After more than two hours of public testimony and debate, the Kenai Peninsula Borough Assembly postponed a final vote Tuesday night on its proposed FY2026 budget, as tensions flared over how much the borough should contribute to local schools.
The $179.7 million budget, introduced as Ordinance 2025-19, includes a general fund contribution of $57.6 million to the Kenai Peninsula Borough School District — a $1.5 million increase over last year, but still $4.7 million short of the maximum local contribution allowed under state law.
A wave of public testimony — nearly all in favor of “funding to the cap” — pushed Assembly members to consider an amendment by Assembly member Brent Johnson that would boost the school district’s local funding to $62.4 million, matching the district’s formal request.
“Funding education to the cap is not about excess — it’s about survival,” said Erin Bellotte of Nikiski, a parent and former oil and gas executive. “Cutting resources like Quest in pursuit of test results only widens the gap between needs and capacity. If we want people to invest in our borough, we need to invest in ourselves.”
One speaker, however, did urge caution.
“I want to see results,” said John Core of Kasilof. “For the last 50 years I’ve watched education funding increase, but student outcomes don’t reflect it. We keep changing curriculums and spending money, but it’s not getting to the classroom.”
Mayor Peter Micciche, who introduced the budget, cautioned the Assembly against rushing to fund the schools to the cap — not because he opposes the amount, but because he fears it could undercut delicate negotiations in Juneau, where state education funding is at risk of being vetoed by Governor Mike Dunleavy.
“This isn’t about a dollar amount — it’s about strategy and timing,” Micciche said. “Our $4.7 million is the only remaining tool that might help secure a final vote or two in the state legislature for an override.”
Micciche said he has been personally lobbying lawmakers to preserve more than $11 million in state aid to the Kenai Peninsula School District, including increases to the Base Student Allocation and transportation funding. He warned that showing the borough had already closed its own budget gap could weaken the argument in Juneau that the state must act.
“I hate endangering the $11 million with $4.7 million too soon,” he said. “That additional local funding won’t even be spent until the district knows what happens at the state level. So why risk it now?”
According to the mayor, funding education to the cap long-term would likely double already-high property taxes within ten years.
He also pushed back on the idea that waiting reflected a lack of commitment to education. “We are absolutely huge supporters of education,” he said, noting that the borough contributes more to local schools than nearly any other borough in Alaska. “We believe in education. We support it. But this is about giving ourselves every last tool to fight for it at the state level.”
Assembly member Tyson Cox voiced strong support for funding to the cap immediately, regardless of what happens in Juneau.
“I’m prepared to fund to the cap tonight,” Cox said. “The Legislature went home. If the governor line-item vetoes anything, it’s not going to change what we need to do. Stability for hiring and programs matters now.”
Others, like Assembly member Cindy Ecklund, expressed anguish over deteriorating school conditions in their districts. She said her area hasn’t had music or choir in years, and is now losing its only art teacher. “I can’t face these people anymore,” she said. “We’re failing to meet the needs of our kids.”
Despite the urgency expressed by many in the room, the Assembly voted to postpone a final decision until its next meeting on June 3, where Johnson’s amendment and the full FY2026 budget are expected to be decided. Public testimony is now closed, though written comments are still being accepted.
Under Alaska law, boroughs must fund local schools to a set minimum, but may — at their discretion — contribute more. That additional funding often supports programs not guaranteed by the state, including extracurriculars, gifted education, staff positions, and facility maintenance.