Sen. Löki Tobin, D-Anchorage, talks with colleagues on the Senate floor on Jan. 22, 2025. (Marc Lester / ADN)
JUNEAU — The Alaska Senate Education Committee on Monday replaced a school funding bill introduced in March with a new version that strips out a controversial overhaul of publicly funded homeschooling programs.
The new version instead would require more legislative oversight over Alaska’s correspondenceeducation programs, and removes additional correspondence funding in favor of broader one-time education funding measures.
The bill now includes a $58 million one-time school energy relief payment to offset high fuel prices, and a bump to student transportation funding. It still includes incentive grants for districts where students improve reading proficiency under the Alaska Reads Act.
Sen. Löki Tobin, an Anchorage Democrat and chair of the Senate Education Committee that sponsored the bill, said that removing the most controversial parts of the bill — how correspondence programs are funded — makes the bill more straightforward.
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“I think the part that was most infuriating was the mis- and disinformation that was promulgated by certain entities that the outreach we received would talk to components or pieces that weren’t in the legislation at all, or the legislation didn’t do what they were claiming it did,” she said in an interview Tuesday.
She said the “deep trove of mal-information” created a response and pushback she “was unwilling to continue to bear.”
The bill originally sought to funnel funding for homeschoolers through the school districts in which they reside, potentially with significant impacts tolarge correspondence programs that are administered by rural school districts. That funding change came alongside a 10% increase in per-student funding for correspondence students overall. Both of those elements are removed from the new version of the bill.
There are over 30 correspondence programs enrolling more than 24,000 students across Alaska, as of last year. More than half of those students were enrolled in correspondence programs administered by districts outside of the district where they reside.
That includes programs like IDEA, run by the Galena City School District, the state’s largest correspondence program. IDEA serves over 7,000 students statewide.
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Superintendents and families of correspondence students pushed back against the original bill, saying that it represented an existential threat to correspondence programs. The bill received hundreds of letters and public testimony opposing the changes to correspondence funding.
The new version of the bill removes some of the bill’s most controversial aspects.
Jason Johnson, the superintendent of the Galena City School District, sent an email to IDEA families prior to the bill’s first hearing urging them to contact their representatives to oppose the bill and asserting that under the bill as written, correspondence programs would receive zero state funding.
Tobin said in an interview in March following the influx of opposition that the bill would not have diverted all state funding away from correspondence programs.
Johnson said as of Tuesday morning, he had not yet reviewed the new version of the bill.
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Homeschool reporting requirements
The new version of the bill requires thatAlaska school districts provide an annual report to the Legislature with details on the correspondence programs they operate, including how much money the district provides to students in the programs, how many students are in the programs, where those students live, what the allotments are used for, and more.
The new reporting requirements mirror those included in a 2024 bill that called for a one-time report to the Legislature on correspondence allotment spending.
At the time, state spending on homeschooled students was scrutinized following litigation challenging a practice by some Alaska families — including that of former Attorney General Treg Taylor — to subsidize tuition in private Christian schools using public correspondence school allotments.
Tobin said last year that the 2024 report revealed there is “just a lot we don’t know about how public dollars are being used.”
A much larger percentage of students in non-correspondence schools take AK STAR state standardized tests compared to those in correspondence programs. Correspondence programs often see lower graduation rates than standard public schools in Alaska.
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Families whose students are enrolled in IDEA, for example, receive an allotment of $2,700 per student per year, according to IDEA’s website. There is little clarity or government oversight on how that money can be spent. A pending lawsuit will answer whether or not correspondence allotments can cover the cost of tuition at a private school.
Tobin says these discrepancies and outstanding questions call for more state oversight on correspondence programs.
“We’re asking for all that information because it’s difficult, as we’ve learned, to create good public policy that helps support our correspondence students, if we don’t have the information that is needed to inform how that policy is created,” Tobin said.
Education funding prospects
The committee substitute to the Senate bill also cuts the $125 increase to the state’s annual per-student formula funding, intended as inflation-proofing in the bill’s original version, which would have raised the Base Student Allocation from $6,660 to roughly $6,785.
Tobin said removing the increase to annual per-student funding in favor of a one-time payment is more politically feasible in the Legislature this session.
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“Whether it’s inflationary or it’s additional funds for this year, there is a disinterest in increasing the Base Student Allocation this cycle, and so we’re trying to figure out other ways that we can target funding and support students and communities and schools,” Tobin said Tuesday. It is unlikely that the Legislature can muster the votes needed to override a governor’s veto of additional education funding, she said.
Tobin also said she thinks one-time funding is more likely to get the governor’s signature. The Legislature narrowly voted last session to override Gov. Mike Dunleavy’s veto of an increase in the Base Student Allocation.
But Alaska’s publicschools still say they don’t have the money they need, with districts such as the Anchorage School District voting to close schools and reducing staff positions and programs to mitigate severe deficits.
The latest version of the Senate bill is in conflict with a spending plan adopted by the House this week.
The House operating budget calls for adding $147 million in one-time funding for K-12 school operations along with nearly $11 million in new funding for student transportation. The House figure, majority members say, is needed to make up for years of inflation.
