FAIRBANKS — An eight-year-old lawsuit alleging the state has not met its constitutional obligation to provide schooling in rural areas was settled in Juneau on Thursday.

Under the settlement agreement between the state and a nonprofit group representing rural students, Alaska will spend $18 million for program funding in the state’s 40 lowest-performing schools, which are all in rural districts.

The case, Moore vs. Alaska, originated in 2004 when the Citizens for the Educational Advancement of Alaska’s Children, or CEAAC, filed suit, claiming Alaska’s public education system didn’t meet constitutional standards.

The agreement came out of settlement discussions that began 10 months ago between a new attorney general, the commissioner of the Department of Education and Early Development and CEAAC. The settlement isn’t final until the Legislature approves the money.

“It’s been a long road. My excitement is that in 10 months we were to find some ways where we were able to bring it to where we are today,” Education Commissioner Mike Hanley said.

Hanley said the settlement was a compromise to ensure lasting improvements are made in the lowest-performing schools.

“The key feature is everyone brings something to the table,” he said. “There is a funding mechanism in this settlement, but it’s not a matter of the state saying ‘Oh, here you go.’ It is a matter of parties saying we all have skin in this game and moving forward with that.”

The state funding is split into two categories, with $12 million going to targeted projects, teacher retention and remedial efforts to help high school students meet graduation requirements. The remaining $6 million would be reserved to set up two-year kindergarten literacy programs.

CEAAC Executive Director Charles Wohlforth said early education is one of the key ways to improve learning in rural school districts. Many students, he said, enter school at a disadvantage, and the programs would give them a leg up.

“It’s going to be a future of collaboration, problem solving and hopefully giving new hope to those beautiful children of rural Alaska who deserve the best education they can receive,” Wohlforth said.

Schools also will have the opportunity to shape programs to fit their cultural needs, Wohlforth said. The program is set up so qualifying schools can apply for funding.

Project approval and monitoring will be overseen by a seven-member committee, with three members picked each by the Education Department and CEAA, with a seventh picked by both. Hanley and Wohlforth said their vision is that committee members would have some sort of hands-on experience with rural school districts.

Rep. Alan Dick, who represents the largest rural district in the state and chairs the House Education Committee, applauded the settlement.

“This is a day to celebrate,” he said. “I really believe it’s far bigger than most people can imagine. It’s not just about money — it’s about coming up with creative solutions that are going to provide for the school districts that are struggling with some real-life answers.”

Most of the 40 schools are in the Yupiit, Lower Kuskokwim, Lower Yukon, Yukon Flats or Northwest Arctic school districts and range in size from a few hundred to a few dozen students. Although they have a relatively small number of students, Wohlforth said, he hopes the program will set the stage for long-term improvement at all rural schools.

“Have we solved all the problems of rural education in some of our struggling schools in Alaska?” Wohlforth asked. “Well, I think the answer would be ‘No, $18 milion clearly is not going to be enough to solve this broad span of problems.’ We’re going to demonstrate some programs, we’re going to work on them collaboratively, and we’re going to prove this is the right way to go.”

Contact staff writer Matt Buxton at 459-7544.