After weeks of public comment and debate, Nome council sets $3.0M FY27 school contribution

The City of Nome council approved a resolution setting the city’s FY27 contribution to the Nome School District at $3,000,000 after an extended work‑session debate about budget timing, staffing and the constraints of an approximately $1.08 million operating gap in the city’s working draft budget.

Finance staff presented a working FY27 budget that projects total operating revenue (before a fund balance appropriation) of about $18.6 million and total projected expenditures of roughly $19.7 million, leaving a draft net operating deficit of approximately $1,076,000. Nikki (finance staff) told the council the draft assumes a mill rate of 11.5 and a sales‑tax projection that increases by about 19 percent (to roughly $9.4 million), while interest earnings are expected to decline. The draft also includes a $3.0 million contribution to the Nome Public Schools, composed of a mandatory $1,549,913 and an additional $1,450,087 to reach the $3.0M figure.

Superintendent Jamie Burgess told the council that the school district welcomed an increase from earlier proposals but still faces a shortfall (Burgess said the district is about $500,000 short of what it needs based on current budgets). Burgess warned that insufficient funding could force program cuts, unfilled positions and multigrade classrooms that would harm student services.

Council members debated whether to act quickly. Several members said the school board’s request triggered a statutory response window and that an early city commitment helps the district meet hiring and contracting timelines. Other council members urged caution because the city had just received the first draft of its operating budget that evening and the draft showed a roughly $1.08M gap; they argued the council should follow its normal budget review process before committing additional funds.

A motion was made and seconded to amend the draft resolution (initially written for $2.7M) to set the contribution at $3.0M. The amendment carried on a roll call motion (the amendment and the main motion as amended both passed). The roll call on the amendment showed a majority in favor; the subsequent roll call on the main motion as amended likewise produced a majority and the resolution passed.

Budget highlights discussed in the session included personnel costs and health insurance as major expenditure drivers, a proposed round of staffing changes across several departments, a $150,000 transfer from the vehicle replacement fund for public works vehicles and additional transfers for capital, compactor debt service and cemetery equipment. Staff flagged potential additional revenues (e.g., landfill fee increases and other revenues to be considered) and said departments will present more detailed line‑item budgets in follow‑up sessions.

Other actions taken during the meeting included approval of a mayoral support letter for Nome Preschool and a separate resolution supporting funding for local emergency planning committees across Alaska. The council also asked staff to prepare clearer taxi‑permit guidance and an informational packet for prospective operators.

The council moved into executive session at the end of the work session; no public votes were expected afterward. The city manager said the VA plans to open a local veterans administration office and a formal announcement is expected in July.