Facing a $17 million deficit, the Kenai Peninsula Borough School District (KPBSD) has adopted a budget that includes significant cuts and the closure of two schools. The budget, approved during a special board meeting, assumes a $680 increase in per-student funding from the state—a figure that remains uncertain following recent legislative actions.
Sterling Elementary and Nikolaevsk School are slated for closure. Additionally, the district plans to eliminate positions for elementary and small school counselors, Quest teachers, student support liaisons, and pool managers. The Kenai Peninsula Middle College is being eliminated, and teacher-to-student ratios will increase across the board. Extracurricular stipends are also being sharply reduced.
Board President Zen Kelly described the budget as a “working document,” indicating that adjustments will be made if additional funding becomes available. However, under state law, the district must submit a balanced budget to the borough by May 1, regardless of finalized funding levels.
Community members packed the board chambers during the meeting, many wearing school colors and advocating for Sterling Elementary, which was added to the closure list just a day earlier. One teacher highlighted the impact on young students who would face long bus rides if the school closes, while others warned that families might leave the peninsula or switch to homeschooling.
The district’s financial challenges are compounded by recent developments in the Alaska Legislature. Lawmakers recently failed to override Governor Mike Dunleavy’s veto of House Bill 69, which would have increased the Base Student Allocation (BSA) by $1,000 per student. The override attempt fell short by seven votes, with a final tally of 33-27, below the 40 votes required.
In response, the Senate Finance Committee has proposed a $700 BSA increase by amending a separate bill originally focused on regulating student cell phone use in schools. This move comes amid ongoing negotiations and uncertainty about the state’s fiscal outlook.
Governor Dunleavy has introduced his own education funding proposal, House Bill 204, which includes a $560 BSA increase and additional funds for specific programs, emphasizing policy changes related to charter schools and homeschool programs. The bill is currently assigned to the House Finance Committee but has not yet been scheduled for a hearing.
As the legislative session progresses, the district’s budget remains subject to change based on the outcome of these funding proposals. For more details and the full budget document, visit the KPBSD BoardDocs website.