Uncertainties complicate school district budget

  • By Kelly Sullivan
  • Thursday, March 10, 2016 9:26pm
  • News

With the Board of Education slated to vote on the Kenai Peninsula Borough School District fiscal year 2017 Operating Budget on April 4, much still is up in the air.

Revenue from both the state and borough is uncertain and costs may increase once negotiations with the teacher and support staff associations reach an agreement. The projected deficit is the smallest it has been in years, but administrators say that figure doesn’t hold weight.

“We have already made a little over $4.5 million worth of budget cuts this year in reducing some pretty vital things to education,” said Assistant Superintendent Dave Jones at Monday’s board meeting.

Originally, administrators projected the General Fund deficit at $717,000, and in March lowered it to $138,665 after two important pieces of information were gleaned from the state.

The school district can request more money from the Kenai Peninsula Borough next year because of updated calculation for true value of taxable real and personal property of Alaska, and 20 more students that qualify as intensive needs enrolled this year than were projected.

With the new information about the increases to the local contribution, Dusek submitted an official request Feb. 29 to borough Mayor Mike Navarre that the Kenai Peninsula Borough Assembly fund the maximum allowable contribution for the next year.

Board member Marty Anderson said he the body has a good history of fully funding the school district, but it is one of many factors that complicated presenting the state and borough with a balanced budget in April, he said.

“It’s kind of a moving target,” Anderson said. “We are doing the best we can.”

The borough’s maximum allowable contribution tops out at $34,817,188.

“When we have a remaining deficit of $717,000 or a remaining deficit of $138,000, people need to understand that is after we have already cut $4.5 million,” Jones said.

Those cuts include 35.41 full time equivalent staff and certified staff, support, counselor and administrative positions totaling nearly $3.1 million, plus another $1.4 in other areas.

The pupil-teacher ratio is set to rise in all classrooms, in all sites other than the two alternative high schools, Homer Flex and Kenai Alternative, which administrators are also recommending reductions for .5 full time equivalent teaching hours.

Kenai Peninsula Education Association President David Brighton said he thinks the cuts could be taken at a slower pace.

“I certainly think they do a good job allocating the money that is available,” Brighton said. “I do feel they are not spending quite enough in fiscal year (20)17… you save money for the rainy days and I think these are the rainy days.”

Currently the unassigned fund balance is reported at just less than $8 million, according to the preliminary budget from Jan. 11.

“The other thing that is not on here is that there are no estimates in here for the negotiations that are currently going on,” Jones said. “If there is a settlement with that then any additional costs that come to that will increase those deficit amounts.”

Brighton said right now the school district is budgeting for roughly a $1.2 million increase in salaries and benefits that may follow negotiations. He also added the Kenai Peninsula Education and Kenai Peninsula Education Support associations are projecting their newest health care proposal could save the school district up to $3 million next year.

The associations are asking the school district sign up with Public Education Health Trust, a limb of National Education Association of Alaska. The plan would allow roughly 100 teachers to opt out of receiving health care with the school district, saving $15-18,000 per employee, he said.

Other factors may also lower the deficit.

In the school district’s budget doesn’t include the $50 increase to the base student allocation in the foundation formula, which determines how much a student receives in state funding, promised in Gov. Bill Walker’s fiscal year 2017 Operating Budget.

“It’s sitting in the house right now which has left it in at this point, so we will see,” Jones said. “Depending on who you listen to on the hill, the Senate plans to take it out so we will see.”

If the $50 is kept that means an additional $800,000 from the state and $300,000 from the borough, Jones said. Jones added that a 5 percent reduction to the BSA that does not include Walker’s addition has been proposed, which would result in $5 million less for the school district.

“We also have developed plans if there are deeper cuts from the state and thus the borough,” Dusek said. “All of those plans include significant staff reductions and greater use of fund balance. If the $50 increase is maintained, we would put that back into the classroom by retaining more staff starting at the elementary level.”

Reach Kelly Sullivan at kelly.sullivan@peninsulaclarion.com.

More in News

The Kenai Peninsula College main entrance on Aug. 18, 2022, in Soldotna, Alaska. (Jake Dye/Peninsula Clarion)
Chiappone and Dunstan to speak at the KPC Showcase

Kenai Peninsula College continues its showcase with two new speakers this week and next

U.S. Rep. Mary Peltola, D-Alaska, talks about issues of concern regarding the proposed merger of supermarket chains Kroger and Albertsons during a floor speech in the House chamber on Wednesday. (Screenshot from official U.S. House of Representatives video feed)
Begich leads in early results, but Alaska’s U.S. House race won’t be immediately decided

About 245,000 ballots had been counted by 11:32 p.m., and Peltola trailed by about 5 percentage points

The Alaska governor’s mansion on Wednesday. Gov. Mike Dunleavy is considered a contender for a post in Donald Trump’s second presidential administration. (Mark Sabbatini / Juneau Empire)
Election summary: Trump wins, GOP takes over U.S. Senate, Alaska may get new governor

Begich and repeal of ranked choice voting narrowly lead; GOP may lose control of state House.

Nesbett Courthouse in downtown Anchorage on Oct. 7, 2024. (Yereth Rosen/Alaska Beacon)
Voters line up at the polling site at Anchorage City Hall on Nov. 4, 2024. City Hall was one of the designated early voting sites in Alaska’s largest city. It is not a designated site for Election Day voting. (Yereth Rosen/Alaska Beacon)
Alaska Republicans lose two seats in state House, increasing odds of leadership switch

Rural Alaska precincts had reported few results by 11:30 p.m. Tuesday night.

Donald Trump won or was leading as of Wednesday morning in all seven swing states in the 2024 presidential election. (Doug Mills / The New York Times)
Donald Trump returns to power, ushering in new era of uncertainty

He played on fears of immigrants and economic worries to defeat Vice President Kamala Harris.

A voter is handed as ballot at Woodworth School in Dearborn, Mich., on Tuesday, Nov. 5, 2024. One of the most consequential presidential elections in the nation’s modern history is well underway, as voters flocked to churches, schools and community centers to shape the future of American democracy. (Nick Hagen/The New York Times)
Trump verges on victory, picking up Pennsylvania

Donald Trump has captured Pennsylvania, the biggest prize of the seven battleground… Continue reading

Signs and supporters line the Kenai Spur Highway in Kenai, Alaska, on Tuesday, Nov. 5, 2024. (Jake Dye/Peninsula Clarion)
Update: Unofficial results for the 2024 general election

Preliminary, unofficial election results as of 9:55 p.m.

Poll worker Carol Louthan helps voters submit ballots at the Soldotna Regional Sports Complex in Soldotna, Alaska, on Tuesday, Nov. 5, 2024. (Jake Dye/Peninsula Clarion)
Update: Bjorkman, Ruffridge, Elam and Vance lead in election night results

Several residents said that they came out to vote because they knew this election was “a big one.”

Most Read