Cordova Council approves $181,000 school funding increase, defers payment decision

The Cordova City Council voted May 7 to increase the city's contribution to the Cordova School District by $181,000 for the fiscal year ending June 30, 2027. The council approved half of the district's $362,000 funding request. Members deferred a decision on how to pay for the increase until the May 20 meeting, when they will set the mill rate.

The district faces growing enrollment pressures. Thirty-six students enter seventh grade next year. Twenty-one seniors graduate. Council Member Debra Adams said no high school classroom can hold 36 students. The district must split the class and reassign a teacher who would otherwise teach upper-level courses. Adams noted that fifth grade has 34 students, fourth grade has 35, and third grade has 39.

Superintendent Alex Russin told the council the district has operated without a dedicated math teacher for three consecutive years. Russin is retiring after 11 years. The district's budget includes funding for a math teacher position. A potential hire is pending school board approval at the next meeting. Russin said the district will first cut administrative expenses rather than classroom resources if the funding shortfall requires further reductions.

Council Member Kasey Kinsman advocated for a mill-rate increase. He argued it would distribute the cost across the community and provide a sustainable funding source. Council Member Mike Mickelson opposed raising property taxes. He cited rising fuel and grocery costs and concern that higher taxes would drive families out of town. Council Member Debra Adams suggested exploring a withdrawal from the city's permanent fund. Several members expressed reluctance to tap that reserve. Some members discussed using Secure Rural Schools funds or other uncertain revenues as offsets. No firm decision was made.

The district's fund balance is projected to exceed the state-allowed 10 percent of expenditures. The district will use the surplus for prepaid expenses and curriculum purchases rather than return it to the state. Russin explained that fund-balance surpluses typically result from mid-year staff resignations or lower-than-budgeted costs for goods and services. The district maintains a minimum operating balance of roughly $450,000. Monthly payroll runs $250,000 to $270,000. The balance covers payroll and pays contracted service providers before quarterly state reimbursements arrive.

A 0.375-mill increase would generate approximately $121,000. That would leave a $60,000 gap if the council chooses that funding path. Council Member Debra Adams noted that the 2025 deficit discussed in March council minutes would erode recent gains in cash reserves. The city also faces an $85,000 shortfall on the Second Street hatch project. The city has exhausted the 2020 fish-disaster relief funds on the pool, master plan, and an unexpected oil-tax refund.