Mat-Su School Board discusses preliminary $22.5M deficit budget

Last week, Matanuska-Susitna Borough School District (MSBSD) Superintendent Dr. Randy Trani presented his proposed budget to the school board. While the proposal to close Glacier View, Meadow Lakes, and Larson Elementary schools has dominated recent headlines, the district is also considering several other significant budget reductions to address a projected $22.5 million shortfall for the 2026–2027 school year. Beyond the school closures, the proposed plan includes substantial staff cuts, notably a reduction in school nursing positions, middle and high school librarians, increases to activity fees, as well as increasing activity fees.

Dr. Trani started the meeting by presenting a summary of the 2027 school budge funding, telling the school board and attendees “the Mat-Su school district does not have a spending problem; we have a revenue problem.”

He reported a projected $6 million budget shortfall, driven by declining state funding, flat borough appropriations, and rising property valuations. To bridge this gap, Dr. Trani will recommend that the board request nearly $3.3 million from the Borough. He added that declining enrollment has further complicated the funding formula, noting that, generally, larger schools yield lower revenue per student, necessitating a closer examination of school size adjustments.

Deputy Superintendent Katie Gardner advised board members that the preliminary budget represents a snapshot, utilizing estimates to project a potential deficit or surplus.

Gardner noted that the superintendent’s proposed budget presents a balanced plan for school board approval, matching projected revenue with expenditures. However, she emphasized that because the committee cannot control state/federal aid or tax income, they must focus on reducing expenses to achieve a balanced budget, which they are mandated to do.

Addressing the budget shortfall, Dr. Trani proposed a fiscal plan that includes school closures and the elimination of several key positions: all middle and high school librarians, elementary instructional coaches, and 16 school nurses. The proposal calls for a total reduction of 100 certified staff members, 60 of whom are classroom teachers. Additionally, the budget removes funding for sports transportation and reduces support for other after-school activities.

“I know that the school consolidation thing is the most emotional,” said School board President Kathy McCollum, acknowledging that closing and consolidating schools is not a move anyone wants to see happen. “It wouldn't matter if it was Finger Lake and not Meadow Lakes. It wouldn't matter if it was Cottonwood, and not Larson. It is the same feeling. People love their school.” If approved, the school closures are expected to save over $3.8M.

Although school board officials accepted the need for building closures, they strongly opposed cutting school nurses, directing administration to identify alternative savings for the $1.7 million reduction. The board cautioned that eliminating these positions could jeopardize student safety and expose the district to lawsuits, validating intense parental concerns over the issue

School board member Andrew Shane concurred, saying: “Children are averaging sicker, not healthier. I don't believe that a reduction in force in that area would be a smart move. And I don't know about the legality of it.”

Following significant community interest and pushback regarding the proposed cuts, the school board held a work session the next day. Faced with budget constraints, the board examined detailed plans to reduce expenditures, ranging from potential school closures to across-the-board staffing cuts. Discussions focused on minimizing layoffs by prioritizing central office reductions or implementing across-the-board cuts.

School board member Ole Larson noted that while the public may feels blindsided by the annual budget process, the board has consistently addressed these issues with very little community engagement. “We’ve been in this situation every year…We’ve used our reserve, know this has been coming, we’ve seen it, we’ve talked about it, and it’s finally to the point where everything’s drained.”

The board also acknowledged that seeking additional funding from the State or Borough might necessitate an increase in local property taxes.

There will be a second school board work session on March 16 at 6:00 p.m. and the board is scheduled to vote on a preliminary balanced budget on March 18 at 6:00 p.m. Final budget adoption will occur this year.