North Slope school board to vote Wednesday on $2 million budget increase

The North Slope Borough School District Board of Education votes Wednesday, Nov. 11, on a budget revision raising this year's general fund expenditures and transfers by about $2.1 million, to $94 million.

The revision also plans a $7.7 million draw on the district's savings, known as fund balance. That is down from $9 million in the budget adopted in May. The district's draft audit puts the current balance at $5.57 million, more than $2 million short of the planned draw. Neither the revision memo nor the draft audit explains how that gap would be covered.

Director of Finance Megan Williams wrote the revision memo Oct. 28. Superintendent Caitlin Santos signed it two days later. The $91.95 million May budget assumed 8% of positions would be vacant. The revision drops that assumption and pays for filled positions instead. Certified classroom salaries alone rise $1.5 million. It budgets average daily membership at 1,706, down 59 from FY26.

Revenue rises $3.4 million, to $86.3 million, from one-time state funding and energy relief, the memo says. "The additional $3,387,447 in State revenue, School District Fund Balance, and additional Borough contribution will be used to cover this expenditure plan," Williams wrote. The memo's revenue table leaves the borough's appropriation unchanged at $38.8 million.

The draft audit goes before the board ahead of the vote. It shows the general fund balance fell from $17.2 million to $5.57 million in the year that ended June 30. After exempting federal impact aid, prepaid items, encumbrances and inventory, $654,783 remains subject to the state's 10% limit, equal to 0.69% of last year's spending. The auditor's unsigned draft letter says, "We did not identify any misstatements."

For last year, the memo shows revenue of $84.8 million, a borough appropriation of $38.8 million and a $9.9 million draw on reserves. The draft audit instead shows $87.3 million, $41.3 million and an $11.6 million drop. Neither document explains the difference.

The district counted 1,544 K-12 students in October, down from 1,605, according to its enrollment report. Barrow High School fell to 195 students from 224. Teacher retention held at 70% in each of the last two school years, down from 75% in 2017-18, according to the district's recruitment update. As of Oct. 4, Fred Ipalook Elementary had five open teaching positions and Eben Hopson Middle School had six.

The board meets at the Wildbirch Hotel in Anchorage and by Zoom, with a 9 am work session and a 1 pm regular meeting.