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That funding in the operating budget was included to guarantee some additional education funding this year. During debates on the House floor, members of the Republican minority repeatedly spoke out against one-time spending on education, including arguments that they wanted a more specific plan for how the funds would be used and that it could lead districts to expect funding to continue at that level in future years.
The Senate bill proposes to increase student transportation funding by roughly $15 million, distribute just under $59 million in energy relief payments to K-12 schools, and spend around $22 million on incentive payments for reading improvement.
All told, the Senate proposal calls for close to $100 million in new education spending, far below the amount identified by the House.
Daily News reporter Iris Samuels contributed to this report.
Shares in Alaska Air Group(ALK 1.16%) rose by 12.7% in an excellent week for airline stocks. The move comes as the sector climbs a wall of worry driven by soaring jet fuel prices stemming from the closure of the Strait of Hormuz. While the market’s prior concerns are understandable, there’s growing anecdotal evidence suggesting that airlines, including Alaska Air, might emerge from the period in better shape than many expect.
This week’s airline updates
Southwest Airlines(LUV 0.83%) CEO Robert Jordan gave a presentation at the Bernstein 42nd Annual Strategic Decisions Conference, and his remarks surprised the market. It’s no secret that jet fuel prices have soared, and that’s challenging airlines’ profitability. Still, it doesn’t appear to have affected end demand, with Delta Air Lines previously telling investors that strong demand in the first quarter was continuing into the second quarter, even as it raised prices.
Today’s Change
(-1.16%) $-0.54
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Current Price
$46.05
Key Data Points
Market Cap
$5.1B
Day’s Range
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$46.04 – $47.84
52wk Range
$33.03 – $65.88
Volume
162.4K
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Avg Vol
4.5M
Gross Margin
13.76%
That positive trend, with Southwest’s Jordan telling investors that Southwest had participated in seven consecutive fare increases with “no drop off in demand at all.” Jordan went on to note that “I’m becoming increasingly bullish that we will be able to cover these fuel increases with revenue increases,” and also believes that “the industry will retain a much higher percent of the fare increases that would be typical historically.”
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What it means to Alaska Air
Given that Alaska competes with Southwest on some routes and is suffering from rising jet fuel prices, the news from Southwest is particularly relevant. For example, in its recent first-quarter earnings report, Alaska’s management said higher fuel costs would impact earnings per share (EPS) by $0.70 in the first quarter and by more than $3 in the second quarter.
Image source: Getty Images.
These are significant numbers from an airline that analysts expect to report a $0.77-per-share loss in 2026 and then $6.32 in EPS in 2027. However, if Alaska can offset fuel costs with higher prices, then those estimates might need a positive revision.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group, Delta Air Lines, and Southwest Airlines. The Motley Fool has a disclosure policy.
(Bethel, AK) –Wednesday, the Ninth Circuit Court of Appeals issued a favorable opinion for the State of Alaska in ConocoPhillips Alaska v. Alaska Oil and Gas Conservation Commission (AOGCC), agreeing that State laws requiring disclosure of oil well data are not preempted by federal law.
“Alaska relies heavily on our resources and resource development,” said Acting Alaska Attorney General Cori Mills. “We are also stewards of those resources for the citizens of Alaska. Alaska’s law both allows resource development now, and encourages further development and exploration in the future. We’re pleased that the Ninth Circuit recognized that federal law has not overridden Alaska’s balanced approach.”
The Alaska Oil and Gas Conservation Commission regulates oil and gas operations throughout Alaska, including within the National Petroleum Reserve–Alaska (NPR–A). Under Alaska law, companies need permits from the AOGCC to drill and must submit well data. The AOGCC is required to keep well data confidential for 24 months.
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ConocoPhillips drilled several wells on lease holdings within the NPR–A and submitted data to the AOGCC. When the 24-month period expired, the AOGCC notified ConocoPhillips of the upcoming well data disclosure. ConocoPhillips sued in federal court to stop the disclosure process claiming that the Naval Petroleum Reserves Production Act, the federal law allowing private exploration in the NPR–A, preempted Alaska’s 24-month disclosure law. The federal district court found Alaska law preempted, and the AOGCC sought appellate review by the Ninth Circuit Court of Appeals.
On appeal, the Ninth Circuit agreed with the AOGCC. The federal Production Act does not preempt state law. The Ninth Circuit therefore reversed the district court’s holding to the contrary.
“The Alaska Oil and Gas Conservation Commission is pleased with the court’s decision upholding Alaska law,” said AOGCC Commissioner Jessie Chmielowski in a declaration filed in the litigation court. “Alaska’s balanced approach to well data confidentiality leads to increased exploration activity, not less. Alaska law allows for a two-year confidentiality period on exploration well data to leverage a company’s investment in drilling. Thereafter, making the data public has incentivized exploration on the North Slope. Placing well data in the public record allows competing companies to evaluate different exploration concepts or interpretations based on seismic data that, without well data, are just educated guesses.”
