It helps, but it doesn't solve the problem. The latest round of federal relief aid is equal to about half of this year's school budget deficit.
The $900 billion relief bill passed by Congress and signed into law by the president at the end of December included $54 billion to be distributed nationwide to help K-12 schools reopen and assist with additional expenses and lost revenues due to the pandemic.
Of that $54 billion, the Alaska Department of Education received almost $144 million that it has allocated to 55 school districts statewide.
Wrangell's share of the money is $284,181, according to the department.
That is equal to about half of the Wrangell district's estimated budget deficit of $578,000 for the 2020-2021 school year, said Leeann Wiggins, school district business manager.
Wrangell's budget gap is due to a steep decline in enrollment as parents signed up their children for correspondence programs offered by other school districts or pulled their children from the classroom for homeschooling.
State funding for school operating expenses is based on student attendance taken every fall. That per-student calculation - known as the foundation funding formula - hit Wrangell hard this year. The district counted about 200 students for the current school year, down from its projected enrollment of 259, and an even steeper drop from its historical average of closer to 300 students.
State foundation funding comprised about two-thirds of the school district's total budget of almost $5.7 million for this year.
The estimated $578,000 budget gap this school year factors in a provision in the state funding formula that eases the drop due to declining enrollment, Wiggins said Monday. The so-called hold-harmless provision helps to shield districts from a steep one-year drop in state money.
The additional federal aid will help but not fix the problem, Wiggins said.
One advantage over past COVID-19 relief aid is that this latest round of federal assistance allows much more discretion by local school districts. "This is a very flexible one," she said of the aid.
The money can be spent on school improvements "to enable operation of schools to reduce risk of virus transmission and exposure to environmental health hazards, and to support student health needs," according to the state Education Department.
The federal aid also can be used to plug budget holes left by declining enrollment, the state said. Money not used this school year can carry over into the next two school years.
Though it's possible the state could also decide to help out beleaguered schools - and Wrangell has asked for help - the district could be looking to fill the budget gap on its own. "We'll probably have to pull out of our reserves," Wiggins said. The district's reserves stood at about $1.3 million as of this week, she said.
The school board is scheduled to meet at 6:30 p.m. Monday, and Wiggins said she expects the federal aid will come up as the board discusses its plans for next year's budget.
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