Assembly backs resolution urging permanent increase to state school funding after student testimony and state presentation

The Kenai Peninsula Borough Assembly on Feb. 25 unanimously approved Resolution 20 25‑14, urging the State of Alaska to implement a sustainable increase to the Base Student Allocation (BSA) and to invest in strategic improvements in public education.

The resolution, introduced by Assemblymember Kevin Cox and amended on the assembly floor to add new language about the borough’s local contribution and “strategic investments in teacher retention, student literacy, and public school choice options,” was added to the consent agenda and approved without objection when the assembly adopted the agenda and consent agenda later in the meeting.

The resolution drew a flood of public testimony before the vote, largely from students and teachers. Kenneth Fine, identified as a freshman at Soldotna High School, told the assembly the borough school district “is facing a $17,000,000 deficit for the next year,” and urged members to adopt the resolution to press the state for permanent increases tied to inflation. “If the BSA had simply kept up with inflation, our district would be receiving around $1,800 more per student,” Fine said.

Multiple other students described concrete local effects: Adeline Ross said portable classrooms at her school were not being heated properly and that janitorial staff had been laid off; Brett Haas and other student athletes described extracurricular programs and travel that are at risk if funding cuts continue; Elias Beshore said his theater program relies almost entirely on admissions revenue to pay licensing fees and that a funding increase would help sustain sets, props and costumes.

Teacher Luke Herman said chronic austerity has harmed opportunities for students and made it harder to retain teachers. “It cannot be understated that school quality is of the utmost importance to working families,” Herman said. Local officials and the mayor of Homer, Rachel Lord, also spoke in support of the resolution.

Before public testimony, Todd Smolden, a representative of Governor Mike Dunleavy’s office, presented the administration’s view on education reforms being proposed at the state level. Smolden, a former teacher who said he has been working on education policy in the governor’s office for several years, said the governor “supports an increase in funding for schools” but seeks reforms that target investments to outcomes, improve transparency, and expand public school choice. He said polling the administration commissioned showed broad public support for both an increase in the BSA and for measures such as open enrollment and charter capacity usage.

Superintendent Clayton Holland of the Kenai Peninsula Borough School District (KPBSD) delivered the district’s quarterly report and budget outlook. Holland reiterated earlier district presentations that the BSA has not kept pace with inflation since 2011, eroding purchasing power and contributing to staffing and maintenance pressures. He told the assembly the district is considering potential school consolidations and listed nine schools that had been discussed previously by the school board as possible candidates for closure or consolidation in coming years, though he emphasized that not all would be closed and that the process involves community deliberation.

Holland highlighted student achievements and some reading‑literacy gains tied to targeted programs, and concluded with a plea that state funding not remain static while costs rise: “Every child that comes in our doors belongs to us,” Holland said, adding that the district sees strong growth in kindergarten literacy when targeted supports are in place.

What the assembly did - The assembly amended Resolution 20 25‑14 and placed it on the consent agenda; later the assembly approved the consent agenda (including the amended resolution) by unanimous consent when it approved the agenda and consent agenda. - The resolution itself is a request directed to the State of Alaska; the assembly’s action does not change local tax rates or district budgets.

Why it matters The Kenai Peninsula Borough provides a comparatively high local contribution to schools; the resolution and testimony highlight a growing gap between borough contributions and state funding. District officials say the combination of static state per‑student funding and rising costs is creating budget deficits that could force larger class sizes, program cuts, staff turnover and potential school closures if the state does not provide more stable, inflation‑adjusted support.

Next steps and context The resolution asks state leaders to adopt a permanent, inflation‑indexed increase to the BSA and to pursue targeted investments tied to teacher retention and literacy outcomes. The assembly’s letters and resolution will form part of the borough’s legislative outreach; the governor’s office and the legislature continue to negotiate related bills at the state level. The district’s budget process will continue locally; the superintendent said the district may advance discussion of some school consolidations at upcoming school board meetings.

Sources: testimony and presentations given at the Feb. 25, 2025 Kenai Peninsula Borough Assembly meeting, including public commenters and presentations by Todd Smolden (Governor's office) and Superintendent Clayton Holland.