School costs could swell

January 24, 2006

JOEL DAVIDSON/Frontiersman reporter

MAT-SU - Despite the fact that the Mat-Su School District could receive $9 million more in state funding over last year, the overall schools budget could still fall $4 million short.

As Mat-Su School Board members piece together a fiscal year 2007 budget, they are operating under two critical assumptions: first, that the Mat-Su Borough will provide the same amount for education as it did last year ($38 million) and, secondly, that state legislators will accept Gov. Frank Murkowski's proposed $90 million increase to state education this year, which would mean a total state contribution of $104 million for the Mat-Su.

But with 579 more Mat-Su students expected next year, along with a slew of rising education costs, the district will still have to be creative to make ends meet.

In a preliminary draft budget to the school board, the district administration stated that it expects the base costs to operate Mat-Su schools to swell by roughly $14.7 million next year. Most of the rise is due to growing costs of state retirement benefits ($4.4 million), salary increases ($3.4 million), health insurance premium increases ($2.5 million), and the necessary funds to open, staff and outfit a new Wasilla-area elementary school ($2.5 million.)

Other major increases include $740,000 for fixed costs such as utilities and insurance premiums, and a $1 million increase for special-education positions.

In order to make up the shortfall, Chief School Administrator Bob Doyle is proposing a series of budget reviews, which include privatizing the district's food service, maintenance and housekeeping, along with restricting out-of-state travel and reducing staffing.

Other possible reductions include energy conservation measures, reviewing copier usage and eliminating free custodial supervision for night and weekend community use of schools.

Perhaps the biggest impact on school employees is the administration's proposal to reduce full-time positions from 260 paid days to 240 - nearly a month less pay for district employees.

The draft budget is still in the early stages, and final approval will ultimately come from the seven-member school board. Doyle also pointed out that many of the reductions might not be necessary if the state Legislature decides to add to the governor's proposed $90 million increase in education funding.

Another factor that the school board might need to consider is the likely increase in class sizes if funding for new portable classrooms is not secured. Doyle is also asking the board to reconsider additional high school graduation requirements that were approved last year. Without portables or funding for additional staff at the high school level, the administration is requesting that the board consider possibly postponing the new requirements for two years.

The budget takes its next steps forward Feb. 15, when school district administration presents its final plan to the school board. On Feb. 22, the board will hold a budget work session. Then, on March 1, the public will get the first of two chances to weigh in on the budget. By March 31, the school board must submit its budget to Borough Manager John Duffy, before it heads to the borough assembly for final approval.

The next regular scheduled school board meeting is set for Feb. 1, 6 p.m., at Palmer High School.

Contact Joel Davidson at

352-2266 or joel.davidson@

frontiersman.com.