Essential Update on Education Funding: Discover the Financial Impact of HB 69 Over the Next Three Years

By Rep. Kevin McCabe

The House Democrats have introduced a new education funding bill, HB 69. This bill suggests a permanent increase to the Base Student Allocation (BSA) over the next three years.

Here’s how the costs break down:

• FY26: $326.3 million
• FY27: $501.3 million
• FY28: $645.7 million

This totals up to $1.47 billion over three years, adding significantly to the current BSA.

If passed, the Department of Education’s budget for FY26 would rise to $1.58 billion, a sharp increase from the Governor’s proposed $1.25 billion.

We all agree on the importance of funding education in Alaska. Our students deserve the best resources to succeed, and our schools are key to our future. But we must also consider our financial situation. We need to ensure that every dollar allocated is spent wisely.

Let’s face it: any increase in funding has to come from somewhere. It might affect the Permanent Fund Dividend (PFD). Are Alaskans willing to give up their PFDs for this spending? What about the potential for new taxes? Can we support this funding increase without risking vital services like road maintenance, healthcare, and other state programs?

It’s essential to ask some tough questions: Who will bear the cost? What programs will be impacted? What is the commitment from school district leaders regarding this funding? Will it go to hiring more staff or directly benefit classrooms? We need an honest discussion that goes beyond catchy slogans.

Most Alaskans want to fund education but expect transparency and accountability. Simply increasing funds isn’t enough. The focus should be on ensuring that money enhances the learning experience for students, not just filling administrative budgets.

Last year, House Republicans supported the largest single education funding increase in state history, contributing $322 million to the BSA. This was a significant step forward, but it’s critical to remember that the goal isn’t just to throw money at challenges. We need to ensure every dollar spent leads to meaningful results for our kids.

Alaska’s children deserve top-notch education. We must fund education effectively and responsibly, demanding transparency from school districts not only to lawmakers but also to parents. We should aim for real reforms that impact our students positively while being clear about the financial choices we’re making. After all, investing in our kids has the highest returns. But if we cut funding for essential services like transportation, how will kids get to school?

The dialogue about our education funding is ongoing. I remain committed to securing a bright future for our students and all Alaskans.

Rep. Kevin McCabe represents Big Lake, Alaska.