Gov. Mike Dunleavy signed the state’s budget today. The plan proposes $15.7 million worth of new spending on state operations and capital projects, and covers the fiscal year that starts on July 1.
The budget includes a $1,718 Permanent Fund dividend for Alaskans. It also contains $175 million in bonus funding for Alaska’s K-12 schools. The amount is on top of what the state already provides per state law. It’s equal to a roughly $680 increase to the base amount of money the state gives school districts per student.
Clayton Holland is the superintendent of the Kenai Peninsula Borough School District. He said Friday the one-time funding will bring in more than $11 million for the school district next fiscal year, which will go a long way for the district. KPBSD worked earlier this year to offset a $16 million deficit and passed a budget that included controversial cuts to staff.
“All the theater techs and pool managers are in place,” he said. “All the other reductions that we had on the block there also go away. So that is good. We’d already proceeded with the budget in that direction at the last board meeting in anticipation, so we’re really thankful for that.”
Holland said the district is also happy that Dunleavy left money for student transportation in the budget. Those funds mean KPBSD won’t have to consolidate more bus routes.
Dunleavy did veto more than $230 million worth of spending approved by lawmakers across the state’s operating and capital budgets. In most instances, he justified the vetoes as being necessary to preserve the state’s general fund.
Among the vetoes are $5.5 million for KPBSD. That’s money the U.S. Department of Education says the state owes the district because of underfunding during the COVID-19 pandemic. The state maintains it adequately funded KPBSD.
“We were really hopeful for the maintenance of equity funding,” Holland said. “That would have put us in a position where we weren’t tapping into fund balance at all.”
In his summary of vetoes, Dunleavy said he vetoed the maintenance of equity funds because the funding need is QUOTE “indeterminate at this time.” The total veto amount is more than $11 million for KPBSD and for the Anchorage School District, and only covers one fiscal year.
Also vetoed is $3.8 million for capital projects on the peninsula. Among the vetoed projects are upgrades to borough roads, street light improvements in Kenai, expansion of the Soldotna Regional Sports Complex and installation of a new septic system for Nikiski seniors.
State budget documents can be accessed on the Office of Management and Budget website.
