Time to Testify; Education funding absent in SB22 operating budget work draft

Kenai Peninsula Borough School District
Contact: Pegge Erkeneff, 907.714.8888

News Release

Your opinion counts. Offer your thoughts about K-12 education funding to the Alaska Senate Finance Committee today

The current version of SB22 does not include a funding amount for education.

At the opening of public testimony on March 16, 2017, Co-chair Senator Lyman Hoffman clarified that education funding is not included in the current budget proposal because the Senate Finance committee, “contemplated that may be reduced by 5%, or a nickel on a dollar.”

 

Soldotna, March 16, 2017—Education funding is absent in the SB22 operating budget work draft. State aid for the education foundation formula will be added back in on Monday. Except, testimony on the budget is today and tomorrow, this week.

Will you please take two minutes to tell the Senate Finance Committee why you value funding education? Give your perspective in person, by telephone, via email*

If the state education funding is cut by 5 cents on every $1.00, it’s likely that 50 KPBSD teachers could be eliminated, and no longer be educating our youth in August, 2017. 

*Senate Finance Committee – SB22 Operating Budget – Statewide Public Testimony
Time limit is two minutes. Thursday, March 16:
9:00 – 10:30: Juneau
1:00 – 2:00: Glennallen, Seward, Homer
2:00 – 3:30: Statewide Offnet
3:30 – 5:00: Anchorage
5:00 – 6:00: Kenai, Kodiak, Dillingham
Written testimony can be submitted to finance.committee@akleg.gov

Superintendent Sean Dusek said today, “I’m very concerned about what the Senate is contemplating. Now is the time for people’s voices to be heard, and fully engaged in this process.”

Senate Finance Committee, 3.16.17

HOW-TO TESTIFY

Go to a local LIO office in Homer, Kenai, or Seward; call-in; or email your testimony.
General instructions

  • Public testimony limited to 2 minutes per testifier
  • If you are a member of a group with the same message, in the interest of time, please select a spokesperson to testify for the entire group
  • Identify yourself (first and last name), the community in which you live, and any relevant affiliations

By Phone (LIO offices in Homer, Kenai, and Seward, plus Off-Net):

  • Public members are strongly encouraged to testify from their Legislative Information Offices (LIOs), as there are limited Off-Net phone lines that are prioritized for those who are unable to physically reach their LIO;
  • If public members cannot reach their LIO, they may use the limited Off-Net phone system
  • 844-586-9085 (toll-free) or 907-586-9085
  • All Off-Net callers are required to hang up immediately after testifying in order to keep as many lines open as possible for other callers.

Written testimony:

KPBSD fiscal reality
KPBSD requests the Legislature maintain status quo funding, as proposed by Governor Walker.

The KPBSD FY18 proposed budget is calculated with a status quo funding for education. Status Quo funding projects a KPBSD deficit of ($ 3.4 million)*.
To balance the budget, KPBSD identified expenditure reductions of ($ 2.6 million), and the use of General Fund Balance (savings) of $ 872,358. This is prior to additional education funding cuts. The $2.6 million dollars in expenditure reductions includes 30.76 Full Time Equivalent (FTE) positions.
If the Alaska State legislature passes additional revenue cuts to state education funding, the KPBSD $3.4 million budget deficit will increase. And, state reductions can affect the Kenai Peninsula Borough maximum allowable contribution to KPBSD. This is the additional state funding impact to KPBSD:

  • 1% Reduction to BSA = ($ 1.05 million)

  • 3% Reduction to BSA = ($ 3.18 million)

  • 5% Reduction to BSA = ($ 5.29 million)

A 5% reduction in state funding also reduces the Borough’s ability to fund KPBSD by $1,217,554.
Perspective: Ten KPBSD teachers equates to one million dollars.
For several years, budget reductions have come through efficiencies, Pupil to Teacher Ratio (PTR) increases, and reduction of staff. Increased costs related to healthcare and serving our intensive needs students continue to rise.

The effects of these cuts have been kept as far away from the classroom as possible and most of the public do not realize these are already in effect. But, $8,550,530 has already been reduced in KPBSD since FY15.

  • FY15 Budget Reductions       ($1.25 million)
  • FY16 Budget Reductions          (1.37 million)
  • FY17 Budget Reductions          (3.44 million)
  • FY18 Budget Reductions          (2.48 million)

Total Budget Reductions:        ($ 8.55 million)
Further reductions to education funding in FY18 will increase the deficit, thus likely impact KPBSD staff, classroom instruction and support. Mr. Dave Jones, assistant superintendent of instructional support said, “Any perceived fat in the budget has been cut, and any further reductions will have to be personnel related.”
Links

The number one KPBSD Board of Education legislative priority is, “Provide sustained, reliable, and adequate education funding for Alaska’s students.”

