Rep. Gara: Parnell Pumps Money Into All Agencies – Except Education

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CONTACT: Toby Smith Legislative Aide

February 9, 2012
Rep. Gara: Parnell Pumps Money Into All Agencies – Except Education
Proposed budget flat funds education, covers inflation increases for all other agencies
This year Governor Sean Parnell proposes to fund K-12 students at the same level as they were funded two years ago, yet his budget includes increases for every other state agency other than education.
“Freezing school funding to 2010 levels, without recognizing costs have gone up with inflation, translates into a major education cut. The proof’s in the pudding. It is causing schools across the state to plan for layoffs and the end of courses and summer school. The bottom line is that the Governor has granted state employees and bureaucrats inflation increases – just not kids,” said Rep. Les Gara.
Under the governor’s budget every state agency has been granted funds to recognize the reality of inflation. The governor’s salary and benefit increases for those agencies total roughly $45 million.
“School cuts don’t increase opportunity. Letting funding lag behind inflation – and letting it lag to 2010 levels, will only undercut our children’s opportunities to succeed in school and prepare for the workforce,” said Rep. Pete Petersen (D-Anchorage) who has taken the lead on legislation to make sure inflation does not eat away at school resources so schools can avoid cuts to teachers, staff and courses.
Alaska funds its schools by granting a certain amount of dollars per student under what’s called the base student allocation. Two years ago that amount was $5,680 per student. It remains the same under Governor Parnell’s budget this year. Combined inflation of roughly 5% in the years since the last funding adjustment has led to significant cut to school budgets. s when every other agency receives a funding increase to offset cost of living increases.
The governor has tried to shift the focus to other funds the Legislature put into schools starting around 2008, most of which the Legislature appropriated to make up for past inequities in rural and special needs education funding. While those funds helped rural schools and special education students, they too are being eaten away by inflation under the governor’s recent budgets and current proposal. Even with the money the governor is referencing from the Legislature’s 2008 plan, non-special education students in urban districts will receive no more funding under the governor’s proposal than they did two years ago.
Likewise, the Legislature wisely took a good step starting in fiscal year 2008, and offered help to local school districts to help pay for the multi-billion school district retirement system debt. That funding formula also has not changed since 2008.
So, while the governor has been taking credit for decisions the legislature made years ago, the fact is that he is proposing a per student funding level for next year that ignores the rising costs of providing education and is frozen at the same level it was two years ago. Even one time “fuel cost” funding added by the Legislature last year to help schools has been left out of the governor’s budget this year. As a result, Fairbanks, Juneau, and Anchorage school districts have announced major staffing cuts under the based on the governor’s proposed budget, and in Anchorage, officials are faced with the prospect of closing summer school for students who need the extra help to succeed.
Representatives Tuck, Gara, Kawasaki, Kerttula, and Gardner are co-sponsors of Rep. Petersen’s HB 143 to hold schools harmless from inflation.

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