Funding structure, how it compares to peers, and where major projects stand.
How is Sitka School District funded, and who decides?
State formula funding is shrinking; the city fills part of the gap
Like every Alaska school district, Sitka gets most of its money from the state's per-student Foundation formula, which pays less every year enrollment falls. Sitka's city and borough government can then add its own money on top, up to a cap the state sets. A five-member elected School Board sets the district's own budget and policy within that funding; three of its five seats are on the October 2026 ballot, including two seats currently held by people the board appointed rather than voters elected.
State funding fell about 8% for FY2026
State Foundation formula revenue dropped from $12,741,899 to $11,748,355, a loss of $993,543, mainly because enrollment kept falling.
Enrollment has dropped by about a quarter since 2013
Districtwide average daily membership fell from 1,313 students in FY2013 to a projected 1,000 in FY2026, and the state formula pays by the student.
The city and borough is the flexible piece, up to a state-set cap
Sitka's city/borough government raised its direct appropriation to the district by $120,570 for FY2026, and its FY2027 budget (adopted May 2026) set total support to the district at roughly $9.85 million, up from about $9.37 million the year before.
Two of five board seats are currently filled by appointment, not election
Matt Potter and Kat Richards were appointed by the board in June 2026 to fill vacancies; both seats, plus a third, are up for election on October 6, 2026.
Falling state funding does not mean the district's finances are in disarray: the FY2025 independent audit gave the financial statements a clean opinion, and year-end reserves came in far healthier than the district's own 2024 budget planning had feared ($1.64 million unassigned versus a feared $99,000).
City/borough appropriation in the district's own FY2026 budgetverified
7,856,132 USD
Recorded on the district's own books; the city/borough's own FY2027 budget separately reports a broader 'support to schools' total of about $9.85 million that is not directly comparable (see below).
City/borough's own consolidated 'support to schools' figure, FY2027context
9,849,545 USD
The city's own accounting category; broader in scope than the district's 'City/Borough Appropriation' revenue line, so treat as a separate figure rather than a year-over-year match to the metric above.
Unassigned fund balance, School Operating Fund, June 30, 2025verified
1,644,749 USD
Total General Fund budget per projected student (FY2026)context
23,443 USD per student
Calculated: FY2026 General Fund total ($23,442,724) divided by projected enrollment (1,000 ADM). This is a whole-fund total, not a per-student allocation the district hands schools directly - it includes districtwide costs like special education, transportation-adjacent administration, debt, and central office.
Major projects
Fixing repeat financial-control weaknesses flagged by the auditor
Target dates passed; resolution unconfirmed
The district's corrective action plan for its FY2025 audit findings set a February 2026 target for improving year-end account reconciliation and a July 2026 target for requiring manager sign-off on all payroll actions. Both target dates have now passed. Whether the fixes held will not be publicly confirmed until the FY2026 audit is issued.
Next: FY2026 independent audit (not yet published as of this update)
FY2025 audit issued, repeating both FY2024 findings
Target date for improved account-reconciliation process
Target date for requiring payroll approval documentation
Funding
General fund operating budget (Business Office / District Administration)
City and borough's annual decision on how much to fund schools above the state minimum
FY2027 cycle complete; FY2028 cycle begins in 2027
Each spring, the Sitka Assembly decides how much city/borough money to add to the district's state formula funding, up to a state-set cap. For FY2027 the Assembly again funded close to that cap, setting total support to the district at roughly $9.85 million in the budget it adopted on May 26, 2026.
Next: Assembly begins its FY2028 budget work session with the School Board, typically in winter 2027
FY2027 city budget ordinance passed first reading
FY2027 city budget ordinance adopted on final reading
Funding
City and Borough of Sitka general fund
Local elections & school board members
Elections & votes
Board electionScheduled
October 6, 2026 Sitka School Board election
City and Borough of Sitka
Three of the board's five seats are up: two regular three-year terms and one one-year term filling the remainder of a departed member's (A. Williams) unexpired term. Two current members holding 2026-expiring seats (Matt Potter and Kat Richards) were appointed by the board in June 2026 rather than elected, so this election is voters' first chance to weigh in on those seats.
City and Borough of Sitka Assembly adopts FY2027 budget funding schools at roughly $9.85 million
City and Borough of Sitka · $9,849,545
As part of its annual general fund budget ordinance, the Sitka Assembly set the city's FY2027 (July 2026-June 2027) support to the school district at about $9.85 million, up from about $9.37 million budgeted for FY2026. This is the Assembly's own consolidated 'Support Payments - School' figure, which is broader than the school district's own budget line for the direct city appropriation, so the two are not directly comparable dollar-for-dollar.
Board meeting agendas, minutes, and packets for this district are hosted exclusively on a vendor platform whose terms of service prohibit automated collection, so this page draws instead on budgets, audited financial statements, and the strategic plan the district posts directly on its own website, plus the city and borough's own public legislative record for local funding and election context.
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