Kenai Peninsula Borough sets $57.6 million local school funding floor after hours of testimony

The Kenai Peninsula Borough Assembly voted 7-2 on May 6 to set a floor of $57,634,015 for local funding of the Kenai Peninsula Borough School District for fiscal year 2026, after lengthy public comment and debate about school closures, program cuts and the state’s role in education funding.

The floor was adopted by resolution 20-25-021 after an amendment clarifying that the vote established a minimum contribution rather than the final local contribution amount. Assemblymember Tonseth introduced the resolution and the assembly later recorded the 7-2 tally; Assemblymember Cox and Assemblymember Eklund cast the only no votes.

The vote came after a packed public hearing in which dozens of parents, teachers and students urged the assembly to fund schools to the cap or provide additional one-time funding to delay closures. Speakers included students from Soldotna High School and public commenters from Sterling and Homer who described the local impact of potential school closures and cuts to extracurriculars, counseling and career-technical programs.

The discussion centered on two competing pressures: local officials’ desire to secure immediate funding to avert layoffs and program eliminations, and the borough’s concern about long-term fiscal sustainability and how property-value-driven funding formulas interact with state support. Several assembly members said they continue to press the state for a predictable, inflation‑adjusted funding model for schools.

Public comment highlighted Sterling Elementary, which faces a district decision to close its doors. Parents and students described long bus rides, lost community hubs and the emotional toll of closing neighborhood schools. Students from Soldotna High and other schools spoke about program losses they said would reduce opportunities — such as AP courses, theater tech positions and extracurricular stipends.

Assembly discussion emphasized that the resolution sets a floor for the borough’s contribution and that final budget decisions will be made through the borough’s annual budget process. Vice President Cooper and Assemblymember Morton co-sponsored the amendment that added language noting the measure sets the borough’s local contribution floor and that the final amount will be determined during the upcoming budget process.

The assembly also adopted procedural items earlier in the meeting that affect the school budget timeline: the agenda and consent agenda were approved unanimously, and an ordinance amending borough employment minimum qualifications was enacted unanimously earlier in the evening.

What the resolution does and what happens next

Resolution 20-25-021 directs that at least $57,634,015 be made available from local sources toward the school district’s operations for fiscal year 2026. The assembly’s action does not itself appropriate that full amount into the borough budget; final appropriation and any adjustments will be decided in the borough’s budget hearings later this month and in June.

Assembly members and the mayor emphasized that the borough continues to lobby the state for broader changes to school funding. Several members said they favored funding to the cap if state action and the borough budget allow, but others said they wanted to preserve fund balance and maintain the borough’s fiscal flexibility as budget details are refined.

Public reaction and context

Dozens of speakers urged the assembly to raise local funding beyond the floor or to use available unspent borough funds to delay school closures for a year while longer-term solutions are pursued. Students described AP classes, theater programs and athletic stipends that would be cut under the district’s proposed reductions.

School district Superintendent Clayton Holland presented the district’s budget scenarios during the assembly’s earlier presentations: the district outlined scenarios for…