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Northwest Arctic Borough Assembly adopts FY26 budget, boosts local school contribution
Summary
After extended debate the Assembly adopted Ordinance 25-04 (FY26 line-item budget) and approved an amendment increasing the Boroughs local contribution to the school district by $3,648,387; the meeting also cut travel spending and left other budget lines intact.
The Northwest Arctic Borough Assembly on May 20, 2025 adopted its fiscal year 2026 line-item budget after debate over how much to draw from the unassigned fund balance to support the Northwest Arctic Borough School District (NWABSD).
BAF Chair Reid Magdanz moved to increase the Boroughs local education contribution to $3,648,387 to offset school program reductions and to support completion of the Buckland school housing project; he proposed funding $1,537,586 from excess revenue and drawing $2,110,801 from the fund balance. The amendment passed by majority vote. The Assembly then enacted Ordinance 25-04 as amended (motion by Walter Sampson; second by Lincoln Carr) on a unanimous roll-call vote.
Public Services Director Clara Johnson presented the ordinance and recommended passage. Earlier attempts to amend the budget with larger transfers (including a proposed $6 million appropriation and subsequent revised figures) were withdrawn or failed on roll call amid concerns about exceeding statutory limits and preserving reserves. Magdanz and others urged caution about committing one-time fund balance dollars for ongoing expenses.
The Assembly also unanimously approved a reduction in the Assembly travel budget (accounts 6210, 6220, 6230, 6250 and 6820) as part of efforts to identify savings. A separate motion to meet in-person every other month failed on a roll-call vote after members raised concerns about village representation.
Why it matters: The increase in local contribution directs more one-time Borough resources toward NWABSD operations and projects at a time when members said state funding is insufficient. Assembly members repeatedly framed the change as a stopgap to avoid immediate program cuts while preserving oversight of long-term fiscal health.
What happens next: The budget ordinance takes effect as adopted. Assembly discussions signaled interest in ongoing review of revenue forecasts, grant timelines and the Boroughs unassigned fund balance before committing additional recurring support.
