$20M funding increase for Alaska pupil transportation
The boost is among an additional $50 million for K-12 education that Gov. Sean Parnell says he will approve. Steven Kalmes, director of transportation services at Anchorage School District, discusses with SBF the increase in transportation funding and the changes that will come with it.

Alaska Gov. Sean Parnell said he will approve additional funds for education, including a $19.7 million boost for pupil transportation. Pictured is a bus at West Valley High School in Fairbanks.
JUNEAU, Alaska — School districts in Alaska will soon get some welcome relief from increasing education costs.
Gov. Sean Parnell announced on Tuesday that he will sign legislation that provides about $50 million in additional funding for K-12 education, including a boost for school busing.
“I understand the pressure on school district budgets,” Parnell said. “I supported legislation to address specific costs, including pupil transportation and vocational education. School districts will receive more than $50 million in additional funding to deliver quality education to Alaska’s students.”
The funding increase for pupil transportation is $19.7 million.
“We are fortunate,” Steven Kalmes, director of transportation services for Anchorage School District, told SBF of the additional funding. “We haven’t been hit nearly as hard as other states with the recession.”
Still, Anchorage School District recently had a $2.2 million shortfall in transportation. But with the new state increases, Kalmes said that next year his district’s transportation will be reimbursed “pretty close to full costs.”
The amount of pupil transportation funding that Alaska school districts receive is based on their average daily membership (ADM).
The state opted for the ADM model in 2002, a change from the direct reimbursement program that was previously in use.
“There was concern from the Legislature that transportation costs were continuing to increase,” Kalmes said. “They thought that if we got capped, it would force us to be more efficient.”
Since 2002, there have been a few fiscal increases for pupil transportation, but “nothing substantial,” Kalmes said. “It was obvious that we needed more funding.”
With the new funding increases, the Alaska Department of Education will have more oversight of pupil transportation throughout the state. Kalmes said that some regulations that were dropped with the shift in 2002 will be returning, and there will again be a designated state director of pupil transportation.
The education appropriation bills also provide an increase of $5.9 million for vocational education and a $25 million one-time funding based on student enrollment.
The total state-funded K-12 education and pupil transportation budget for FY 2013 is $1.2 billion.
Review of the appropriation bills is still in progress. Parnell is expected to sign them before the end of May.
More Management

Michigan Association Announces 2026 Award Winners
See who earned top honors at the 2026 Michigan Association for Pupil Transportation conference, recognizing excellence in school transportation statewide.
Read More →Inside MAPT 2026: Michigan’s School Transportation Community Connects at Boyne Mountain
Check out highlights from the 2026 MAPT Summer Conference, where over 300 transportation pros gathered for training, networking, awards, and trade show.
Read More →
Summit School Services to Complete Fleetwide Samsara Technology Rollout
The company said outfitting its entire fleet with AI-powered safety and fleet management technology will strengthen student safety and operational efficiency across its local brands.
Read More →
Why the School Bus May Be America's Most Overlooked Icon
Every day, millions of students climb aboard. But few realize the yellow school bus has helped transform education, connect communities, and come to symbolize civic responsibility.
Read More →
Why More Drivers Won’t Fix the Shortage
Hiring isn’t enough. Learn how leading fleets are solving driver shortages through smarter retention, training, and culture strategies.
Read More →
SBFX Keynote Announced: Ann Vote to Share Tips on Leadership and Team Culture
Unveiling the full agenda for SBFX 2026 in Scottsdale this September: Here's who will be headlining the event throughout our two days together, and what to expect.
Read More →The School Bus as an American Icon: Exploring the Past, Present, and Future of the Yellow Bus
As America approaches its 250th anniversary, Blue Bird's Brad Beauchamp explores the history of the yellow school bus, its impact on education, and where student transportation is headed next.
Read More →
Durham School Services Adds New District Contracts Across Five States
The latest contract awards and renewals will bring the company's transportation services to more students while extending several long-standing district relationships.
Read More →
6 School Districts Named Transfinder's 2026 Top Transportation Teams
The software company has named six school districts across four states to its list for the fourth year, with one 'three-peat' winner. Find out which teams took home top honors!
Read More →
Innovation Was the Answer: Five Lessons Learned in School Transportation from 2025–26
Transportation leaders are embracing technology, transparency, and operational flexibility to meet growing demands with limited resources.
Read More →


