Dec. 21—JUNEAU — The U.S. Department of Education told state education officials Friday that a one-time funding increase this year had resolved a dispute over how COVID-19 aid was being distributed to Alaska schools.
For months, the federal education agency said Alaska had not fairly funded schools during the pandemic, which was a condition of receiving $359 million in federal education funding.
Federal officials said Alaska has effectively cut funding to several of its most-needed school districts during the pandemic.
As a result, they withheld $17.5 million for Alaska schools in September, which will now be paid out to the state.
The Alaska Department of Education and Early Development consistently denied that there had been any cuts in school funding. State officials said Alaska’s school funding formula had kept spending fair.
“It is a triumphant day for Alaska’s students as our equity battle with the U.S. Department of Education has ended and Alaska’s position on this issue has been affirmed,” Alaska Education Commissioner Deena Bishop said in a statement prepared statement.
The dispute between the federal and state education departments had escalated over the past year.
Alaska was designated a “high-risk grantee” in March, putting federal funding at risk.
The Legislature allocated $11.9 million to school districts as part of the budget in an effort to solve the problem. Gov. Mike Dunleavy vetoed that funding in June, saying the need remained “undetermined.”
In September, federal officials threatened to withhold $17.5 million in pandemic-era aid for Alaska schools — unless the state paid out the same amount to different school districts.
On Friday, the U.S. Department of Education abruptly changed course.
Adam Schott, deputy assistant secretary at the federal Office of Elementary and Secondary Education, told administration officials that $175 million in one-time funding targeted for Alaska schools this year had solved the department’s equity problems.
Schott did not immediately respond to a request for comment on whether the state’s high-risk beneficiary status would now be lifted.
Dunleavy and Education Bishop released a statement Friday celebrating the decision.
“From the very beginning, it was clear that the U.S. Department of Education’s allegations were unfounded. Alaska had no intention of backing down because we knew we were right,” Dunleavy said.
He added that the dispute was proof of why he supported the concept of eliminating the federal Education Department.
Democratic Anchorage state Sen. Löki Tobin said she had come to believe that a one-time increase in school funding would not solve the federal government’s equity problems.
“I asked this question several times to our federal partners and they said it should be specific funds and not funds for each district,” she said by text message.
Tobin, chairman of the Senate Education Committee, said he had no further comment on the letter Schott sent Friday.
