Alaska senators open closed-door talks as K-12 funding shortfalls threaten local programs

Senators said on the Senate floor in Juneau that closed‑door negotiations are under way with the governor and representatives of all four legislative caucuses to try to reach agreement on addressing a statewide K‑12 funding shortfall that lawmakers described as a crisis.

Senator Stevens, speaking as presiding officer, said the legislature and the governor are “in the midst of good faith discussions” and that the Senate Education Committee will continue public hearings to gather testimony from parents, students and educators. “We are looking toward how we might be able to infuse our schools with the desperate resources that they need,” Senator Tobin, chair of the Senate Education Committee, said.

The negotiations are meant to produce a package of policies and funding priorities, but senators emphasized the process will include public committee work. “Anything that goes in into our committee process will be done in the public,” Stevens said, while also confirming that leaders accepted the governor’s request that caucus leaders meet privately to try to find common ground.

Why it matters: senators described rising fixed costs—property and operations insurance, health care and salaries—alongside shrinking district fund balances as the immediate cause of pressure on classrooms and local programs. Senator Kiel said updated figures from the Department of Education and Office of Management and Budget show “there aren't funds left unspent” in many districts, and that difficult choices will be required to keep districts solvent.

Local impact and examples: Senator Bergman said constituents on the Kenai Peninsula reported that “the Kishikmeenow High School is on the list of potential school closures that the Kenai Peninsula Borough School District may have to undertake if necessary funding is not provided by the state.” Bergman warned that closures could end career and technical education programs in places such as Nikiski where students learn welding and construction skills.

Options under discussion: senators described two broad approaches under consideration—directed spending for specific programs promoted in the governor’s package, and broader increases in the Base Student Allocation (BSA) or flexible state aid that would let districts cover local fixed costs. “Are we gonna provide what funding we can find to school districts to meet the most important needs and minimize impacts on classrooms?” Senator Kiel asked, summarizing the legislative dilemma.

Skepticism about tapping long‑term savings: multiple senators said they are reluctant to draw heavily from the state’s constitutionally created savings. Senator Stevens said repeatedly that his caucus is “not gonna tap the CBR,” referencing requests from the governor to use part of the Constitutional Budget Reserve; he cited prior advice that the reserve target should be $5 billion.

Process and timing: Senate leaders said the caucus meetings with the governor are intended to produce proposals within roughly two weeks but acknowledged the timeline could change. Any resulting legislation will still go through the public committee and hearing process, they said.

No formal votes or final decisions were announced during the press availability. Senators urged continued public testimony at committee hearings and said they will return to the floor and to their caucuses with any proposals that emerge from the leadership talks.

Taper: Senators repeatedly framed the discussions as oriented to the long‑term fiscal health of the state and the education system—seeking funding that they said should preserve savings and sustain future years rather than rely on one‑time draws from reserves.