Kodiak Assembly weighs $800,000 school funding compromise

The Kodiak Island Borough Assembly debated Thursday how much to increase school funding without raising property taxes. The school district asked for $1.6 million more than last year. Assembly members proposed roughly $800,000, using one-time interest earnings to bridge the gap.

The district says the money covers inflation and staffing costs. Utilities, fuel, supplies, and milk all cost more. The district cut $2.5 million in positions this year, but rising costs ate most of those savings. Staffing makes up over 80 percent of the budget.

Mike Litzow, a school board member, told the Assembly that flat state funding created the problem. If state aid had kept pace with inflation, the district would get $7.4 million more this year.

Alaska set the Base Student Allocation at $5,680 per student in 2011. It is now $6,660. Gov. Mike Dunleavy vetoed a permanent $680 increase in March 2024.

Superintendent Cindy Micka said the district is drawing down reserves. It used $3.1 million this year and plans to use $1.8 million next year, leaving less than $1 million in the fund balance.

Borough Manager Amy Williams said fully funding the school request would require raising the mill rate from 8.91 to roughly 9.4. That would cut into money for roof replacements at East Elementary and Old Harbor schools and upgrades to the hospital facility.

The mayor suggested treating next year as a bridge, using one-time resources while waiting to see what the state does. Williams recommended raising the seafood tax revenue projection from $465,000 to $767,000 to match actual collections. The Assembly supported the adjustment, which would add $302,000.

Several Assembly members warned against using one-time money for recurring costs. One member said state Sen. Lyman Hoffman told borough officials at a recent conference that no help is coming. Another member argued that education is a statutory obligation and should take priority over optional spending like nonprofit grants.