News release: Conference Committee votes to short fund education

Kenai Peninsula Borough School DistrictKPBSD logo 4c no tag SMALL
Contact: Pegge Erkeneff, 907.714.8888

News Release
Conference Committee short funds education

Soldotna, May 18, 2016—The Conference Committee on the Operating and Mental Health Budgets HB 256 and HB 257 has eliminated the equivalent of the $50 Base Student Allocation (BSA) funding to education that was required by previous legislative action, included in the FY17 Governor’s budget, as well as in both the current House and Senate budgets.

We anticipate a floor vote on this action at some point today.

KPBSD has worked on our FY17 budget in a rigorous and transparent manner since August of 2015, and made over $3 million in reductions. Today is the last day of school in our district. Our district has issued contracts that will not be withdrawn.

Last night, this new action that the Conference Committee took is less than transparent, did not allow for a public input process, and created new turmoil.

The KPBSD has acted in good faith throughout the legislative process. We did not initially include the statutory $50 BSA increase in our FY17 budget until the last possible school board meeting prior to the deadline to issue teaching contracts as required by law. The inclusion of this revenue was only made after extensive discussion with many members of the legislature and accepting the previous vote by both the Senate and the House of Representatives to include the equivalent of $50 BSA educational funding.

Short funding education in the amount proposed by the Conference Committee equates to the loss of the $50 BSA. For the KPBSD, the unanticipated impact at this late date to our 2016-2017 budget is:

Potential 2016-2017 revenue loss to KPBSD: $1,090,241

  • Total possible reduction in state funding to KPBSD: $886,375
  • Total possible reduction in corresponding local (borough) funding to KPBSD: $203,866

“KPBSD is committed to work with the legislature to best address the fiscal challenges in our state,” said Sean Dusek, superintendent. “We understand that there are very difficult decisions to be made. However, in order to plan for our staffing and the educational needs for K-12 education and our students, we need to be included early in the process, and not receive financial surprises such as this, so late in the legislative session.”


Alaska senators, representatives, and the Conference Committee member contacts

Kenai Peninsula Legislators:

Conference Committee on HB256 and HB257 members:



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