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Governor Dunleavy vetoes Alaska education budget reducing BSA increase from $700 to $500

June 25, 2025 | Ketchikan Gateway Borough, Alaska


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Governor Dunleavy vetoes Alaska education budget reducing BSA increase from $700 to $500
Concerns over education funding took center stage at the Ketchikan Gateway Borough School Board meeting on June 25, 2025, following Governor Dunleavy's recent line-item veto of the state's education budget. The veto slashed the proposed Base Student Allocation (BSA) increase from $700 to $500, prompting significant backlash from the education community.

Board members expressed alarm over the implications of the veto, which they argue shifts the financial burden onto local districts. "We are going backwards," one member noted, highlighting that last year's funding was $6.80 per student. The potential for a lawsuit against the state over inadequate education funding was also discussed, indicating rising tensions within the community.

The board's budget, crafted with the veto in mind, anticipates a $500,000 reduction in surplus, but officials remain hopeful that adjustments can be made to maintain operational stability. "We’re not going to have to downsize or eliminate programs," said a board member, emphasizing that while the cut is significant, it could have been worse.

Representative Bynum joined the meeting via Zoom to provide updates on legislative efforts surrounding education funding. He detailed the challenges faced in securing a stable BSA increase, noting that while a $700 increase was initially passed, it was ultimately vetoed by the governor. Bynum underscored the importance of ongoing discussions about adequate funding and the need for a task force to assess educational needs.

The meeting also touched on the expiration of the moratorium on school bond debt reimbursement, which is set to take effect on July 1, 2025. This change could provide additional financial support for school districts, but concerns about deferred maintenance and overall funding remain prevalent.

As the board prepares for potential budget amendments later this year, the uncertainty surrounding the governor's veto and its impact on local education funding looms large. The next legislative session in January may hold the key to resolving these pressing issues, but for now, Ketchikan's education leaders are left navigating a challenging fiscal landscape.

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