On Tuesday night, May 7, the Kenai Peninsula Borough Assembly discussed the minimum amount of money it will spend on borough schools in the upcoming fiscal year.
Borough Mayor Peter Micciche proposed approximately $56.2 million dollars, which is two million dollars less than what the Kenai Peninsula Borough School District requested last month.
However, according to the KPBSD annual budget, last year’s number was $54,753,114 for FY24.
According the Peninsula Clarion, The proposed $56.2 million contribution was previously the maximum amount of money the borough could give the school district for fiscal year 2025. Kenai Peninsula Borough Finance Director Brandi Harbaugh told assembly members Tuesday that a change in how that contribution is calculated bumped the maximum value up to $58.2 million. According to Micciche, the proposed $56.2 million would be split into different sections. $41 million would be used for school operations, $15.3 million for building maintenance, insurance, and financial audits, $4 million for capital projects for school facilities, and $5 million for debt service for school bonds.
“The bottom line is the state has to meet their constitutional requirement to fund education, and we can’t cover the gap no matter what if they don’t — it’s simply not possible,” Micciche said. “Eroding into what they should be paying simply not only doesn’t make sense, but it’s unaffordable to our own residents. As they continue to shift more and more costs to the local governments, it’s time to stand up,” said Micciche during an assembly finance committee meeting.
During the regular assembly meeting, several representatives from the school district stood to voice their appreciation of the budget floor. “I appreciate that the floor is set at this [$56.2M], and I think it is a very financially prudent decision by the mayor and by the assembly to start at this point. I completely understand it, and I know that if we’re in a bind and there [are] additional needs that we [have], I feel like we can come to you and request that,” said school board president Zen Kelly.
Public hearings on the budget will be held on May 21 and June 4 in the Borough Assembly Chambers.
To learn more about the KPB’s proposed budget, click here.