As Alaska’s school districts await a final state budget, uncertainty looms over the future of many classified staff positions in the Kenai Peninsula Borough School District. Superintendent Clayton Holland says that while no employees have been formally laid off, a lack of state and borough funding commitments has stalled renewal notices, leaving many in a state of limbo.
“We still don’t have a finalized budget from the state, and we haven’t fully received the borough’s contribution either,” Holland said. “Because of that, the standard personnel action forms that notify classified staff of their summer and fall schedules haven’t gone out yet.”
Those affected include pool and theater workers, paraprofessionals, custodians, and secretaries—many of whom rely on these summer confirmations to maintain income and health insurance.
Summer Pool Operations Still Planned
Despite the budget delay, the district is taking action to keep key public facilities—particularly community pools—open through the summer. Holland noted that summer pool use generates significant revenue, like Seward’s pool, Skyview, which hosts therapy sessions and swim lessons, and Kenai’s pool, which supports helicopter crash training.
To make this possible, the district is planning to use estimated summer revenue along with reserve funds from each pool’s “710 account.” Holland also acknowledged that some smaller facilities, such as those in Seldovia and Ninilchik, face additional hurdles but are exploring community-led solutions.
“Ninilchik recently received a major private donation to help keep their pool open,” Holland said, “and Seldovia’s city leadership is looking at ways to generate funding—possibly through their mill rate adjustment.”
No Layoffs, But No Promises Yet
Holland emphasized that while employees have not been laid off or “pink-slipped,” they also haven’t been renewed. “For classified staff, it’s not a contract but a personnel action form. That’s what lets them know what their job is for the coming year,” he explained. “Because we haven’t received a final budget, those forms haven’t gone out.”
Some employees who were non-retained—including certified teachers—have already transitioned to open roles elsewhere in the district. But until June 19, when Governor Mike Dunleavy must take action on the budget, many decisions remain paused.
June 19 Decision Could Shape Entire School Year
The district’s budget is currently built around a base student allocation increase of $700 per student—a slight increase from the prior year. However, if the governor line-item vetoes that funding, major cuts could follow. Holland said the district has prepared multiple contingency plans, including one based on an increase of $680 per student, and has staffed certified positions at a more conservative $350 per student level to avoid overextending.
“If we get the cut, we’re going to have to make decisions fast,” Holland said. “That could include moving high school and middle school teachers to elementary levels, canceling planned facility configurations, and re-evaluating programs across the board.”
School Closures, Sports, and Program Impacts Still Possible
In the event of a significant veto, the district may need to revisit earlier discussions on school closures and staffing reallocations. Schools like Sterling Elementary and Nikolaevsk have already been part of closure considerations, and other configurations could resurface if needed.
Programs like school theater and athletics are also under review, though Holland said the district is committed to keeping them running where possible. Increases to participation fees and community fundraising may be needed to sustain assistant coaching positions and sports offerings.
“We’re not looking at cutting a particular sport,” Holland said. “But if the budget doesn’t come through, there may be more burden on communities to support them.”
Bottom Line: Uncertainty Is the Challenge
Perhaps the greatest challenge, Holland said, is the uncertainty itself—for staff, families, and the district’s ability to plan.
“It’s the not knowing that’s hardest,” he said. “You don’t know if you have a job, you don’t know if you’ll have insurance. And if you’re a parent trying to plan, or a staff member waiting to hear back, it’s a really hard position to be in.”
The district will hold a committee meeting on June 26 to review next steps, depending on what the governor decides. Until then, the Kenai Peninsula Borough School District—like many others in Alaska—continues to wait.
