Alaska School District Cost Study

Kenai Peninsula Borough School District Impact Summary 1/16/03
  • On January 16, 2003 , the Legislative Budget and Audit Committee accepted and made public the school district cost factor study. The publication titled "Alaska School District Cost Study" was prepared under contract by the American Institutes for Research.

  • The report reflects a substantial change in the area cost differential for the Kenai Peninsula Borough School District ; a change from a factor of 1.004 to 1.03. The increase validates what has been said all along - KPBSD has been harmed by the cost factor in the current foundation formula. Though less than the District has independently calculated for the cost of doing business in relation to the rest of the state, the 1.03 factor would result in significant additional state funding.

  • Should the findings become reality, a very rough estimate of the revenue generated by this study would be an additional $1.7 Million for KPBSD (includes local contribution) in FY 04.

  • Implementation of the proposed district cost factors from the report will require the legislature to pass a law adopting the recommendation. The deliberations regarding this report are likely to be emotional and heated statewide. KPBSD will be intimately involved in the conversations.

  • The recommendation in the report that the findings be phased in over a five year period (20% per year) would be of concern to KPBSD.

  • With the current budget situation of a $2.9 M shortfall after the reduction of 56 teachers (due to declining enrollment and increased PTR), any additional funding would be appreciated. However, it is unlikely that any of the actual dollar amounts coming to districts through changes to the current formula will be settled prior to the end of the legislative session (May 21st). The District is obligated to move forward with balancing the budget without this additional revenue being included.