School district may lose $1.1M from Walker’s vetoes

  • By Kelly Sullivan
  • Thursday, June 30, 2016 9:31pm
  • News

Gov. Bill Walker’s more than $58 million worth of vetoes to K-12 education may reverberate in the Kenai Peninsula Borough School District.

Administrators will further review potential fallout, but expect a loss of nearly $1.1 million from transportation grant and foundation formula funding, according to Pegge Erkeneff, school district liaison.

“…Fortunately, we have a Board of Education who planned for the possibility of such a change and we can address such late reductions through the use of fund balance, without a large negative impact to our instructional programs,” said Sean Dusek, school district superintendent. “…While use of fund balance allows us to move forward this time, it also reduces our future ability to respond without experiencing negative instructional impacts.”

The last minute reductions add to an existing nearly $1 million projected deficit for the 2016-2017 school year, after the board already approved roughly $4 million cuts in services for the next school year from current operating levels in April. Had the Kenai Peninsula Borough Assembly funded the maximum allowable contribution to education this year the school district’s deficit would have sat at more than $200,000.

The school district is also currently revising operations of pupil transportation services, which will run a deficit by 2019 at the earliest if the state does not include inflationary funding in future annual allocations.

Walker made reductions in the areas of school debt reimbursements, rural school construction, and one-time funding that existed outside the foundation formula for state aid to school districts in addition to foundation and transportation funding.

Assistant Superintendent Dave Jones said he had not been aware of the state aid funding during the legislative session.

“KPBSD had been scheduled to receive $331,134 in one-time funds,” Jones said. “Because we were not aware of the funds, we never took any actions to budget them. As such, we will not now need to take any action to remove them.”

Jones said since the legislature can make changes once the next special session begins July 11, the school district will plan on using fund balance to cover any losses, but will wait to take any action until “final numbers are known.”

Dusek said he plans to work with Walker and the legislature in “hopes of avoiding similar future reductions so late in the process.”


Reach Kelly Sullivan at

More in News

The Alaska State Capitol is seen on Wednesday, April 6, 2022. (Peter Segall / Juneau Empire)
Legislature modernizes 40-year-old definition of consent in sexual assault cases

‘Alaska took a gargantuan step forward in updating our laws,’ says deputy attorney general

Project stakeholders cut a ribbon at the Nikiski Shelter of Hope on Friday, May 20, 2022, in Nikiski, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Stakeholders celebrate opening of Nikiski shelter

The shelter officially opened last December

Peter Segall / Juneau Empire
Gov. Mike Dunleavy speaks with reporters Thursday about the state’s budget at the Alaska State Capitol. Dunleavy said lawmakers had sent a complete budget, and that there was no need for a special session.
Dunleavy: No need for special session

Governor calls budget “complete”

A magnet promoting the Alaska Reads Act released sits atop a stack of Alaskan-authored and Alaska-centric books. Lawmakers passed the Alaska Reads Act on the last day of the legislative session, but several members of the House of Representatives were upset with the bill, and the way it was passed. (Ben Hohenstatt / Juneau Empire)
In last-minute move, Legislature passes early reading overhaul

Rural lawmakers push back on Alaska Reads Act

Graduates wait to receive diplomas during Connections Homeschool’s commencement ceremony on Thursday, May 19, 2022, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Connections honors more than 100 graduates

The home-school program held a ceremony Thursday in Soldotna

Alaska Senate President Peter Micciche, left, and Senate Minority Leader Tom Begich, right, meet with reporters in Micciche’s office in the early morning hours of Thursday, May 19, 2022, in Juneau, Alaska, after the Legislature ended its regular session. Micciche, a Republican, and Begich, a Democrat, discussed their working relationship, as well as well as parts of the session they were either pleased with or disappointed with. (AP Photo/Becky Bohrer)
After House balks at bigger figure, budget OK’d with $3,200 payout per Alaskan

Budget finishes as second-largest in state history by one measure, but Dunleavy could make cuts

Loren Reese, principal at Kenai Alternative High School, gives Oliver Larrow the Mr. Fix It award Wednesday, May 18, 2022, at Kenai Alternative High School in Kenai, Alaska. (Photo by Jeff Helminiak/Peninsula Clarion)
Kenai Alternative graduates 22, says goodbye to principal

The ceremony included special awards customized for students

Graduates throw their caps into the air at the end of Soldotna High School’s commencement ceremony on Wednesday, May 18, 2022, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
‘We never fell down’

Soldotna High School honors more than 100 graduates

Brandi Harbaugh gives a presentation during a joint work session on Tuesday, March 2, 2021, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Mill rate decrease, max school funding included in proposed borough budget

The final document is subject to approval by the Kenai Peninsula Borough Assembly

Most Read