State v. Ketchikan Gateway Borough

Summary

The Alaska Supreme Court held that Alaska’s required local contribution to public school funding does not violate the Alaska Constitution’s dedicated funds clause. The court concluded that the funding formula is a state-local cooperative program and that the required local contribution is not the proceeds of a “state tax or license” within the meaning of article IX, section 7. The court reversed the superior court’s grant of summary judgment to Ketchikan Gateway Borough.

Holdings

1. The existing school funding formula and its required local contribution do not violate article IX, section 7 because the contribution is part of a longstanding state-local cooperative program and is not a 'state tax or license' within the meaning of the dedicated funds clause.
2. The required local contribution does not violate article IX, section 13 because it does not withdraw money from the state treasury and is not an appropriation subject to the constitutional appropriations process.
3. The required local contribution does not violate article II, section 15 because it is not an item in an appropriation bill subject to the governor's veto power.
4. The Borough was not entitled to a refund of its protested payment because the court's determination that the required local contribution was constitutional eliminated the basis for the refund claim.

Questions Presented

1. Whether Alaska's required local contribution for city and borough school districts violates the dedicated funds clause of article IX, section 7 of the Alaska Constitution.
2. Whether the required local contribution violates the appropriations clause of article IX, section 13 of the Alaska Constitution.
3. Whether the required local contribution violates the governor's veto clause of article II, section 15 of the Alaska Constitution.
4. Whether the Borough was entitled in equity to a refund of its protested payment.

Disposition

reversed_and_remanded