Alaska Democratic gubernatorial candidate Jonathan Kreiss-Tomkins (Photo courtesy Jonathan Kreiss-Tomkins)
Alaska needs change. That’s why I’m running for governor: to bring new energy and a new generation of leadership to the governor’s office.
For 13 years in a row, more Alaskans have left our great state than have moved here. Prices are rising, schools are closing and Alaskans are getting left behind.
This year, those planning to leave Alaska include Ben and Catherine Walker, both recipients of Alaska’s Teacher of the Year Award. They can’t justify staying in the place they grew up in and love because of our failure to invest in the fundamentals, such as our schools.
The problem is personal. I’m 37. Many of those leaving Alaska are my age — debating whether there’s a future for us here or not. It’s a challenge we must solve.
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I love challenges.
Back in 2012, I dropped out of college to challenge an entrenched Republican incumbent legislator who was running unopposed to represent my home region of Southeast Alaska. I launched a scrappy, grassroots campaign and focused on the kitchen table issues that matter to every Alaskan: good schools, getting our fair share of oil revenues, lowering costs, protecting our fisheries. I won — by 32 votes.
When I was sworn in, I was baby-faced and bushy-tailed, just 23 years old. It was the beginning of a decade-long tenure in the Legislature. A lot happened in those 10 years.
Among the most important: We formed the House Bipartisan Coalition in 2016. While I have a “D” next to my name, I believe strongly in working across party lines. That’s what the Bipartisan Coalition was, and is, all about: Democrats, moderate Republicans and independents, all working together to do what’s best for Alaska.
I want to bring that same bipartisan, vigorous problem-solving spirit to the governor’s office, where it has been nonexistent the last eight years.
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As governor, I want to work hand in hand with the Legislature to deliver some desperately needed wins for Alaska that will make our lives better and get our state back on track:
• Reinvest in our public schools. Our school districts are in battlefield triage mode, but instead of amputating limbs, our school boards are forced to choose which sports to cut, which electives to discontinue and which neighborhood school to close. Enough already. Get school funding back up to par.
• Forward fund our schools. Our school districts shouldn’t have to guess how much education funding will end up being appropriated in end-of-session legislative haggling.
This circus forces school districts to prospectively fire teachers, then rehire them a month or two later, when they find out the final education funding number. It’s awful for all involved. We should fix it by forward funding.
• Close the Hilcorp corporate income tax loophole. Hilcorp should pay their fair share in taxes just as ConocoPhillips, and nearly every other major corporation in Alaska, already does.
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• Lower the cost of energy. Chugach Electric Association, Golden Valley Electric Association, Homer Electric Association and Matanuska Electric Association operate about 1,700 megawatts in power generation capacity. Peak Railbelt winter demand is half that: about 850 megawatts. Guess who pays for the nearly gigawatt in underused and unused power plants? You, on your power bill. The governor should force the co-ops to work together, reduce redundancies and diversify energy sources, including renewables, in order to reduce the sky-high cost of energy for Alaskans.
• Lower the cost of childcare. Alaska has inadvertently created a system of childcare permitting and licensing that effectively amounts to death by a thousand pieces of paperwork. It’s creating scarcity and cost. We need to fix it.
• Lower the cost of housing. Cut red tape to make it easier and cheaper to build more homes of all kinds — from tiny homes and ADUs to manufactured and modular housing, to apartments and condos, to traditional single-family homes. More housing of all kinds, faster.
• Rein in bottom-trawl bycatch. I will nominate Alaskans to the North Pacific Fishery Management Council who will make sure that Alaska and Alaskans — not Seattle and Lower 48 industry interests — foremost benefit from our fisheries.
• Responsibly develop our resources. Support projects that have regional buy-in and support, such as Pikka on the North Slope, which just produced first oil this month, while saying “no” when the risks are too great and those in the region are opposed, as is the case with Pebble.
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• Grow our tourism economy. And let’s crack the code on winter tourism while we’re at it. If Iceland can do it, we darn well can, too. Fairbanks is having burgeoning winter tourism success. Let’s follow their great lead.
• Make Alaska an awesome place to live. Let’s build dozens more public-use cabins. Let’s build an alpine hut-to-hut system like they have in New Zealand and the Alps. Let’s build the Alaska Long Trail. Let’s make Anchorage a world-class winter city.
Does this sound like the kind of Alaska you want to live in? Then I have great news: We are the governor campaign for you. And if what you just read gives you indigestion, you’ll be relieved to know you have 17 other options.
I have more great news: I can win.
After beating an entrenched Republican incumbent, I spent a decade representing a swingy district that voted for Donald Trump.
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In those 10 years, I recorded some of the highest margins of crossover support from Trump voters of any Democrat in Alaska. I ran 12% ahead of Hillary Clinton in 2016 and 15% ahead of Joe Biden in 2020.
Here’s the simple truth: Whoever becomes our next governor will need to win with the support of significant numbers of independents and moderate Republicans, in addition to Democrats. I’ve done that. And I’ll do it again. Will you join me?
Former state Rep. Jonathan Kreiss-Tomkins of Sitka is a candidate for governor of Alaska.
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