Kenai Peninsula superintendent warns of deep budget shortfall; hiring freeze and school closures possible

Juneau — Clayton Holland, superintendent of the Kenai Peninsula Borough School District, told the Alaska Senate Education Committee on Jan. 27 that his district is projecting a severe shortfall that will force staffing and program reductions if the state does not provide earlier or larger funding.

Holland said the Kenai Peninsula Borough School District (KPBSD) — which he described as “the size of West Virginia,” with 42 schools, about 8,500 students and roughly 1,200 employees — is projecting “almost $17,000,000” in deficit for the coming year and that the district’s unrestricted fund balance has fallen “to less than $300,000.” He said the district has placed a hiring freeze on new and temporary positions and was considering “massive cuts” to programs, staff and potentially school closures; he scheduled a district work session on Feb. 4 to consider options.

Why it matters: a multi-million-dollar shortfall in a large district threatens classroom services, special education staffing and extracurricular programs; public testimony that followed the superintendent’s remarks described parallel staffing shortfalls in Anchorage and Seward.

Holland said escalating fixed costs —…