The school board is seeking a more balanced partnership before committing to a three-year agreement with the assembly covering borough funding for the schools and other financial issues.

During a joint work session on April 27, concerns were expressed that the proposed memorandum of understanding (MOU) was drafted by borough officials without board input and contains language that feels one-sided to the board.

Though the assembly unanimously approved the document on April 14, the school board has paused the process to seek clarification on a couple key points.

The City Hall-drafted agreement said the borough would strive to provide as much funding for the schools as allowed under state law — which has not always happened over the years — and in return the borough wanted more communication and new policies from the school district on fiscal matters.

Board President John DeRuyter emphasized the need for more regular and open communication, particularly regarding a proposed requirement for the district to provide an annual list of major maintenance projects costing less than $250,000.

“The assembly absolutely should always know what’s going on with the schools,” DeRuyter said. However, he argued that the agreement must also hold the assembly accountable for its side of the facility responsibilities.

“The MOU wants maintenance needs and priorities, but the assembly should acknowledge and give a timeline for when projects will be done. We need to know that stuff so we can adjust quickly and appropriately.”

DeRuyter noted that major repairs must frequently be scheduled during the summer to avoid disrupting students. He explained that without a firm timeline from the borough, which owns the school buildings and is responsible for major upgrades, the district struggles to plan effectively.

Schools Superintendent Joshua Garrett added that the agreement should present a more “even playing field” and suggested removing “if/then” language that implies conditions are being tied to borough funding for the school district.

Mayor Patty Gilbert suggested that revisions could be made and reviewed jointly to address these concerns.

Schools Business Manager Kristy Andrew presented the assembly with the district’s budget for the 2026-2027 school year. It shows revenues of $5.596 million, with almost 64% from the state and 32% from the borough.

The budget shows expenses at $6.083 million, with a draw of $563,000 from reserves to cover the gap, leaving an estimated $438,000 in the operating reserves account as of June 30, 2027.

The district maintains a separate reserves account for maintenance and repairs.

Garrett said disciplined spending has extended the life of the operating reserves. However, he warned that the district is still maintaining a defensive fiscal posture due to ongoing uncertainty in state funding.

“The underlying issue remains uncertainty,” Garrett said. He pointed out that the district must guess at its revenue because the Legislature and governor do not decide on state funding for public education until after school districts are required to submit their budgets to their municipal assembly.

The Wrangell district is required in municipal code to send its budget and funding request to the assembly by May 1 each year. The Legislature is not required to finish its budget work and adjourn until the third week of May.

Garrett argued that the source of the problem is in Juneau and that the state needs to increase its funding, in particular tying it to inflation.

“Predictable and sustainable funding is essential if districts are to move beyond maintaining operations and begin building for the future,” he said.