included in the Senate omnibus, but she is still pushing to advance her standalone bill in the House.

“I need people who didn’t serve on the two committees that heard it in the House to understand it,” she said, as the Senate draft will come back to the House for a concurrence vote. “It still helps to educate on the issue.”

Hannan’s legislation follows a high profile case in Juneau last year where the court dropped several charges against a chiropractor because under current law part of the legal definition of sexual assault by a medical provider requires the alleged victim to be unaware the assault is happening.

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“Right now, the victim needs to be unaware, and the perpetrator needs to know that they are unaware,” Hannan said Tuesday. “So to change that in statute, I think is an important policy statement for us to make.”

Hannan said significant policy bills typically take several years to get through the Legislature, with public input, debate and support gathering. But she expressed confidence in the support for the omnibus crime bill in the weeks ahead.

“We’re running the clock down,” she added. “The only downside, from my perspective, is the advocates and the victims that were directly involved in the case that inspired this bill. You know, they get more acknowledgement when it’s the standalone bill… But in the end, if the goal is to change the policy, there’s no downside to it.”

The Senate Judiciary Committee will continue to hold hearings on the crime bill this week and its members have until Friday to introduce amendments before it advances to the Senate floor for a vote. Claman said he expects that to be in the last week of April.

This story has been republished with permission from the Alaska Beacon.

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Hawaiian, Alaska reservation systems merge: Big changes for travelers start April 22

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Hawaiian, Alaska reservation systems merge: Big changes for travelers start April 22


HONOLULU (KHON2) — It’s the biggest milestone yet in the Hawaiian Airlines merger with Alaska Airlines.

Starting Wednesday, April 22, Hawaiian Airlines and Alaska will operate as one, powered by a single passenger reservation system, essentially the technology behind your entire travel experience.

“The system that connects all of the programs that our guests use, things like our websites, our app, our Atmos rewards program, our Huaka’i program, all of those systems, including employee tools, will be updated as of tomorrow to a more modern single passenger service system that will allow a more stream streamlined and seamless guest experience for all those that are traveling on either Alaska or Hawaiian that will allow a more stream streamlined and seamless guest experience for all those that are traveling on either Alaska or Hawaiian,” said Alisa Onishi, Hawaiian Airlines Marketing Manager.

By midnight tonight, the Hawaiian app goes dark, replaced by a new combined Alaska-Hawaiian platform, marking a major shift in how you book and manage your flights.

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“If you download our new single Alaska-Hawaiian app, you’ll be able to manage your bookings all in one place, make changes, cancellations and a lot more self-service features that our guests have been asking us for for quite some time now that you couldn’t do on the old app,” said Onishi.

Behind the scenes, this moment has been three years in the making. Alaska announced its $1.9 billion acquisition back in 2023, with approvals and integration steps unfolding through 2024 and 2025.

At the airport, much will look the same, but the process is getting an upgrade. Travelers are encouraged to check in ahead of time, using the new app, then use updated bag tag stations to print tags and drop bags faster.

“You scan your boarding pass, prints out the bag tags. You can pay or prepay online or pay at the stations and then drop your bag, so you’ll get through the airport a lot quicker,” said Onishi.

Airline officials said the goal is a more seamless, self-service experience, something customers have been asking for.

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Still, not everyone is convinced.

“Even today, when I was trying to get my boarding passes, there was a Hawaiian-Alaskan app that I went to, and then it referred me back to the Hawaiian app. So I didn’t know what application I was supposed to be using, but ultimately, it worked out to a point,” said Ethan Christensen, who was standing in line at customer service to confirm his flight for tomorrow. “But yeah, we’ll see. Hopefully, it gets better. I mean, I know these things take time, especially when you’re kind of merging two big things like this, but the outlook is positive for me because I know it’s a good airline. Hopefully it stays that way.”

The call centers are not going away, and customer service desks will remain at the airports for those who need one-on-one help.

Airline leaders acknowledge the transition so far hasn’t been perfect, but said this milestone is meant to fix many of those issues.

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Alaska’s embattled economic development agency approves $700,000 PR budget

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Alaska’s embattled economic development agency approves 0,000 PR budget


The Anchorage headquarters of the Alaska Industrial Development and Export Authority, or AIDEA. (Nathaniel Herz/Northern Journal)

The state agency leading some of Alaska’s most polarizing development projects has approved a new communications budget, saying it needs to do a better job telling its own story amid attacks from critics.

The state-owned Alaska Industrial Development and Export Authority is run by a former chief of staff to Gov. Mike Dunleavy and is charged with promoting economic growth and expanding natural resource extraction and exports.

It is leading work to develop state-owned oil leases in the Arctic National Wildlife Refuge and also hopes to build two controversial new roads to access mining prospects in Northwest Alaska and outside of Anchorage.

Those projects have drawn sharp opposition from conservation organizations and other critics, including lawsuits, critical op-eds and campaigns that have labeled the agency “Bad AIDEA” and caricatured its leaders.

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At a meeting in Ketchikan this month, board members, with no public discussion, authorized AIDEA’s staff to spend up to $700,000 a year on a new communications budget — formalizing a plan that the agency says was previously budgeted inconsistently through spending on individual projects.

The new communications plan, the agency said in its formal resolution authorizing the spending, will “ensure proper public engagement, transparency, and stewardship of the authority’s mission.” The money could go toward trade shows and conferences, responding to media inquiries and “other communications-related needs,” according to the resolution.

The agency’s executive director, Randy Ruaro, referred questions about the plan to Dave Stieren, an AIDEA employee who ran an advertising agency and hosted a conservative talk radio show before joining the Dunleavy administration.

AIDEA Executive Director Randy Ruaro listens to comments during a news conference held by Gov. Mike Dunleavy to discuss the future of energy in Alaska in Anchorage on Jan. 6, 2025. (Marc Lester / ADN)

Stieren said he could not provide exact figures on AIDEA’s past communications spending, but he acknowledged that the new plan should allow the agency to meaningfully boost its public profile.

The $700,000 a year, he added, is a limit, and the agency will set a final budget through a request for proposals process.

“Mothership AIDEA has done, frankly, little to nothing on a consistent basis to tell our story,” Stieren said in an email — particularly when it comes to its loan programs that have helped finance tourism and hospitality businesses, like the Alaska Club fitness chain and Anchorage’s Bear Tooth pizza restaurant and theater.

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“We’re far more than roads,” Stieren said. “But since we’ve really not promoted or showcased our efforts in traditional finance areas, I understand the narrative or lack thereof that folks may have.”

Stieren has also personally defended AIDEA on social media, including over the weekend — when he posted a conservative news website’s positive story about an agency-owned shipyard and said that “when commie libs attack AIDEA, they attack projects like this.”

A social media post by AIDEA employee Dave Stieren. (Screenshot)

AIDEA’s board chair, Bill Kendig, declined to answer questions about approval of the new communications budget when reached by phone.

At the Ketchikan meeting, one AIDEA critic, Melis Coady, credited the agency with formalizing communications spending as a “step toward accountability.” But she said that the plan doesn’t “deliver the transparency it describes” because it gives Ruaro, the executive director, authority to approve communications spending, and only requires that he report it to the board if asked.

“The authorization is broad, the dollar amount is undefined, and expenditures are approved solely by the executive director,” said Coady, who leads a conservation group called the Susitna River Coalition.

Ruaro, in an email, said AIDEA will issue reports on communications to board members “whether requested or not.”

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Nathaniel Herz is an Anchorage-based reporter. Subscribe to his newsletter, Northern Journal, at northernjournal.com.





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