JUNEAU — The U.S. Department of Education this week designated Alaska a “high-risk grant recipient,” citing the state's failure to fairly distribute COVID-19 relief supplies to school districts.
The American Rescue Plan Act of 2021 gave schools across the country more than $125 billion to cover pandemic-related costs. As a condition of receiving $359 million in coronavirus funding from the federal government, Alaska will donate $30 million to the highest-need schools in four school districts, according to a March 27 letter from the U.S. Department of Education. is required to do so.
The Alaska Department of Education said it “refutes that allegation in the strongest possible terms.” The letter, dated March 22, says the state is already complying with federal requirements. He said he doesn't think it's necessary to provide additional funding to the school district.
“This is an incredibly surprising conclusion given the way we have funded our schools in the past,” Education Commissioner Deena Bishop said in a prepared statement Thursday.
In December, the U.S. Department of Education warned that schools could be designated as high-risk unless funding issues are resolved. The state plans to ask for reconsideration of the high-risk designation within 10 days.
In a March 27 letter, the U.S. Department of Education listed the amounts federal authorities say are still owed to four Alaska school districts. That includes her $16.6 million to the Anchorage School District. $9.7 million for the Kenai Peninsula Borough School District. $3.1 million to the Fairbanks-Northstar Borough School District. He is owed just over $200,000 to the Juneau School District.
Kenai Superintendent Clayton Holland said school administrators are trying to resolve a $15 million deficit. He said the $9.7 million in additional funding would help prevent layoffs and class size increases.
“That would be great news for Kenai, and I'm sure for other districts as well,” he said Thursday.
capital maintenance
The unresolved funding issue relates to the “equity preservation” provisions of the American Rescue Plan Act, the first federal funding measure to emerge. The provision required states not to cut funding for low-income students in the highest-need schools during the pandemic. The Alaska Department of Education says it made no such cuts and that the state's funding formula was fair.
Significant shifts in enrollment patterns during the pandemic have created challenges for states. About 41 states had problems with the first round of federal coronavirus relief for schools, according to the National Conference of State Legislatures. All but one state resolved these concerns.
“Alaska is the only state that has not met these requirements or has not provided an adequate plan to meet them,” Adam Schott, assistant secretary of the federal Department of Elementary and Secondary Education, wrote in a March 27 letter. mentioned in.
If Alaska does not comply with federal law, coronavirus funds could be recovered by the federal government. Federal school grants to Alaska could also be withheld, Schott said.
Alaska will receive $425 million in federal school aid in the fiscal year that begins July 1.
Sen. Loki Tobin, D-Anchorage, co-chair of the Senate Education Committee, said the “high risk” designation is a serious problem. He said the federal government could take a closer look at the Education Department's finances, which could put an even greater administrative burden on already strained state agencies.
“It puts us in a very precarious position,” she said. “We're hoping the federal government will give us some leniency, but they've obviously been generous for two years. And now they have to take the whip approach. “Because we have not fulfilled the obligations and commitments we agreed to when we received these relief funds.”
'Big concern'
The Dunleavy administration has 30 days to request $30 million be appropriated to the four school districts or present a plan for how to resolve the federal violations. The state also had 10 days to explain why the high-risk designation should be lifted.
This year, the Legislature asked the state Department of Education for answers on whether additional school funding should be added to this year's budget. The bipartisan Senate majority said they have been assured by state officials that equity issues will be resolved.
Kodiak Republican Senate President Gary Stevens said Thursday through a prepared statement that the “high risk” designation is “a great concern.”
“Without planning and quick action, local schools could run out of additional federal funding, and the onus will be placed on state coffers to fill the gap,” he said. Ta.
Rep. Delena Johnson, R-Palmer, who controls the House operating budget, said Thursday in the Finance Committee that the state Department of Education has recommended that lawmakers withhold additional funding from the budget for now. She said an appeal is underway between the Alaska Department of Justice and the federal government over the $30 million figure.
For months, there has been a back-and-forth between the state and federal departments of education over maintaining equity requirements. The March 18 letter indicated that some of the U.S. Department of Education's concerns have been resolved. Two school districts were taken off the list for additional funding or had their allocations reduced.
Karen Morrison, director of financial and support services for the Alaska Department of Education, said in a prepared statement Thursday that changes in the amounts “allegedly owed” to school districts mean the matter has not yet been determined by federal authorities. He said that it shows that.
“It's a shame”
The Juneau School District is facing an unprecedented financial crisis due to flat state funding and serious accounting errors. In December, the district was told by federal authorities that it would owe an additional $2.5 million. By March 4, state officials said they owed Juneau nothing. The U.S. Department of Education announced Juneau schools currently owe $200,000 through March 18, according to Superintendent Frank Hauser.
“It appears there were some significant data modifications during this process. Like all districts involved, we want to understand those variations and understand the process,” he said. Ta.
Juneau School Board member Will Muldoon said it's “unfortunate” that funding issues haven't been resolved as the district finalizes its budget.
“The Juneau School District used only reliable revenue numbers. This resulted in multiple school building closures and an overall reduction of 12% of staff,” he said.
An Anchorage School District spokesperson said Tuesday that district officials understand the state is still in the process of challenging the federal request. The $16.6 million allocated to Anchorage may not be final, and no resolution timeline has been set, a spokesperson said.
Kenai Superintendent Holland said he last spoke with Bishop School Board members Monday about funding issues. He said Bishop's message was that districts should not rely on receiving additional funding this year and that negotiations with the federal government are ongoing.
The Senate Education Committee has scheduled a hearing on maintaining equity requirements and high-risk designations next Wednesday. Tobin said the Alaska Department of Justice advised the Department of Education to decline the invitation because it is preparing a response but funding issues have not been resolved.
“I think this is very concerning because I think it's clear that the situation was handled incorrectly. There's been a misunderstanding. There was a lack of communication,” she said, adding that there was a high-risk situation. Regarding the designation, he added, “We don't need to be in a situation like this again.''