Petersburg school leaders lay out budget scenarios, warn of steep cuts without state funding

Petersburg, Alaska — Petersburg School District officials and borough leaders met Feb. 6 for a joint work session in which the district presented budget scenarios showing a wide range of outcomes tied largely to state funding decisions and proposed legislation in Juneau.

The district presentation, led by Superintendent Robin Taylor and Finance Director Shannon Barrett, used a “pencil chart” from the Alaska Council of School Administrators to show how the purchasing power of the state Base Student Allocation (BSA) has eroded since February 2011. Barrett said the graphic illustrates that the BSA of $5,680 in February 2011 would have the equivalent purchasing power today of roughly $7,769 if it had kept pace with inflation.

Why it matters: district officials said the BSA and one‑time state funds determine whether the borough must increase contributions, and whether the district can restore positions cut in prior years. Without a material change in state funding, the presenters warned, Petersburg would quickly draw down reserves and face significant program and staff cuts.

Shannon Barrett, the district finance director, walked the assembly through three scenarios. The “worst case” assumes a flat BSA for fiscal years 2026–27 and a continuing decline in student enrollment (from 456.8 this year to projected 440 next year and 434 the following year). Barrett said that scenario would deplete the district’s fund balance and could leave the district “almost $1,500,000” in the red by the end of fiscal 2027 unless massive cuts are made.

A middle scenario assumes the district receives the same supplemental per‑pupil funding next year that it did in fiscal 2025 (the one‑time $680 over BSA and other one‑time funds). That scenario would allow the district to operate longer on…