School district announces plans for deep cuts, possible sales tax vote

PALMER - Facing an anticipated $11 million-plus deficit for the upcoming school year, the Mat-Su Borough School District is working through the 2017-2018 budget which, if implemented, would see staff cutbacks, increased student meal prices, reduction in discretionary spending and an across-the-board increase in pupil-teacher ratios. Discussion of putting a borough-wide sales tax before the public also came up for discussion.

At Wednesday evening's regular session, Superintendent Gene Stone reviewed the district's plans on getting to the state-mandated balanced budget. He began by noting current state cutbacks led to the district having to cover an unanticipated $1.36 million increase in transportation costs, which explained the overall deficit increase from an earlier preliminary figure of $9.86 million.

Stone walked through each proposal and the expected savings each would bring, starting with an increase in pupil to teacher ratio. Increasing current levels by one student at the elementary level and two at the middle and high school levels would generate almost $2.8 million in savings. Reducing certified staffing levels--counselors and instructional coaches --by 14.5 full-time positions would realize just over $1.8 million in savings. Non-certified staff cuts--school aides, assistants and monitors--of 28.5 full-time positions would reduce the deficit by just over $2.0 million.

One area which has generated much discussion, was in custodial services. Administration had presented a proposal to privatize the service at recent meetings. Wednesday, Stone reviewed a proposal which would keep custodial services in-house, but eliminate 18 full-time positions saving the district more than $800,000. To make up for the staff reduction offices, labs, libraries and special-elective classrooms would be cleaned weekly while other classes, hallways, restrooms, gyms, etc would remain unchanged.

Other areas of reduction and amount saved include student activities by approximately $560,000, site based budgets (discretionary building funds) approximately $1.25 million, and a food service subsidy reduction of about half.

Food service privatization had been another area of contention with some in the community to eliminate the anticipated subsidy of $700,000. Stone said through expanded use of the district's community eligibility program (CEP) and a proposed increase in district meal prices, combined with 1.75 full-time staff reduction, the district's subsidy could be cut to $378,200.

If implemented, student meal costs would increase across the board. Breakfast prices would rise 25 cents for elementary, and 50 cents for middle and high school students. Lunch prices would increase 25 and 60 cents respectively. Stone's figures are predicated on a continued six percent impetus from the borough. Will be voted on next meeting.

Regardless of the current budget scenario, Stone said it has become abundantly clear that the district is in need of a new revenue stream. Assistant Superintendent Luke Fulp made a presentation on a proposed borough-wide sales tax to fill that void. If adopted, Resolution 17-004 would provide a dedicated sales tax to supplement current per pupil funding adjusted for inflation.

Fulp said it is too early in the process to look at a specific tax amount. He said the proposal is conceptual in nature and pointed out the borough currently funds the school district at 78 percent of the maximum allowable amount. Under current state law, borough funding could increase by more than $16 million without exceeding the limit.

Fulp presented statistics showing borough per pupil funding levels show the Mat-Su at $2,969 when compared with Anchorage School District at $4,291, Fairbanks North Star Borough at $3,988, Juneau School District at $5,311 and Kenai Peninsula Borough School District at $5,493.

"We don't know the total amount generated for a two percent or three percent sales tax," Fulp said. "That needs to be worked out with the borough."

Fulp said any implementation of a sales tax would have to be approved by the borough. Stone said he has had "good, positive conversations" with Mat-Su Borough Manager John Moosey and Mayor Vern Halter. It was unclear as to the latest date the resolution could be brought before the public in order to be affective for the upcoming school year.

The board must have a balanced budget in place by June 30. By the end of this month, the district must have a preliminary budget to the borough and the borough must allocate a minimum district funding level set by the end of April. The district will hold at least two public hearings this month as well as two each in April, May and June before adopting a final budget.