Gov. Mike Dunleavy has vetoed House Bill 174, a measure passed by the Alaska Legislature that aimed to expand access to construction and maintenance funding for Mt. Edgecumbe High School and rural teacher housing across the state.
The bill comes at a time when state fiscal resources are scarce. HB 174 sought to broaden the scope of the Regional Education Attendance Area and Small Municipal School District School Fund (REAA Fund), which was originally established to support rural school construction and later expanded to include major maintenance. HB 174 would have made two major changes:
- Inclusion of Mt. Edgecumbe High School as an eligible recipient for construction and maintenance grants from the REAA Fund.
- Expansion of funding eligibility to include state-owned rural teacher housing, allowing maintenance grants to support residential facilities for educators in underserved school districts.
In his veto statement, Dunleavy said the bill fundamentally altered the purpose and structure of the REAA Fund. “HB 174 would transform the REAA Fund … by adding Mt. Edgecumbe High School, and for the first time teacher-housing maintenance, a cost traditionally paid by local communities,” he wrote.
He added that the bill “diminished the equity across school districts that is provided by the Fund and commits the state to a local housing obligation, diverting already scarce dollars away from the critical classroom repairs and complicating grant rankings.”
The measure also removed the REAA Fund’s $70 million statutory cap, allowing unrestricted general funds to accumulate in the account without deadlines for project implementation. That change, according to the governor, could lead to delayed spending and create long-term financial commitments for the state.
In addition to the fiscal policy concerns, the Department of Education and Early Development (DEED) estimated the bill would require over $300,000 annually in new costs. The expansion of eligible projects would necessitate two new state positions — a school finance specialist and a building management specialist — and annual travel throughout the state for technical support.
Dunleavy’s veto is part of his administration’s resistance to expanding the state’s role in what he views as local responsibilities, especially amid broader concerns about Alaska’s fiscal sustainability.
Go Governor! With the last two years of increases it is time to hold rural districts accountable for money they are given. I lived many years in rural/bush AK and assure you maintenance is not taken care of and expectation is that everyone else in AK pays for it….many of the districts are not boroughs so have no tax base and pay nothing for their schools. Time to stop it!! No excuses.
” maintenance is not taken care of”. Maintenance takes money judy.