Why One-Time Funding Won’t Solve Fairbanks’ Education Budget Crisis: Exploring Sustainable Solutions

Opinion: Mayor Grier Hopkins has proposed a $60 million allocation for education in the Fairbanks North Star Borough, plus an additional $5 million for next year. This shows a strong commitment to enhancing our schools.

This funding aims to create stability in the school budget, which is important as the Fairbanks North Star Borough School District faces a $16 million deficit. The district has already made tough choices, like closing three elementary schools and outsourcing custodial services, to deal with financial challenges.

However, there are concerns about whether this funding plan is sustainable. The proposed budget is higher than what was allocated the previous year. In May 2024, the Assembly set aside $58 million for education, including some one-time funds. Mayor Hopkins’ plan relies significantly on these one-time reserves. If these funds run out, the borough might face financial difficulties, leading to possible cuts in essential services or sudden tax increases to fill the gaps.

The larger picture isn’t clear either, as state education funding is still uncertain. Governor Mike Dunleavy has introduced a bill that suggests an increase of $117 million for the 2025-2026 school year and $181 million for the next year. However, these proposals need approval and are not guaranteed.

Past experiences show how unpredictable state funding can be. The Alaska Legislature has faced issues with education budgets, and vetoes from governors have created additional uncertainty. For example, last year’s education funding bill was vetoed, and the Legislature couldn’t override it by just one vote. This history makes it risky to depend on state decisions for local budgets.

There’s also frustration among school board members and Assembly members about how the budget process works. The school district has to put together its budget without knowing how much they will receive from local or state funding, which usually gets finalized later in May.

In light of these uncertainties, it’s wise for the Borough Assembly to be cautious. Committing much local funding to education before knowing what the state will provide could put the borough at risk. A better approach might be to closely watch the state legislation progress and wait for clearer outcomes before making local funding decisions.

Additionally, the school district should keep looking for ways to save money within its existing budget. Closing schools and outsourcing services are steps in the right direction, but a detailed review of spending could reveal other opportunities for savings. Making sure current funds are used effectively is crucial before adding more money.

While Mayor Hopkins’ push for education funding is commendable, it may be best to wait until we have more clarity on state funding and the school district’s financial practices. This careful approach can help protect the borough’s finances while still aiming to meet our community’s educational needs.