03/05/2026
The Kenai Peninsula Borough School District Board of Education held a series of work sessions and meetings over two days earlier this week to review, among regular business, proposed budget reduction scenarios for fiscal year 2027. The district is currently facing an $8.6 million deficit due in part to reductions in anticipated borough and state funding.
District administration presented to the board three budget scenarios for consideration. Scenario one, what district superintendent Clayton Holland called the “worst case scenario” and the reality that the district is staring down, assumes that the district will receive the level of FY27 funding currently being proposed by the state and borough — approximately $141.7 million together. Scenario two counts on the district receiving the same level of borough funding in FY27 as they did in FY26, after the assembly voted to fund schools to the cap. Total revenue would equal approximately $145 million, with $62.3 million coming from the borough. Scenario three includes the maximum allowable FY27 funding from the borough — about $68.6 million — and puts total revenue at $151.3 million.
During the board’s quarterly finance work session on Tuesday, board members gave consensus to move forward with scenario two as a starting point for balancing the budget. Some board members said that working off of this scenario, which includes an increase to current-level borough funding, would show a strong stance to the borough assembly of the district’s needs.
The proposed budget drafted following Tuesday’s work session will be presented again to the school board at the next meeting in April, with the intent that the board takes action on it at that time.
Find all budget materials and recordings of the March 2 and March 3 meetings on the KPBSD BoardDocs website.
The next regular KPBSD Board of Education meeting will be held April 6 in Homer.
The Kenai Peninsula Borough School District Board of Education will review the budget again in April with the intent to take action.