Fairbanks North Star Borough School Board adopts FY27 budget, assumes half of one-time state aid

The Fairbanks North Star Borough School Board on June 15 unanimously approved Resolution 2027-01, adopting a fiscal year 2027 budget for all funds totaling $241,694,443, including an operating fund of $206,369,926. The special meeting, called at 5:30 p.m., featured a presentation from Chief Operations Officer Andy Degra and a round of board questions about revenue assumptions, bargaining costs and the potential fiscal effect of a new charter school.

Degra told the board the approved budget reflects $8,870,339 in net adjustments and assumes 50% of a $144 million one-time appropriation the legislature approved this year — a $6,378,168 assumption for the district — while cautioning the legislatureand governor could change that total before funds are available. "We're assuming half of that revenue which is 6,378,168," Degra said, adding that the full amount could still be transmitted or entirely vetoed.

The administration also added roughly $1.9to2.0 million for employee stipends that the district has offered to FEA and that it is extending to ESSA and non-represented staff; Degra said those dollars are budgeted now but would remain in fund balance if bargaining is unresolved and no agreement triggers retroactive pay. He summarized changes on both the revenue and expenditure sides as resulting in an increase to fund balance of roughly $3.8 million versus the previously planned $733,000 utilization.

Board members pressed administration for downside scenarios if the governor vetoes the one-time funding. Degra provided back-of-envelope calculations showing the district would revert to drawing on reserves if the dollars do not materialize and said the districtafter accounting for recent lapsesprojects general-fund reserves in the range of $4 million to $6 million, subject to pending risk-fund figures due in August or September.

Members also asked for multi-year cost context for labor proposals. Degra said the FEA proposal has been costed at about $83 million over three years and ESSAthe portion costed so farat roughly $49 million over three years. Board members emphasized these are multi-year totals and noted that each 1 percentage-point concession districtwide translates to roughly $2to3 million in annual cost.

The board discussed the fiscal impact of the proposed Pearl Creek Charter School, which Degra said would generate an allocation of about $3.8 million under the foundation formula for an estimated 352 students but would still yield a net district cost of about $2.0 to $2.5 million depending on staffing shifts and state revenue outcomes. "The BSA doesn't follow the student," Degra said while explaining that most district costs are fixed and that adding a new school often increases net costs rather than reducing them.

After discussion and brief comments praising investments in educators and classrooms, board member Miss Dulian moved to approve Resolution 2027-01. The motion was seconded by Miss Carol Hubard. On a roll-call vote called by the clerk, the recorded votes were: Miss Carol Hubard, yes; Mr. Doran, yes; Miss Huitt, yes; Miss Maple, yes; Mrs. Hull, yes; Miss Julian, yes; and Mr. Burgess, yes. The motion carried unanimously.

The meeting closed with board members thanking COO Andy Degra for eight years of service; Degra said he will leave the district at the end of the month. The board adjourned without further action.