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A financial review included in the September 23 board packet projected a roughly $4.48 million FY2027 year-end deficit, despite the adopted budget’s balanced projection. As of August 19, it also identified $4.28 million in unbudgeted encumbrances, $2.53 million in over-budget encumbrances and $8.60 million in additional highly likely costs; the estimate was preliminary and assumed no further unanticipated expenses.
The board agenda listed an update to BP 6146.1, High School Graduation Requirements, for action; the packet does not establish whether it was approved. The superintendent’s report says students entering ninth grade after July 1, 2027 would need to complete and pass a state-developed civics curriculum and assessment to graduate, subject to specified exceptions.
At its September 21 special meeting, the Dillingham City School District board is scheduled to give a first read to a draft Work Experience Education policy and regulation. The proposal would allow students enrolled in an alternative program to earn elective credit through approved work-based learning, including summer work with advance approval.
Administration is asking the board to formally confirm the grade spans already in effect for 2026–27: Houghtaling Elementary School K–5, Schoenbar Middle School 6–8 and Revilla Jr./Sr. High School 6–12. The agenda describes this as a proposed approval of the post-consolidation configuration, not a completed board action.
The Board approved a revised FY 2026–27 budget memo 5–2, directing $3.7 million to tutoring, credit recovery, school-based health centers, and school personnel. It also commits $17.61 million in remaining HB 263 funds to preserve about 123 teacher positions for FY28, down from 144 in the earlier version.
The Board of Education's meeting packet includes a new FY26-28 Collective Bargaining Agreement between the district and the Kenai Peninsula Education Association (KPEA), covering all certificated teachers districtwide. Key changes include a potential 1-2% salary schedule increase tied to state funding levels, a $1,000 one-time payment to eligible employees in September 2026, new January 2027 health plan changes (60% out-of-network reimbursement, 80% dental basic care, no fourth-quarter HRA deductible rollover), a new sick-leave cash-out benefit for 20-year veteran employees unable to use TRS Tier III, and new provisions for classified-to-certificated salary credit and special education workload support (paid Saturdays for IEP documentation).
The Board approved adding preschool to Martin Luther King Jr. Technical High School’s served grades, an eligibility step for Alaska Reads Act funding. The recap says funding depends on ending the tuition requirement, but does not say the tuition change itself was approved.
At its September 14, 2026 meeting, the board completed second readings and adopted revisions to BP 1114 (Communication Using Electronic Media) and BP 5131.9 (Academic Honesty), and gave first reading and action approval to a brand-new Administrative Regulation, AR 5131.9 (Academic Honesty), all developed specifically to address AI-related guardrails for students and staff.
A Memorandum of Agreement between the district and the Kenai Peninsula Administrators Association (KPAA) separates administrators' health care bargaining from the KPEA/KPESA joint plan and changes several health-plan terms effective October 1, 2026, including reduced dental coverage (80%), removal of a fourth-quarter deductible rollover, a new 60% reimbursement cap for out-of-network physician visits, and a one-time $1,000 payment to eligible employees.
The board packet includes a proposed FY26-28 collective bargaining agreement between the district and the Kenai Peninsula Educational Support Association (KPESA), covering wages, health benefits, leave, reduction-in-force procedures, and working conditions for support staff (aides, custodians, secretaries, nurses' assistants, and similar positions) through 2028.
Alaska's Commissioner of Education approved placing Nikolaevsk Charter School on the FY2027 state funding-eligible schools list, formalizing state per-pupil funding (including a school-size adjustment) for both its brick-and-mortar and correspondence programs, pending confirmation of enrollment counts in the October 2026 count period.
The September 14, 2026 work session includes first reads of proposed Board Policy 6146.1 (High School Graduation Requirements) and BP 6178.1 (Work Experience Education), alongside a review of alternative pathways curriculum, as part of a broader discussion on alternative pathways for students.
The district's Health Care Task Force reported to the board that it is not yet ready to recommend whether to transition from the current self-funded health insurance plan to a fully-funded plan. The Task Force is still gathering data on the district's potential 'run-out claims' liability and the absence of Terminal Liability (tail) coverage under its stop-loss policy with Sun Life, and now expects to bring a recommendation in early November 2026.
As of September 4, 2026, K-12 enrollment stood at 3,678 students \u2014 89 students (2.36%) below the district's FY27 budget projection of 3,767 and 113 students (3.44%) below last year's actual enrollment. Kindergarten enrollment dropped sharply (down 51 students, -21%).
ASD administration outlined a plan, discussed with the Mayor's office, to return three excess properties -- Abbott Loop, Campbell STEM building, and the Westpark property -- to the Municipality of Anchorage. Abbott Loop and Campbell have already been approved for return; a formal Board vote on demolishing Abbott Loop (using $4 million in leftover bond funds originally intended for fire suppression) is planned for an October board meeting, with demolition targeted for spring 2027. Campbell STEM is being prepared for winter hand-off, and Westpark's return would require Board approval with the Assembly considering returning sale proceeds to ASD.
Administrators presented a non-action proposal (Memorandum #037) to the Board detailing how ASD would spend approximately $32.19 million in one-time HB 263 'waterfall' state funding: $14.58 million on 2026-27 investments (including restoring emergency reserves, charter school funding, student supports, snow removal/security, and student activities/transportation) and $17.6 million retained in fund balance to reduce the projected FY28 deficit from about $40 million to about $26.66 million.
The Board approved DEED-mandated revisions to the FY2027 operating budget on August 26, 2026, after the state identified $366,651 in duplicated/disallowed in-kind revenue, missing Energy Relief Grant budgeting, and other errors; net revenue was corrected upward by roughly $109,250 (later refined to $448,504 in a follow-up document) with expenditure reallocations including funding for the new Houghtaling kindergarten position.
A Budget Status Update presented to the Board on August 26, 2026 projects the district will end FY2027 with a shortfall of approximately $4,481,576, driven by unbudgeted encumbered expenditures (about $4.28M) and over-budget spending (about $2.5M) across special education, health insurance, and staffing lines, plus unresolved risk areas including pupil transportation and food service funds with no developed budget.
At the August 26, 2026 meeting, the Board approved an amendment to the FY2028-2033 Six-Year Capital Improvement Plan that revises Project No. 2, the Valley Park Code and Life Safety Upgrades, from an estimated $7,500,000 down to a Phase 1 estimate of $1,500,000, addressing only the most urgent egress and accessibility corrections at the shared Ketchikan Charter School/TSAS building.
The district's Health Insurance Task Force presented comparative proposals from USI (current broker, self-funded at $6,957,700), HUB International (self-funded $7,219,377 / fully funded $7,707,344), and the Public Educator Health Trust (fully funded $5,813,265) at the August 26, 2026 board meeting, continuing evaluation of a change to the district's employee health coverage model.
At the August 14, 2026 special meeting, the Board voted 5-0 to approve hiring an additional kindergarten teacher at Houghtaling Elementary School to address increased enrollment and high class sizes, adding a position not previously included in the adopted budget.
Following adoption of the FY27 budget, the Alaska Legislature's HB263 and other sources are expected to bring AEBSD approximately $353,222 in one-time supplemental (Foundation Waterfall) funds and $205,571 in energy-relief funding, plus the Borough increased its local contribution by $100,000 to $1.4 million. Superintendent recommends using much of this one-time money for strategic, non-recurring investments (vans, weight rooms, building improvements, safety/security) rather than new recurring costs.