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Education Funding and KPBSD

Please contact Conference Committee members* and legislators to voice your opinion about the proposed reductions to education funding.

The Senate Finance Committee amended HB 72, with a 4.1 percent reduction to the Foundation Formula educational funding on April 2, 2015. The impact to KPBSD is:

  • Reduction of state contribution to KPBSD: $4,238,432
  • Reduction of local (borough) contribution to KPBSD: $977,007

Governor Walker proposed an operating budget reduction of educational One-Time Funding in HB 72.The impact to KPBSD is:

  • Reduction of state contribution to KPBSD: $2,262,989
  • Reduction of local (borough) contribution to KPBSD: $520,487

Potential 2015-2016 revenue loss to KPBSD: $7,998,915

  • Total possible reduction in state funding to KPBSD: $6,501,421
  • Total possible reduction in local (borough) funding to KPBSD: $1,497,494

KPBSD understands that difficult financial decisions have to be made. We have confidence in our legislators and Speaker of the House Chenault, who have demonstrated support and advocacy for public education on the Kenai Peninsula.
Over 80 percent of our 2015-2016 budget is related to staff (salary and benefits). An $8 million reduction translates into the potential loss of up to 100 positions and vital programs.
KPBSD is committed to deliver a quality education to our students and provide stability for our staff and communities. These unanticipated reductions, this late in the budgeting process, compromises our ability to prepare our students for their future.
It is a constitutional responsibility of the State of Alaska to provide and maintain a public school system open to every child.
*The HB72 Conference Committee comprised of Senate and House Finance standing committee members was announced April 7, 2015. The members are: Representative Mark Neuman; Representative Les Gara; Representative Steve Thompson; Senator Pete Kelly; Senator Anna MacKinnon; and Senator Donny Olson. These legislators are tasked to work together on the operating budget revenues, expenditures, and proposed reductions for a final budget by the end of the legislative session on April 19, 2015.
 

Links

*HB72 Operating Budget Conference Committee Members

Kenai Peninsula Legislators

 
Connect with KPBSD on Facebook, twitter, our Mobile App, and website to follow updates. Contacts for Alaska legislators are noted in this announcement, and also on the Alaska State Legislature webpage.
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Questions: Contact Pegge Erkeneff, Communication Specialist
Kenai Peninsula Borough School District
907-714-8838
Communications@KPBSD.org
KPBSD 50 years logo

News Release: Proposed reductions to education funding in Alaska

Kenai Peninsula Borough School DistrictKPBSD 50 years logo Smallest  version
Contact: Pegge Erkeneff, 907.714.8888

News Release
Proposed reductions to education funding in Alaska

Soldotna, April 3, 2015—The Senate Finance Committee has amended HB 72, proposing a 4.1 percent reduction to the Foundation Formula educational funding. The reduction to the state contribution also impacts the maximum allowable contribution the Kenai Peninsula Borough (KPB) can contribute to the school district. KPBSD is analyzing the potential impact of this additional reduction in revenue to our 2015-2016 budget, together with our commitment to provide stability for our students, staff, and community within the changing fiscal climate. The impact of the unanticipated HB 72 reductions to the KPBSD budget are:
Senate Finance Committee proposed education Foundation Formula reduction of 4.1 percent:

  • Reduces state contribution to KPBSD: $4,238,432
  • Reduces local (borough) contribution to KPBSD: $977,007

Governor Walker’s proposed operating budget reduction of educational One-Time Funding:

  • Reduces state contribution to KPBSD: $2,262,989
  • Reduces local (borough) contribution to KPBSD: $520,487

Potential FY16 revenue loss: $7,998,915
Total possible reduction in state funding to KPBSD: $6,501,421
Total possible reduction in local (borough) funding to KPBSD: $1,497,494

“I’m very concerned that the legislature is proposing these further reductions to education funding, particularly this late in our process of budgeting and staffing for next year,” said Superintendent Sean Dusek. “KPBSD is committed to deliver a quality education to our students, and provide stability for our staff and communities. These reductions compromise our ability to prepare our students for their future. We will discuss the budget and potential ramifications with the school board during a previously scheduled worksession on Monday, April 6, 2015.”

Over 80 percent of the 2015-2016 budget is related to staff (salary and benefits). An $8 million reduction translates into the potential loss of up to 100 positions.
Links
HB 72
KPBSD and the Legislature webpage
The Alaska State Legislature webpage
April 3, 2015 News Release: Legislative Reductions to Education Funding
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