Juneau School District adopts FY27 budget using $5.7M in fund balance; assembly and school board ask staff to clarify joint facilities process

The Juneau School District board and the City and Borough of Juneau finance committee reviewed the district’s adopted FY27 budget on March 18 and discussed near-term fiscal choices and long-standing communications gaps over joint facilities projects.

Superintendent Frank Hauser told the joint meeting the district’s FY27 budget development began with a rollover budget adjusted for enrollment and teacher-staffing ratios, and the adopted budget must be transmitted to the assembly and to the state board of education by statutory deadlines. Hauser said projected enrollment continues to decline by about 1.5%–2%, with an FY27 projection of 3,767 students.

Hauser and Chief Financial Officer Nicole Herbert said projected district revenues total roughly $76 million, assuming the maximum city contribution and current state funding levels; the district expects to use about $5.7 million of fund balance to balance the FY27 budget. "The proposed budget will be submitted to the assembly by the April 1 deadline and must be balanced by state law," Hauser said.

The board kept its pupil‑teacher ratios for budgeting: K–3 at 26:1, grades 4–6 at 28:1, and secondary grades at 30:1. The district reported that about 75% of expenditures will go directly to instruction and that roughly 86% of total spending is for salaries and benefits. Hauser highlighted transparency tools the district used during budget development, including an online "balancing act" simulation that drew community interest.

The district requested noninstructional funding from the borough totaling $2,109,000 for items including high‑school activities ($1.2 million), middle‑school activities ($90,000), student transportation ($409,000 to address a contract shortfall), food services and community‑schools programming, and a $200,000 allocation for community schools/learn‑to‑swim.

Assembly members asked detailed questions about the district fund balance level after the draw and about energy and utility categorization. Herbert explained state reporting categories (utility services vs. energy) and said the district has pursued energy‑efficiency work through grants (e.g., Renewing America Schools) and is auditing several buildings for HVAC upgrades.

Members of both bodies also raised long-standing operational concerns about facilities coordination. Board and assembly members revisited the contentious Zontakini playground project and earlier discussions about consolidating maintenance services with the city. Concerns included lack of clarity on roles and how design and interdepartmental charges were allocated during past joint projects.

Assembly member Christine Wall moved that CBJ staff work with JSD staff to draft a proposed process for how both bodies will communicate and make decisions on joint facilities projects. After debate and a failed amendment to broaden who draws up the process, the assembly passed Wall’s motion; the school board then adopted the same motion on its side. The motion directs staff to return to the joint facilities committee with a proposed process.

The meeting also covered flood‑mitigation concerns at Mendenhall River School (bank stabilization, fencing) and questions about after‑school childcare funding; the assembly discussed options including the grants process and the possibility of an ordinance to accelerate funding decisions.

The joint meeting adjourned after the bodies agreed to send staff to draft the facilities process and to follow up on budget timing and CIP items.