The passage of Senate Bill 36, Ch. 83, SLA 1998, carried with it certain reporting requirements for the Department of Education & Early Development to the 22nd legislature by January 15, 2001. There are three required reports. "Tab 1: District Cost Factors": Legislation requires the department to monitor district cost factors and submit a report to the legislature every other year. The department recommends that district cost factors remain at their current levels because there are not any empirical data to support changing the district cost factors at this time. "Tab 2: Comparison of Old to New Funding Formula": This report compares adjustments between the old and new funding formulas such as size, special needs, and supplemental funding floor. The department recommends the repeal of AS 14.17.490(d), erosion of the supplemental funding floor. The department recommends that AS 14.17 be amended to include a hold-harmless provision for school districts that experience a decrease in student enrollments of 10 percent or more from 1 year to the next. "Tab 3: Educational Adequacy": This report focuses primarily on the impact of inflation on education funding. The department recommends that changes be made to public-school funding formula to recoup losses due to inflation and to provide for future inflationary adjustments. (Each report includes its own set of supporting documentation.) (WFA)