Assembly takes first peek at school district budget

PALMER -- During Tuesday's joint Matanuska-Susitna Borough Assembly and school board meeting, assembly members were presented with an early warning of what the board may be requesting in terms of funding for FY05.

While the assembly does not require the official Mat-Su Borough School District budget be presented until April 1, the board felt it was necessary to explain to the assembly what revenue from the state was looking like so far, and therefore what revenue the board hoped to receive from the assembly.

"There's been consideration that something will come out of the Legislature -- at this point we don't know what," said assistant superintendent of finance Jack Sherman.

In a presentation to the assembly, Sherman discussed estimates of the funding the district may receive if the state legislation regarding the fiscal year 2005 school budget remained the same, and how much funding the district would receive if Senate Bill 1, which ups the per-pupil allocation by $407, became law.

Based on the district's projected student enrollment of 14,393, the state would currently appropriate $71.9 million to the district. Based on that number, the maximum the borough could contribute under state law would be $33.9 million. If SB 1 passed, the state would fund $80.3 million and the borough could contribute $35.9 million.

Because the borough uses a different formula to determine the local cap on funding, the borough manager can only suggest funding $33.1 million to the district, regardless of what the state funding is. With a $2.7 million difference if SB 1 becomes law, the board sought to alert the assembly to this difference. For the borough assembly to fund to the state maximum, the assembly would have to make an amendment to borough code.

"What we are conveying this evening is that as we move along the budget process, what we will be presenting for your consideration will be in the area of one of these two bills," said school board president Mike Chmielewski, referring to both SB 1 and House Bill 233, which both propose $400-plus increases to the per student allocation. "By doing so the Legislature would effectively change the amount the borough could provide."

Chmielewski went on to say that if one of the two proposed bills were to become law, the $8 million proposed cuts the district would have to make in order to balance the budget would no longer be necessary.

"My understanding is that the Legislature is willing to go quite a way this year, providing a way that is stopping the slide and starting to slowly inch our way to the other side," Chmielewski said.

Assembly members chimed in with cheers for the work the district and board have already done to push legislation, and voiced hopes for more help from the state.

"Hopefully the Legislature will get their arms around the issue so that we don't have to do this on an annual basis," said Assembly Member Bill Allen.

Members also thanked the local support from Valley residents.

"I think we should thank Valley Voices [for Children] for their efforts -- that's why we are here now," said Assembly Member Mary Kvalheim.

Borough Mayor Tim Anderson thanked the board for updating the assembly on the current budget outlook, and promised to continue working with the board on funding issues.

"We pledge to work with you on the budget," Anderson said. "This is the single most important issue in the Valley now."

Contact Jen Ransom at jen.ransom@frontiersman.com.