Kodiak Island Borough School District is facing a massive budget shortfall this year – about $8 million.
“We just have not been able to keep up with inflation,” said the district's superintendent, Cyndy Mika. “Public schools across Alaska, every public school system is desperately in need of funding boost.”
Mika and the district’s Board of Education have already made drastic decisions like closing North Star Elementary school and cutting vacant positions. Those reductions have made up about $3 million of the shortfall.
To make up the rest, the board decided at its meeting on April 21 to use $4.9 million of its fund balance, which is similar to savings, to avoid layoffs. But using that much would leave a projected fund balance of just $96,000 for emergencies.
It’s leaving the district in a dangerous position.
The budget passed by the board still relies on the state government passing some kind of increase to its education funding formula – the Base Student Allocation. Mika said they need at least $340 per student to make this work.
“And at this point, there is no guarantee,” Mika said.
That budget also relies on the Kodiak Island Borough increasing how much it funds the district by about $600,000 as well. Even then, it wouldn’t have any cushion to make up a deficit next year.
Kodiak’s not the only school system facing struggles. Sitka’s district started draining its fund balance in 2023. Districts in Juneau, Anchorage, Ketchikan, and Fairbanks have all either considered or voted to close schools in recent years.
A bill to permanently increase education funding by $1,000 per student did pass the Alaska Legislature earlier this year, but it was vetoed by Governor Mike Dunleavy.
“I don’t think any of us were surprised that it got vetoed,” Mika said. “The governor from the get-go was not a fan of just a straight BSA (increase) without what he considers to be policy changes.”
The majority of legislators voted to override the governor’s veto last week, but it wasn’t enough to meet the supermajority of 40 votes needed to overturn it.
The bill would have been the first time the state permanently increased education funding since 2017, except for a small increase for the Alaska Reads Act in 2022. The Legislature would need to pass a $1,808 increase to keep up with inflation dating back to 2011.
There are two bills that could increase education by the end of the legislative session. One bill would restrict cell phone use in classrooms and add $700 to the BSA. The governor also introduced a competing bill that would increase the BSA by $560 per student with more in targeted funding.
Unless the Legislature passes both, Mika said the district will still need to make cuts next year.
“Off the top, we’re going to have to make reductions unless the state comes through,” she said.
She said lawmakers would need to pass a $1,200 BSA increase for the district just to stabilize its finances. Otherwise, it will need to take even more drastic cuts in the coming years.
The legislative session ends May 21. The Kodiak Island Borough Assembly will decide whether to approve the district’s funding request by May 29.
