The Anchorage School Board is trying to figure out what to do after discovering a $16 million shortfall in next year's budget.

School Board Members discussed various ways to offset the big deficit at the school board work session meeting, Nov 2nd. School leaders say increased utility costs, transportation and contract costs all contributed to the growing budget deficit.

Based on revenue projections, with slightly more money coming in from the state and a flat funded amount from the municipality, the school board has from now until the end of January, to introduce a balanced budget.

The administration asked school board members at the work session if they had any suggestions on generating more revenue to reduce the budget gap. "Will they authorize to use the fund balance to bridge some of the gap and will they allow to raise fees for certain other things," asked Superintendent of ASD, Carol Comeau.

One solution leaders are looking at includes the school savings account, also known as the fund balance, which totals about $24 million. "I would be willing to bring us down to 3 percent, which is essentially spending 4.5 million of our undesignated fund," said school board member, Jeff Friedman.

The real question was how much to take out? "I'm not as comfortable as Mr. Friedman is, in terms of reducing that down, because I know emergency's happen, stuff happens and I do want to be in a position where we run out of money," said school board Vice

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President, Tim Steele.

Even increasing fees like musical instruments and rental facilities will help, but it is not enough. "It's just a drop in the bucket, we don't bring that much in fees to begin with, so an increase in fees will not be a huge benefit to us," said Friedman.

School leaders say what this leaves them with is the biggest slice, which will mean substantial cuts from programs. "I don't think anything is unimportant but we are going to have to look at where we are spending money and say this is less important than that," said Friedman.

The school board agreed to spend down to 3.5 percent of the fund balance.

According to the ASD preliminary financial planning, if city leaders choose to go to the property tax cap, the deficit would be cut to $7 million.

The school board will vote on the administrations recommendation to set the upper limit of the budget on Monday, Nov. 9th.

To contact the Newsroom, call 907-274-1111.

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