The end of federal pandemic assistance and years of flat state funding have hurt the school district’s ability to cover its costs. The borough assembly has stepped up for the second year in a row to help close the budget gap.
At its meeting April 25, the assembly unanimously approved a $1.6 million contribution to Wrangell Public Schools, which is the amount Superintendent Bill Burr said the district needs to essentially balance its budget.
The assembly approved$700,000 from sales tax funds and $900,000 from the federal Secure Rural Schools fund.
Along with borough, state and federal funds, the school district expects to draw $53,000 from reserves to cover its almost $5.1 million spending plan for the 2023-2024 school year.
To a large extent, school district finances for next year will depend on efforts underway in the Legislature to increase state funding for K-12 education. State foundation formula funding of $3.073 million is expected to cover about 60% of the Wrangell district’s operating budget for 2023-2024, before any potential increase in state aid.
Borough officials initially proposed a $1,536,484 contribution to the school district, which is the maximum amount they can provide without using federal pass-through money. This was slightly less than the $1.6 million the district had budgeted. Assemblymember David Powell moved to amend the motion to provide the full $1.6 million, which is the same as the borough is providing this year.
Using federal funds to supplement sales tax revenues going to the schools is common for the borough. “Our (Secure Rural Schools) fund is in a sense, an extension to the school’s fund balance, at least in precedent,” explained Finance Director Mason Villarma. “85% is spent on the school budget, at least.”
The district budgeted for 263 students in the next school year, about the same as this year.
Burr also informed the assembly of an issue that had come to his attention since the school board and assembly budget meeting in March and asked that $240,00 of Secure Rural Schools funds be held in reserve in case the district needs them.
“We have an influx of early education students” with special needs, he explained in a subsequent interview, and the district needs to hire an additional teacher to support them. School districts receive more money from the state for students with special needs, but this money is approved on a student-by-student basis and the district won’t know the amount of state funding until after they hire the teacher.
“We’re adding an early elementary instructor to work with those students,” said Burr. “That may be offset depending on funding. … We need them in the fall, but we may not get the funding for it until January. Regardless, we have to meet the needs of these students whether the state agrees with us or not.”
If state funding increases, the $240,000 may not be necessary. But the district isn’t banking on getting any extra money from the state this year.
Different legislative proposals to boost state funding could generate between $300,000 and $600,000 additional for Wrangell next year. A decision is not expected much before the Legislature’s adjournment deadline of May 17.
“We may be able to make it on our own,” said Burr. “That’s what we’re planning, but we can’t guarantee it.”
He and School Board President David Wilson stressed the district’s importance to the community before the assembly April 25.
“We want our school district to continue supporting the education to all our students with options and clarity that they’re going to make it beyond their K-12 education,” said Burr.
“Without funding … the teaching staff has decreased, the electives have decreased, we’re still making staffing cuts and we can’t cut anymore,” he said. “Communities are in tough straits in Alaska. A school closes and the town is reduced substantially. We want our kids to not only make it thought school but to excel.”
“We’ve been suffering a loss in our district for well over a decade,” added Wilson.
“We’ve cut back on our programs, loss of courses, loss of options, loss of staff. … Families, they’ll be leaving Wrangell because they’ll be seeking a place that can offer more to their children.”
As declining oil revenue squeezes Alaska’s state budget, legislators are deciding between fulfilling campaign promises of a large Permanent Fund dividend and sufficiently funding schools, Rep. Dan Ortiz explained to the assembly. In the fiscal year 2013, the state spent more money on education than it did on the PFD, but now the opposite is true. Years of flat education funding have cut down on districts’ purchasing power, he said.
“Let’s say $5,680 (state funding per student) back in FY12, that was worth a heck of a lot more than the $5,960 in FY23,” Ortiz said. “That’s the reality of the impact of inflation on the ability of the school district to meet its obligations.” He anticipates that the state will send some additional money to schools this year, but likely in the form of a one-time payout, not an increase to the base student allocation, which determines how much money schools get per student.
“I heard loud and clear from the Wrangell School District … that they do need an increase to the base student allocation,” he said.
Reader Comments(0)