An Act relating to education; relating to local contributions of a city or borough school district; relating to school funding; and providing for an effective date.

HB 122 modifies Alaska's school funding system to clarify how local school districts fund charter schools. It requires local boards to provide charter schools with annual budgets based on student enrollment, minus administrative costs capped at 4% (excluding facility costs like rent or utilities). The bill specifies that budgets must include state aid, federal impact aid, and local contributions, but not facility expenses. This directly affects charter schools and local school districts in Alaska by standardizing funding calculations under the state's education finance framework.