Latest Juneau School District budget update
The Juneau School District has launched a special newsletter to keep the community informed of ongoing efforts to address the shortfall in the current FY24 budget and develop a new budget for FY25. The most recent issue is included below.
Newsletter updates are available after each budget meeting. To receive these updates as soon as they are available, download the free Juneau Borough Schools App from the App Store or Google Play and follow “District”. You can also visit the Juneau School District website and click on the 2024 Budget Information tile to read the newsletter as a PDF.
February 19 JSD Budget Update
Reorganization/Consolidation models, first and second readings
The Board of Education held a first reading for a school reconfiguration plan at the Tuesday, February 13 regular meeting. The Board identified three models of interest, which were then discussed further at the work session on Saturday, February 17.
No decisions have been made yet, but the Board has asked for more details on the following idea: Reduce the footprint of the district facilities (vacate buildings), while keeping the JD and TM school buildings open. A model that was proposed by the board on Saturday is:
- Six K-6 grade elementary schools with preschool programs
- One 7-9 grade junior high at JD, along with optional programs
- One 10-12 grade high school at TM
Early learning programs: Integrated Preschool, Head Start, Children’s House and Kinder Ready classrooms are included in plans for next year, but locations could change depending on the final option chosen.
Optional programs: All the concepts maintain optional programs, i.e., Tlingit Culture Language and Literacy, Juneau Community Charter School, Montessori Borealis Public School, Yaaḵoosgé Daakahídi High School, and HomeBRIDGE, although the location, number of staff and/or class sizes may change depending on the adopted plan.
Reconfiguration is intended to maintain as much support, opportunity, and programming for students as possible. Declining enrollment, reflecting statewide demographic changes; rising costs; and relatively flat state funding have been tightening the school district budget for years. Juneau has reached the point where school reorganization is necessary, even if there weren’t a budget crisis.
The second reading to adopt a plan is scheduled for a special meeting on Thursday, February 22. Public testimony will be heard at the meeting. Written comments can be sent to [email protected].
Loan considered to address current and ongoing budget deficits
The CBJ Assembly is considering a proposed 0%, five-year loan to the district of up to $4 million. The CBJ Assembly has also agreed to consider a shared-services agreement to provide for non-instructional costs attributed to the maintenance, utilities, and insurance of public facilities owned by CBJ and to provide for non-instructional costs for operations related to community-sponsored events, activities, and facility rentals.
This proposed plan would assist in balancing the current and ongoing deficits by the June 30 deadline. The district would have to begin paying back the loan in FY26.
The FY25 budget projection shows another significant deficit
Even after adopting a plan to resolve current and ongoing deficits, the district faces another large shortfall next year.
The district expects lower overall revenues due to reduced state funding, decreased enrollment, and increasing operating costs. Continuing operations at the same level as they are now, with no changes, would result in a projected deficit of over $9 million.
The district must have a balanced budget, so the Board of Education must decide how to reduce expenditures. A budget for FY25 must be submitted to CBJ by April 4, 2024.
Pupil-teacher ratio in schools will likely rise next year, but less so with consolidation
In order to adopt a balanced budget for next school year, the district will need to significantly reduce its largest expenditure: personnel costs. When two schools are consolidated, some of the duplicate staffing positions, such as principals and office staff, would no longer be required, which would reduce costs. PTR will still likely need to rise but less so following consolidation.
Next steps
- Decision on school reconfiguration and closure
Reconfiguration discussions and second reading are scheduled for Thursday, February 22.
- Present a FY24 winter budget revision
The Board of Education must take action to revise the current budget, and that budget must balance.
- Develop a balanced budget for FY25
The board must develop and approve a budget for next year to be submitted to the CBJ Assembly by April 4, 2024.