How a small Alaska fishing-town district is funded by the state and the city, who decides, and why it has run a deficit two years running.
Why does a district with growing enrollment keep running a deficit?
Underfunded by the state, and recently by the city too
Alaska pays districts through the Base Student Allocation (BSA), a fixed per-student amount set by the Legislature. Cordova's BSA was $5,960 per student going into FY26, essentially unchanged in real terms since 2017 despite inflation, so the Legislature has repeatedly patched the gap with one-time top-ups rather than a lasting increase. On top of that, Cordova is a city school district: Alaska law also requires the City of Cordova to contribute, using a formula tied to local property values with a legal minimum and maximum. That city contribution dropped $90,000 for FY26 as the city managed its own budget pressures. Together, a flat state formula and a shrinking city contribution produced a projected $1.48 million deficit for FY26, similar to FY25's gap.
The state sets the per-student amount, not Cordova
The BSA is fixed by the Legislature and applies statewide; Cordova cannot raise its own per-student state funding and can only lobby for a permanent increase, which the district's own school-board-authored advocacy materials describe as unresolved since 2017.
The city is legally required to help fund schools, but recently gave less
The City of Cordova's contribution is set by a state formula with a minimum and maximum tied to local property and other tax revenue; the city budgeted $90,000 less to the district for FY26 than the prior year, even as the district asked for less than the legal maximum out of consideration for the city's own finances.
The gap has been closed with savings and vacancies, not program cuts, for two years running
For FY25 and FY26 the district covered roughly $900,000-$1.5 million shortfalls by leaving teacher and aide positions unfilled and drawing down its fund balance, plus an unusual one-time gift from the Native Village of Eyak in FY25 that covered food service and student activities. Food service, activities, and course offerings have been preserved so far.
A state cap limits how much the district can save for a cushion
Alaska law (AS 14.17.505) limits an unreserved school district fund balance to 10% of expenditures. In September 2025 the board passed a resolution asking the Legislature to raise that cap, arguing it no longer matches recommended public-finance practice.
None of this reflects mismanagement: independent audits found no findings for either FY24 or FY25, and Cordova Jr/Sr High School was ranked Alaska's #1 high school by U.S. News two years running even through the tightest budget years.
Where the district stands
District enrollmentcontext
362 students
2023 federal count across 3 schools; district staff have described enrollment as growing in recent board meetings even as some other rural Alaska districts shrink.
State Base Student Allocation (BSA)verified
5,960 $/student
The per-student amount used in the district's FY26 foundation-funding calculation, before any one-time legislative top-up.
Projected FY26 budget deficitverified
$1,480,000
Similar in size to the FY25 deficit; closed through unfilled positions, a fund-balance draw, and one-time revenue rather than program cuts.
City of Cordova FY26 contribution, change from prior yearverified
-$90,000
A cut to the city's direct appropriation to the district, on top of the state funding shortfall.
Total annual district budgetverified
$8,000,000
Described by the district as "exceeding $8 million" in a September 2025 board resolution on grant-purchasing authority.
Approximate spending per studentcontext
22,100 $/student
A rough calculation: the roughly $8 million total district budget divided by 362 students. This covers all district operations, not just classroom instruction.
State cap on district fund balance (savings)verified
10 % of expenditures
Set by Alaska Statute 14.17.505; the board asked the Legislature by resolution to raise this cap in September 2025.
Schools in the districtverified
3 schools
Cordova Jr/Sr High School, Mt. Eccles Elementary, and the Cordova Correspondence School (homeschool/independent-study program).
Major projects
Long-range plan for a new or renovated Cordova Jr/Sr High School
planning
The district and the City of Cordova, which owns the CHS building, began early talks in late 2024 about a possible renovation or new construction for the aging junior/senior high school. As of mid-2026 there is no funding source, cost estimate, or approved plan — only an early-stage, multi-year planning conversation about pursuing a state Capital Improvement Project (CIP) grant.
Next: District and City coordination toward a formal CIP grant application; no submission date has been set.
Safety-Facility Committee begins reviewing the state's CIP grant application process with the City of Cordova
Board discusses capital-fund planning for the project without a committed funding source or timeline
Funding
Unfunded; a future state Capital Improvement Project (CIP) grant and/or municipal bond are under discussion
No public cost estimate exists yet.
CHS gym floor refinishing
proposed
The CHS gym floor, installed in 2018 and used daily for school and community events, is due for the industry-standard 5-7 year refinishing. The Safety-Facility Committee reviewed a roughly $48,000 quote in December 2025 but had not identified a funding source.
Next: Board identification of a funding source and formal approval.
Safety-Facility Committee reviews a ~$48,000 refinishing quote from Alaskan Industries
Funding
A district capital project fund; the specific fund had not been identified as of December 2025
Mt. Eccles Elementary fire alarm panel replacement
recommended
The district's maintenance director recommended replacing Mt. Eccles Elementary's outdated fire alarm panel, which triggers false alerts and uses parts that are no longer available, at a cost of $18,210.
Next: Board approval, with installation planned for summer 2026.
Safety-Facility Committee reviews the $18,210 replacement quote and recommends moving forward
Funding
District capital projects account
Demolition of a derelict outbuilding behind CHS
recommended
The Safety-Facility Committee reviewed competing demolition quotes for a derelict outbuilding on CHS property, citing it as a growing safety hazard, and recommended a contractor (Cordova Power Sports) for its ability to complete the work before the busy summer season.
Next: Board vote expected at a subsequent regular meeting; not confirmed in the collected record.
Safety-Facility Committee reviews demolition quotes and recommends Cordova Power Sports
Funding
District capital projects fund
Local elections & school board members
Elections & votes
Board electionScheduled
City of Cordova regular municipal election - school board seat
Cordova
Cordova's school board members are elected at the City of Cordova's regular municipal election, held annually in March (an unusual cycle compared to most Alaska districts' fall elections). At the March 3, 2026 election, Malani Towle won a board seat; she was sworn in and seated at the board's March 19, 2026 meeting, succeeding outgoing member Dave Glasen.
City of Cordova regular municipal election - next school board seat(s)
Cordova
Cordova holds its regular municipal election, including school board seats, in March each year. The next election is expected in March 2027; the City Clerk had not yet published the exact date, seats up, or candidate filing deadline as of this review.
Figures come from the district's own board and committee meeting minutes, work-session notes, and board resolutions collected from the district's public Google Drive meeting archive (linked from the district's official board page), plus NCES Common Core of Data enrollment figures and the district's own website for identity details.
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