Mayors warn school closures and deep service cuts as local budgets strain under education costs

Juneau — Mayors and municipal officials from Kodiak to Craig testified Feb. 19 that higher local contributions for K‑12 education are crowding out other municipal services, increasing property tax burdens and, in some communities, contributing to school closures.

Scott Arndt, Kodiak Island Borough mayor, said the borough spends the equivalent of “over 80% of the tax dollars that we collect” on schools when major maintenance, bond debt and operations are counted. “The impact on the local taxpayers… I call it rent on your home,” Arndt said, arguing that deferred maintenance and the loss of school bond debt reimbursement leave Kodiak with tens of millions in unmet projects.

Petersburg Borough Mayor Mark Johnson told the committees his borough already pays the statutory maximum local contribution and has added school utilities and roughly $200,000 a year for transportation. He said continuing those commitments could force cuts to public safety, library services and recreation.

Felix Rivera, a member of the Anchorage Assembly, described an average cost to Anchorage homeowners and framed cuts as lost opportunity that drives families away. “That hope is dashed around this time every year,” Rivera said, imploring lawmakers to find long‑term funding solutions.

Juneau Mayor Beth Weldon described the City and Borough of Juneau’s FY‑25 contribution — roughly $34.5 million, about 22.5% of the general fund and 5.49 mills of the local rate — and recounted recent school consolidations, deferred capital work and insurance cost increases. Denali Borough Mayor Chris Noll said 48% of his borough’s FY‑24 general fund expenses went to the school district and stressed schools’ role as community hubs, shelters and libraries.

Rural leaders highlighted distinct pressures. Aleutians East Borough Mayor Alvin Osterback said the borough’s revenue is tied to a raw fish tax that can swing dramatically; he reported about 35% of borough revenue currently goes to schools and urged creative state support so small communities can keep local schools open. Alvin Osterback urged the legislature to explore hybrid approaches using broadband and remote instruction to sustain very small classroom communities.

Yakutat Mayor Cindy Bremner said Secure Rural Schools payments remain critical to keeping doors open and warned that without sustained federal and state support small communities face compounding declines in services and population. Toksook Bay Mayor Sam Chenar described filling temporary teacher roles as a municipal leader and stressed that school buildings serve as emergency shelters and community meeting space.

Smaller communities raised workforce and program issues. Craig Mayor Casey Smith and Bethel City Council member Mark Springer described teacher shortages, the loss of certified staff, and the growing share of students with special needs being served under strained conditions. Anderson Mayor Katie Grievey urged lawmakers to consider repurposing under‑enrolled school facilities for job training, daycare or satellite CTE instruction rather than full closure.

Multiple municipal witnesses urged three shared priorities: increase and inflation‑proof the state Base Student Allocation, restore or reform school bond debt reimbursement and major maintenance funding, and consider targeted support for small and remote districts (including maintaining Secure Rural Schools funding and enabling satellite or hybrid instruction).

Committee members asked mayors for specific dollar needs and suggested local legislators coordinate with municipalities to present consistent requests. Several mayors said they will provide written testimony and budgets to the committee record.

The testimony series ended with a request from committee members that municipalities submit the concrete numbers needed to avoid cuts in FY‑26 so legislators can weigh those requests during the budget process.