Assembly debates school funding

PALMER — The Mat-Su Borough Assembly discussed funding to the Mat-Su Borough School District at their regular meeting on August 17. Ordinance 21-079 proposed by Assemblyman George McKee and Borough Mayor Vern Halter would have changed the school district funding formula from a rate of 6.3 mills to 60 % of the areawide property tax rate.

The proposed ordinance was unpopular among educators, many of whom rose to speak in opposition to the ordinance. Of the six members of the public who spoke, five were against 21-079.

“We need stability and predictability in our budget so that we can make that kindergarten year the best possible kindergarten year, or that first grader or that seventh grader having the best year possible. Please honor the current ordinance as it is guaranteeing the local funding of 6.3 mills to the district so that we can provide consistency and sustainability to the students of the Mat-Su Borough,” said Academy Charter Principal Barbara Gerard. “We, you and I, must remain strong and protect our schools as champions of education. I strongly agree and encourage you to stand together and keep the ordinance as it is with 6.3 mills as a permanent and fair number for our kids.”

Borough Attorney Nick Spiropolous briefed the board on the conception of OR 21-079. Assemblyman McKee had expressed discontent with the school funding and considered a motion to reconsider the entire Borough budget. The borough taxable property taxes increased 5.67 % this year.

“What that ended up doing to actual revenues from a borough perspective is the property tax revenues available for the school district did increase by 5.67 % because that was the increase of the taxable assessed value. The property tax revenue available for the borough operations actually decreased by 3.44% because we had to have that offset to get to about 2 %, so by reducing that areawide mill rate and getting to an overall 2 % increase, the borough operations ended up taking a reduction of 3.44 when schools went up 5.67,” said Borough Manager Mike Brown. “What this intends to do is look for a solution that still provides predictability to the district which was one of the reasons that the code was put in place a few years ago. I think that is an important thing to retain but also to provide a more sustainable way forward.”

McKee argued that with Federal funding available, the School District reserve funds were too high.

“They are looking at getting $38 million more from covid over the next three years so when people tell me they’re short of money, I say garbage okay. The superintendent said if we cut from 6.3 to 60 % he’d have to close a school. Why doesn’t he just take some money out of his savings account to keep it open. There is no shortage of money in the school district,” said McKee. “I actually tried to come up with a formula where we did it performance based okay. By that I mean you take a level lets say 2019 grades four and eight and if their grades go up on it you give an additional $5 million, if their grades go down you cut the budget $5 million, but now no one wants to look at performance as a method in education.”

Halter recalled the day he received a phone call from former Governor Bill Walker, alerting Halter that the School Bond Debt Reimbursement contribution from the state would be decreased, which has also occurred under Governor Mike Dunleavy. Halter said that the reduction in SBDR funding changed the perspective.

“When we came up with the 6.3 mills it was needed because school funding was so haphazard. It seemed to me like the school district had to come in here and almost beg for money and it seemed like it was time to rewrite that ordinance and they did and it passed and it worked,” said Halter. “I do agree with this ordinance. I’ll tell you that right now it does give the manager some flexibility in setting the budget and I hope-and this is my biggest hope- I hope the state legislature will start refunding the school bond debt which will put us in a situation where the 6.3 mills could be honored.”

Numerous members of the Assembly scoffed at the plan. Many expressed the wish not to cut school funding.

“This is an exceptionally bad idea and I’d like to explain a couple of reasons why. If we tie the school funding to the overall property tax rate then you’re going to put a pretty powerful constituency behind supporting a higher property tax rate. We will I think ,in all likelihood never have an areawide mill rate that is as low as it is right now again after that. Additionally, there is something to be said about funding certainty to organizations,” said Assemblyman Jesse Sumner. “We have a tax cap, it says 6.3. I think we’ve had that for three, four years. It’s not a perfect situation but I think that this would make things substantially worse.”

Halter clarified with Spiropolous that the Assembly did have the power to reduce the dollar amount appropriated to the school district although the code states that the funding must be levied at 6.3 mills.

“It really doesn’t matter what the Federal government gives, or the state government gives to our school district. Schooling our children is a local responsibility and that’s our job. That is our job period, straight up,” said Assemblyman Tim Hale.

The vote on 21-079 failed with only McKee and Assemblyman Mokie Tew voting in favor.

“I don’t think anybody that I know would want to cut our schools pay or funds but I also don’t think that I know anybody in our borough or district who would say that we want to see the school district have 30, 50, $ 80 million in savings and we are headed in that direction,” said Assemblyman Rob Yundt. “There’s a valid reasons to look at both sides of this argument or debate I should say. I just want to make it known that I really support our teachers.”