School district closer to spending state funds

PALMER — A joint meeting of the Mat-Su Borough School Board and Assembly sailed along cordially and quickly Tuesday evening. Even the previously contentious issue of spending district’s state energy supplement allocation didn’t slow the meeting’s pace, and the elected officials ended the evening with milk and cookies provided by Assemblyman Rob Wells.

Members of the school board offered an explanation to the assembly for its delay in allocating the remainder of a nearly $2.3 million, one-time grant from the state Legislature, asserting the move has been a strategic one. As of Thursday, district spokeswoman Catherine Esary said the state has yet to deliver the money.

“We wanted to try to work out this issue with the assembly,” School Board Member Jim Colver said.

Colver was referring to working with the Borough on a one-time exception to an ordinance requiring the district surrender 50 percent of its monetary rollover at the end of the fiscal year. If the remainder of the energy supplement allocation — about $800,000 — is not spent by June 30, and the assembly does not waive the ordinance by then, the district will lose half the remaining amount, which will go into the Borough’s school site acquisition fund.

The threat of losing half the money seems to worry school officials, who have said it could be put to better use in fiscal year 2009. Many school board members have said the money should go toward energy bills in the next fiscal year, which are expected to rise as the price of oil continues to climb.

“We should probably use some of that money for energy,” School Board Member Myrl Thompson said. “Everything is based on the price of oil.”

At Tuesday’s meeting, school district Superintendent George Troxel said energy costs take up about 3 percent of the district’s operating budget. Troxel said next year’s operating budget is expected to be around $157 million dollars, which would put the cost of energy in the district at roughly $4.7 million.

School district officials seem to have found an ally in Wells, who represents District 6 and penned an ordinance that, if approved, allows for a one-time exception to the rollover rule.

During Tuesday’s meeting, Wells said the Borough needs to look into a long-term change to the rollover ordinance.

“Frankly, the district has no funds at the end of the year to deal with fires, portables” or other unforeseen problems, Wells said. “I’m hoping my colleagues will, first of all, pass that one-time lapse ordinance and allow the school district to keep its remaining $800,000.”

District officials also estimate another $500,000 will be unspent at the end of the fiscal year. Esary said the money comes from various departments in the district. Money left over from each department is pooled at the end of a fiscal year.

After hearing from some school board members, Assemblyman Pete Houston seemed unconvinced.

“What’s different about this year that sparks the reasoning for doing a one-time exception for this rule we have on the books?” Houston asked.

Houston questioned why the district doesn’t pre-buy energy ahead of the 2009 fiscal year. The reason, Troxel said, is district officials working with Matanuska Electric Association and Enstar Natural Gas Co. reported the companies said they aren’t willing to cut a deal with the district for pre-purchasing energy.

Pre-buying energy would save the district very little, Troxel said, adding the energy grant was received by the district “very late in the year,” and a waiver to the rollover would allow the district to take full advantage of the money.

Assemblyman Tom Kluberton, who has been one of the most vocal board members in expressing his frustration with what he has called the illogical inability of the school district to find funding needs for the allocation, was mum during Tuesday’s conversation.

Board Member Colleen Hamblen, however, didn’t mince words when ending the conversation about the issue.

“We got this money from the governor we did not expect to get and we’re going to spend it,” Hamblen said. “We’re going to spend it quickly before we have to give it to the Borough [and] spend it in a cost-effective manner.”

Contact Michael Rovito at michael.rovito@frontiers-man.com or 352-2252.