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Kenai Peninsula Borough assembly debates three education funding resolutions—hold-harmless reform, assessed-value freeze, and $630 BSA increase
Summary
The assembly discussed three resolutions on education funding: amending AS 14.17.410 to ease penalties for school closures, freezing assessed values for the Base Student Allocation calculation for three years, and urging support for HB 374 to add $630 to the BSA; members disagreed on whether the measures contradict each other and no votes were recorded.
The Kenai Peninsula Borough legislative committee discussed three separate resolutions addressing state education funding and the borough’s local impacts.
Resolution 2026-0016 asks the state to amend Alaska Statute 14.17.410 to reduce statutory disincentives when school districts close or consolidate. Mayor Michicky said the goal is to align the 'hold harmless' provision (which allows a district to offset ADM decreases for four years) with a later subsection that currently bars reopening a closed school for seven years. Borough attorney Kelly explained the current structure: the hold-harmless offset lasts four years, and a separate provision prevents reopening for seven years, creating what the borough sees as an inconsistent penalty.
Resolution 2026-0017 requests the legislature hold the determination of full and true value of taxable real and personal property under AS 14.17.510 to the FY26 determination for three years — effectively freezing the assessed values used in BSA calculations. Mayor Michicky said assessed-value escalation is 'working against us' and argued that freezing last year’s assessed values would help while state and local officials pursue longer-term funding reforms.
Assembly member Eklund introduced a lay-down resolution (2026-0018) urging support for HB 374, which would increase the Base Student Allocation by $630 per student. Eklund said the bill is short and that public testimony in committee supported increasing the BSA to help retain and attract staff.
The discussion featured differing priorities. Vice President Cooper flagged an apparent contradiction between an earlier resolution that said the borough was "not asking for more funding" and the Eklund resolution that does ask for an increase in the BSA. Some assembly members, including Anker, questioned the state’s fiscal capacity and cautioned that a short-term oil-price uptick may not justify a lasting increase. Others warned that repeated "rescue" appropriations can undermine local incentives to pursue long-term efficiencies.
Staff member Brandy gave a technical explanation of how a BSA increase would change the state/borough split: in the illustrative scenario discussed, the state portion would rise from about $72 million to about $82 million. Several speakers emphasized that the borough currently operates under the 'lesser of' calculation and that local statutory authority to directly freeze local assessments is limited.
No votes on the resolutions were recorded in the provided transcript. The committee adjourned after discussion.
Next steps: the transcript records debate and staff technical clarifications; the resolutions were presented but not voted on in the excerpt.
