Mat-Su school board continues to examine budget

PALMER — The Mat-Su Borough School District Board of Education unanimously adopted a number of resolutions at its regular meeting Wednesday geared at helping the district balance an anticipated $11 million shortfall for the 2017-2018 budget. Among them were a proposed borough-wide education sales tax, increased meal prices, and a requested increase in borough funding for the upcoming school year.

Some of the items have set dollar amounts of expected revenue generation, one does not—the borough-wide sales tax to supplement the state's current per pupil reimbursement levels. Currently, the borough's district funding levels are at roughly $55.5 million or 78 percent of the state's maximum allowable amount. The resolution states the Mat-Su could appropriate more than $16 million and remain below the cap.

In passing the resolution, the board noted the exact sale tax percentage and revenue estimates require additional information from the borough. The resolution stipulated that its purpose was "...to introduce and support the concept of increasing and diversifying local funding sources to help sustain essential programs and services..."

If the borough assembly approves the resolution, it would still have to go to the Mat-Su's voters for final approval. Board member Ole Larson asked about a ballot timeline. District Superintendent Gene Stone said it was his understanding that the assembly has until the end of its fiscal year to make a decision. If approved by the voters this fall, the sales tax would go into effect on Jan. 1, 2018.

Concerning borough funding levels, the district is seeking an additional $3.35 million over the current school year. If the borough approves the district's request, just over $59 million would be earmarked for education.

Trustees approved across-the-board meal price increases. Starting next school year, elementary breakfasts will go up a quarter while middle and high school prices increase 50 cents. Elementary lunch prices will be upped 25 cents and middle school and high school students will pay an additional 65 cents.

Borough ordinance stipulates the district to have a preliminary budget to the assembly by April 1. The board has until June 30 to approve a balanced budget. In between the two dates, a number of public hearings on the budget have been planned.

The meeting began with remarks from Karen Salisbury, president of the district's classified employee association, which represents, among other employees, district custodians. The district is considering outsourcing custodial services and received three private contractor bids. Salisbury noted one of the opened bid packets did not contain all required items, the company's actual bid amount, or cost proposal.

The affected company's officials, present at the bid opening, asked if they could submit the bid amount and were told ‘no,’ Salisbury said. She said two days later, she was informed that the company had indeed been allowed to submit a cost proposal which would be considered. Salisbury asked whether the district could do this and upon checking with the other bidders, found they were not told the late consideration would be allowed. She asked if board members were informed.

"From the beginning, we have questioned whether outsourcing is the best policy decision for the district,” Salisbury told board members. “And now we can't help but question whether this will be a fair and transparent process for them to get there.”

District Assistant Superintendent Luke Fulp and Executive Director Amy Spargo reviewed last year's legislative bills as it relates to schools as well as pending legislation under consideration in Juneau. The most important is HB 57, which will be brought forth March 27 for reconsideration. The bill restores full funding to $5,930 per student and full funding on the pupil transportation program. Legislators are considering a 5 percent funding reduction on per pupil reimbursement to help offset the state's budget deficit.

Stone testified before the House on March 2. Later in the meeting, trustee Larson noted that even if passed, the term "full-funding" is a misnomer. If approved in Juneau, the state would reimburse districts at the same amount as the present school year. Larson noted that the amount does not take in inflation, salary and health care cost increases, and similar items.

In addition to budget issues, there were a number of other action items approved by the board. Among them was a school out-of-country travel request; and contract extensions for tenured teachers, school administrators, central office administrators, non-tenured related service providers and a contract amendment.

A group of 20 Mat-Su Central students will depart for 10-day trip to England and Scotland beginning May 22 picking up all associated costs. After approving the request, Larson suggested the students share thoughts and what they learned on the trip with the school board at an upcoming meeting.

2017-2018 contracts were OK’d for 890 full-time equivalent (FTE) tenured teachers, 65 FTE administrators, 15.25 FTE central office administrators, and 29 FTE non-tenured non-tenured teachers. Trustees also approved amending the snow removal contract with Ficklin Construction. Because of this year's heavy snowfall, an additional $106,000 was requested to cover the "per occurrence" costs involved.

The next regular board meeting is slated for April 5 at 6 p.m. at the administrative offices in Palmer.