Ketchikan Assembly approves supplemental school funding, holds back full FY26 allocation amid fiscal uncertainty

The Ketchikan Gateway Borough Assembly on May 5 approved a $939,156 increase to the FY25 local education contribution — including $453,405 paid in cash and an in‑kind health insurance payment not to exceed $485,751 — and set conservative parameters for FY26 local funding while scheduling additional public hearings to resolve remaining questions.

Assembly members and borough staff said the action is intended to keep school operations funded near the district’s requested level while protecting borough reserves as state revenues and district counts remain unsettled.

Assistant Borough Manager Cynna Smith told the assembly that student counts and state revenue estimates changed after the district submitted its budget, reducing the maximum allowable local contribution by roughly $19,887. Smith recommended language that lets staff adjust the in‑kind payment downward “not to exceed” the stated amount so the borough will not overfund the district if final state numbers change.

The assembly approved ordinance 2065 on a 5–1 vote (Arntzen opposed). The…