Quick, Factual Summary of SB 277 and Its Effects on Nenana
SB 277 was introduced on March 13, 2026, by the Senate Education Committee. It makes several changes to education funding, including a modest increase to the Base Student Allocation (BSA), higher administrative fees districts can charge charter schools, and—most controversially—major changes to how correspondence study programs (publicly funded homeschooling options) are funded and counted.

The key problem for opponents (and the reason many families and rural districts are fighting it) is Section 7 of the bill. Right now:
- Families can enroll their kids in any approved statewide correspondence program (like CyberLynx, IDEA, Raven, etc.).
- The full per-student funding (BSA + multipliers) follows the child to the district that actually runs the program, even if the family lives elsewhere.

SB 277 would redirect that funding so correspondence students are counted in their district of residence (specifically the lowest-enrollment school in that district). The home district would then negotiate a “cooperative agreement” with the correspondence program and could keep a share of the money for admin costs or services. Critics say this effectively starves the statewide correspondence programs of nearly all funding for out-of-district students.

Direct impact on Nenana City School District:
- Nenana operates the CyberLynx Correspondence Program, which serves thousands of students statewide (the vast majority live outside Nenana).
- The brick-and-mortar Nenana school is small, so CyberLynx revenue is a huge part of the district’s budget. It funds teachers, staff, services, and keeps the district viable.
- Under SB 277, nearly all that out-of-district funding would be sent back to the students’ home districts instead. Nenana would lose the vast majority of CyberLynx revenue.
- Result: Severe budget shortfalls, potential staff layoffs, reduced services for local students, and possible closure or drastic cuts to the CyberLynx program itself.
- Similar small rural districts (Galena/IDEA, Yukon-Koyukuk) would also be hit hard. Correspondence programs currently bring critical jobs and revenue into these communities.

While the bill does raise overall education spending (≈ $100 million, including a ~$125 BSA increase and new reading grants), opponents argue this does not offset the loss of school choice or the damage to successful rural programs that serve over 23,000 Alaskan families.

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PETITION: Protect Nenana City School District & Alaska School Choice – Oppose Senate Bill 277

To:
Alaska State Senate Education Committee  
Alaska State Legislature  
Governor Mike Dunleavy  

We, the undersigned Alaska residents, parents, educators, and concerned citizens, strongly oppose Senate Bill 277 in its current form.

SB 277 would fundamentally change how correspondence study programs are funded. Instead of the money following the student to the statewide program they actually attend (such as CyberLynx operated by Nenana City School District), Section 7 of the bill would reassign those students’ funding and Average Daily Membership (ADM) counts to their district of residence—specifically the lowest-enrollment school in that district. The home district could then keep a portion of the funds through “cooperative agreements.”

This change would have a devastating effect on the Nenana City School District:
- Nenana operates the highly successful CyberLynx Correspondence Program, which serves thousands of students from across Alaska (the overwhelming majority live outside the district).
- CyberLynx revenue is essential to Nenana’s budget. The district’s brick-and-mortar school is small; the correspondence program supports teaching jobs, staff positions, and vital services for both local and statewide families.
- Under SB 277, Nenana would lose funding for nearly all its out-of-district CyberLynx students. This would create massive budget shortfalls, threaten staff layoffs, reduce educational services, and likely force severe cuts or closure of the CyberLynx program.
- Small rural districts like Nenana, Galena, and Yukon-Koyukuk have built thriving correspondence programs that bring jobs and resources into their communities. SB 277 would pull the rug out from under them.

We support reasonable increases in education funding, but not at the expense of school choice and rural Alaska. Over 23,000 families currently rely on flexible, parent-driven correspondence programs. SB 277 undermines parental rights, centralizes control in larger districts, and harms the very communities that have innovated to serve students statewide.

We demand the Legislature:
1. Reject SB 277 in its current form.
2. Amend the bill to keep the current “money follows the student” model for approved correspondence programs.
3. Protect the economic and educational benefits that programs like CyberLynx provide to small districts like Nenana.

School choice works for Alaska families. Do not destroy successful programs that serve rural communities and thousands of homeschooling families.