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Denali Preschool asks Borough for stable funding as Assembly adds 'education services' line to FY27 budget
Summary
Denali Preschool & Learning Center requested a Memorandum of Agreement and predictable funding to stabilize programs and staff; the mayor and finance committee proposed a $66,000 education-services line in the FY27 budget to support staffing and childcare-assistance shortfalls. The budget was introduced and postponed for further review.
Monica McGary, co-director of Denali Preschool & Learning Center (DPLC), told the Denali Borough Assembly that the center is “essential infrastructure” for the borough and described long-running financial fragility, frequent turnover in leadership and staffing challenges since the pandemic.
“The proposed MOA that is a part of the budget is not just support for a program. It is an investment in the stability, sustainability, and future of this community,” McGary told the assembly during public comments.
In follow-up discussion, Mayor Null and finance staff described a proposal to add a new FY27 line item—labeled in the draft budget as “education services” (line 5600)—to provide direct support to early-childhood services. The mayor cited a working proposal of roughly $66,000 to help cover staffing and make up shortfalls in the childcare assistance funding the center receives from the state.
Why the borough is being asked to help: McGary and other witnesses described a mismatch between the state’s preschool funding rules and the operational reality of a small, licensed early-childhood center. The state childcare subsidy program is tied to an enrollment and cutoff date (September 1) that can change which children are eligible for subsidy, and the subsidy does not fully cover the center’s costs. DPLC said the center relies heavily on temporary grant funding, volunteer and board support, and intermittent donations; it has cycled through multiple directors since 2020.
Budget status and next steps: The FY27 budget ordinance (26-08) was introduced as written but postponed for further consideration. The assembly did not adopt the MOA or finalize the education-services amount at this meeting; members asked for more detailed backup material that includes DPLC’s proposed budget and the MOA terms. Staff said those documents will be included for the next meeting so the assembly can consider whether to fund the MOA or to re-route support through the nonprofit grant program.
What this means locally: Assembly members framed the request as workforce and economic development policy, not only social service spending: local employers and families rely on stable childcare to work and retain staff. The borough’s nonprofit grants program historically caps awards at smaller amounts; an MOA or a dedicated budget line would allow larger, predictable support for a licensed early-childhood provider if the assembly chooses to proceed.
No final funding decision was taken at this meeting.
