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Superintendent says HB57 would add modest revenue but leaves transportation gap; board faces possible June budget choices
Summary
Superintendent Dr. Meinert updated the board on HB57, which would add a small permanent increase to the base student allocation and additional transportation funding. He said the bill would not close the district's projected budget shortfall and highlighted a roughly $500,000 transportation gap after a planned $2 million transfer.
Superintendent Dr. Meinert told the Fairbanks North Star Borough School Board that HB57, recently passed by the legislature and awaiting the governor's action, would provide a modest, permanent increase to the base student allocation (BSA) and additional transportation support — but would not fully close the district's budget gap.
Dr. Meinert said the bill's $20 increase in the BSA would translate to about $350,000 to $400,000 in new revenue for the district, a helpful but limited amount. He noted the district's break‑even point would require a much larger BSA increase.
On transportation the superintendent said HB57 would increase state support from roughly $10,000,000 to about $11,000,000, while the district's projected transportation costs are approximately $13.5 million. The district's recommended budget already built in a $2 million transfer from the general fund to the transportation fund; even with that transfer the transportation fund would still face about a $500,000 shortfall that would need to be covered by additional general fund dollars or drawing from fund balance.
"It is critical that HB57 passes to help prevent further reductions beyond the $16 million in cuts the board has already worked through," Dr. Meinert said, adding that REEDS Act and CTE funding in HB57 would be helpful but are tied to passing a revenue bill in the legislature.
Board members asked clarifying questions. Missus Doolian asked whether the anticipated deficit noted earlier included the transportation gap; the superintendent said it did not and that the combined pressure could raise the potential shortfall to roughly $700,000 depending on other moving parts.
The board noted the district must adopt a final budget by June; Dr. Meinert said the district hopes to finalize adjustments in June if the governor signs HB57 and the borough adopts its budget, but he cautioned the timing depends on state and borough actions.
