
The Juneau School Board will take public testimony Thursday as it works on building out a budget. This comes as a preliminary budget projects a $5.37 million dollar deficit.
Nicole Herbert is the CFO for the district. She said during a board retreat last month that the deficit could be covered in a couple of ways. One method is taking from savings.
“We’re looking at needing about $5.3 (million) in fund balance and/or reductions in services provided to maintain our current level,” she said.
The preliminary budget includes all budgeted positions from the current fiscal year and assumes all employees will opt into the district funded health insurance plan. But some of those positions are not filled, and not all employees enrolled in the insurance plan this year.
That means there are unspent funds that can go into the district’s savings, which is projected to be $7.8 million at the end of the fiscal year in June. Those funds are not used to cover any expenses in the preliminary budget yet.
The projection also doesn’t include how union contracts and non-personnel costs could affect the budget. The district has not yet reached a new agreement with two unions representing teachers and support staff.
The preliminary budget makes a couple assumptions when it comes to city funding: one, that the City and Borough of Juneau will fund the maximum of what state law allows, which is about $35.8 million. And, two, that the city will also allocate more than $2 million for non-instructional programs, including student activities, transportation, food services and preschool.
The city is looking at an estimated $10 to $12 million gap in its own budget beginning this July. Because of that, Superintendent Frank Hauser said it’s uncertain how much money the city will contribute to the school district.
“The city might not have as much money to support the school district,” he said. “And so we’re not sure if that instructional funding is going to be coming back to the district, or even if maximal contribution is going to be coming to the district.
The board also decided to take universal free breakfast out of the preliminary budget. The board approved a budget without the program for this school year and added it back in September after the Alaska Legislature restored about $50 million in education funding through a veto override.
The public forum will take place Thursday at 5:30 p.m. at Thunder Mountain Middle School. Community members can also testify online through Zoom and by emailing the district at budgetinput@juneauschools.org.
During the forum, the district plans to give a presentation on the budget before taking testimony from school principals and the public. Chief of Staff Kristin Bartlett said in an email the district also plans to release Balancing Act next week, but no date is confirmed yet. The online tool allows people to try building a balanced budget and provide feedback for how they think the district should be funded.
According to the budget calendar, the board plans to approve the budget by March 12. City code requires the board to submit a budget to the Juneau Assembly by April 5.





