As the Kenai Peninsula Borough Assembly continues work on its FY2026 borough-wide budget, the question of how much local money to allocate for public education remains a central issue. The district has requested the borough fund KPBSD to the maximum amount allowed by state law—known as “the cap”—but the administration has proposed a lower figure, citing long-term fiscal concerns.
The borough’s proposed contribution, submitted as part of Resolution 2025-021 during Tuesday night’s borough assembly meeting, would allocate $57.6 million in local support for schools. That’s about $4.7 million short of the cap amount of $62.3 million. The proposed funding includes both direct financial support and in-kind services like maintenance, utilities, and custodial services.
Borough Mayor Peter Micciche has been vocal about the need to balance education funding with the borough’s broader fiscal outlook. In a recent appearance on KSRM’s Soundoff, the mayor noted that the borough is already one of the most generous local funders of education in the state and warned that consistently funding to the cap without structural reform at the state level could shift an unsustainable share of the burden to local taxpayers.
“We’re doing our part. We are the most generous [school district]. We support education,” the mayor said. “If we funded to the cap, by next year the little Kenai Peninsula will pay more than the state does for education…if we were to only fund at the minimum, we would pay more than the state by 2034 or 2035, depending on how things go.”
Micciche emphasized that the Kenai Peninsula Borough has historically prioritized education funding, noting that approximately 67% of all borough expenditures go toward schools. He pointed out that while education is funded through a dedicated sales tax, the borough also contributes a significant portion of property tax revenue—currently about 38%—since sales tax alone no longer covers the local contribution. Additionally, much of the borough’s federal funding is also directed toward education. Micciche framed this as evidence that the borough remains generous and committed to supporting schools.
He emphasized the importance of pushing the state to do its part, while cautioning against burning through borough savings to fill gaps left by flat state funding.
At the Assembly meeting, several members of the public spoke in support of fully funding the district’s request. Teachers, parents, and community members cited growing concerns about program reductions, staffing uncertainty, and student outcomes.
Dr. Paul Marks, a teacher at Soldotna High School, asked the Assembly to lean on the advice of those closest to the classroom—including Superintendent Clayton Holland and the district’s leadership team.
“This is a complex issue that takes understanding,” Marks said. “Not groups of armchair quarterbacks who are going to second-guess experts that are in the field. You’re in a tough spot. I ask that you please give us the funding that the experts in this have asked for.”
Assembly member Tyson Cox also expressed his support for funding to the cap and emphasized the urgency of the timeline.
“I was prepared and still would be prepared to fund to the cap. I would do it tonight,” Cox said. “Because the sooner that we can get some of those funds to our district, the less likely it is that some of those jobs go away and we lose people.”
Two competing amendments were introduced at the meeting. One, sponsored by Assembly Member Brent Johnson, would immediately raise the borough’s contribution to the full cap amount requested by KPBSD. The other, from Assembly Vice President Kelly Cooper and Assembly Member Leslie Morton, would set the proposed amount as a temporary floor and revisit the final funding level as part of the overall budget, though the amount could still be increased through the budget process, not to exceed the cap.