The Haines Borough School District’s finances aren’t as rosy as some might think, interim superintendent Rich Carlson said this week.
Carlson, who last month reported the district was holding a $906,000 balance in its general fund, told the school board Tuesday that a preliminary look at next year’s budget suggests a shortfall more than half that amount.
“We may well be looking at a deficit next year around or in excess of $500,000. I want to let you know that because in the past three or four weeks, people have been pushing around this idea that you have all this extra money. That extra money is going to be spent up pretty quickly in the present budget we’re in,” Carlson told the board.
Reductions include loss of $118,000 the district received last year in state “hold harmless” funding, money from the state to buffer loss of funding from decreased enrollment; loss of a “considerable amount” due to fewer “intensive” students and a drop in federal compensation for telecommunications.
Costs could increase a total of $200,000, including for insurance for a new superintendent, step salary increases, and additional costs for new teachers whose first year included two fewer months’ compensation than the coming one.
Carlson said due to budget constraints, he’s recommending the elimination of a full-time technology position started last year to help introduce computers in classrooms. The $51,000 position was funded mostly by grants.
The budgeting challenges aren’t as steep here as elsewhere, Carlson said. “The school has been conservative and the district has been generous. We’re not looking at eliminating programs and mass layoffs like some places.”
Carlson said so far he’s anticipating that borough funding of the district will stay at last year’s amount and is building his funding estimates on a $50 per student increase in the state’s base student allocation, an amount proposed by Alaska Gov. Bill Walker.
It’s also unclear whether the borough will be receiving another year of federal timber compensation funds. Last year a federal timber allocation of $124,000 went to the borough for schools.
A draft school budget is due to the Haines Borough by April 1. A board work session on the budget is scheduled for March 28. The next regular school board meeting is March 1.