Valdez school board approves FY27 budget update, plans modest draw from reserves

The Valdez City School District board on a unanimous voice vote approved a revised FY27 budget that trims spending and uses a small portion of the district’s undesignated reserves.

Superintendent Jason Weber told the board the district faced a roughly 20% increase in health insurance costs — a figure he described as about $487,000 in additional pressure — and proposed a set of offsets and revenue adjustments. The package includes an estimate of $173,500 in additional state revenue tied to two expected intensive students, personnel savings from position changes, utilities and subscription reductions, and a recommended $180,000 reduction in discretionary spending.

Even after those adjustments, the proposal requires a $135,500 draw from undesignated reserves, which Weber said would amount to roughly 9.03% of the allowable carryover. "I feel really confident about it," Weber said, framing the plan as conservative and noting the district’s effort to avoid deeper cuts while staying compliant with statutory reserve rules.

Board members asked clarifying questions about the numbers, including whether the reserve draw and the revised carryforward percentage had altered the district’s overall risk profile. Weber noted some budget line items reflect accounting timing and items the board does not control, such as certain state allocations that appear on the budget spreadsheet.

The board approved the budget update by voice vote with the recorded tally noted in the meeting as six yays and the student representative voting in favor. The action was described by administrative staff as necessary to finalize work agreements and move other implementation steps.

The district said it will monitor enrollment and state funding changes and return to the board if further adjustments are required.