Alaska has resolved school funding equity concerns, feds say, releasing $17.5M in pandemic aid

JUNEAU — The U.S. Department of Education on Friday told state education officials that a one-time funding boost this year had resolved a dispute over how COVID-19 aid was disbursed to Alaska schools.

For months, the federal education agency said Alaska had not funded schools equitably during the pandemic, which was a condition of receiving $359 million in federal education funding.

Federal officials said Alaska effectively cut funding to several of its highest-need school districts during the pandemic.

As a result, they withheld $17.5 million in September for Alaska schools, which will now be disbursed to the state.

The Alaska Department of Education and Early Development consistently denied the school funding cuts took place. State officials said Alaska’s school funding formula had kept spending equitable.

“It is a triumphant day for Alaska’s students, as our Maintenance of Equity battle with the US Department of Education has ended, and Alaska’s stance on the matter has been vindicated,” Alaska Education Commissioner Deena Bishop said in a prepared statement.

The dispute between the federal and state education departments had escalated over the past year.

Alaska was designated in March as ”a high-risk grantee,” which risked federal funding.

The Legislature appropriated $11.9 million to school districts as part of the budget in an effort to resolve the issue. Gov. Mike Dunleavy vetoed that funding in June, saying the need remained “indeterminate.”

In September, federal officials threatened to withhold $17.5 million in pandemic-era aid for Alaska schools — unless the state disbursed the same amount to several school districts.

On Friday, the U.S. Department of Education abruptly reversed course.

Adam Schott, principal deputy assistant secretary at the federal Office of Elementary and Secondary Education, told state officials that $175 million in one-time funding appropriated this year for Alaska schools had resolved the department’s equity concerns.

Schott did not immediately respond to a request for comment whether the state’s high-risk grantee status would now be lifted.

Dunleavy and education Bishop issued a statement Friday, celebrating the decision.

“From the very beginning, it was clear that the U.S. Department of Education’s allegations were meritless. Alaska was not going to back down because we knew we were right,” Dunleavy said.

He added that the dispute was evidence why he supported the concept of eliminating the federal education department.

Anchorage Democratic state Sen. Löki Tobin said she was led to believe that a one-time boost to school funding would not resolve the federal government’s equity concerns.

“I had asked this question several times to our federal partners and they said it had to be specific funds allocated and not funds for every district,” she said by text.

Tobin, chair of the Senate Education Committee, said she had no further comment about the letter sent Friday by Schott.