The Anchorage School Board requests that the Legislature implement a plan or method to
deal with the rising cost of getting kids to school, which is one of the Anchorage School District’s
major responsibilities. The State of Alaska has benefited greatly from the sustained increase in
crude oil prices, but the state’s public schools, are struggling to keep buses and fuel budgets
operating efficiently. The funding mechanism adopted in 2003 caps per-student allocation at
the FY03 level with inflationary adjustments that carried through FY05. There are no inflation
adjustments for the next fiscal year.