By SHANNON HAUGLAND
Sentinel Staff Writer
On the heels of the announcement by Canada to extend its cruise ship ban through 2021, the Assembly was not prepared to commit to a funding level for schools at its Thursday night meeting with the School Board.
The closure of Canadian ports threatens to shut down major cruise line voyages to Alaska for the second year in a row, causing losses in the many millions of dollars to Alaska businesses, and tax revenue to municipalities.
Some Assembly members at Thursday night’s meeting favored school funding at the same level as last year’s, while others held out for the maximum (“the cap”) allowed under state law. In the end they all decided to wait a few more weeks so the effects of the cruise ship announcement can be taken into account.
“I need a fuller picture of what the city budget will look like,” Assembly member Crystal Duncan said at the end of the meeting. “I support the school district but just feel tonight is not the night to vote.”
Another Assembly-School Board meeting was scheduled for 6 p.m. Feb. 25 at Harrigan Centennial Hall.
Thursday’s meeting came only a few hours after Canada announced its cruise ban will extend through February 2022 (see Associated Press story).
City Administrator John Leach said today that in the next two weeks not much will change with the revenue projections, which were already on the conservative side, but more may be known about federal stimulus available for municipalities. A massive COVID relief bill, with funding for local governments, has been introduced in Congress.
Leach said today that as soon as he heard the cruise ship announcement, he contacted the city’s lobbyist in Washington, D.C. The general message to the lobbyist, Blank Rome, was: “If we can’t find a way to get ships to Alaska we’re going to need some large fed stimulus package. We’ve done this for 18 months already (without cruise ships) - and we thought we were at the end, and I don’t know if we can do this for 30 months.”
City funding for the school district is the single largest expense in the general fund. It is also one of the core responsibilities of the municipality, along with infrastructure and public safety. Before the cruise ship announcement, city staff had hoped to emerge from Thursday’s meeting with a decision on the figure for school support.
The city funded to the cap last year but the state has increased the cap since then. Funding to the cap would cause an estimated budget shortfall of $1.9 million, Leach said in his memo for the meeting.
A number of comments at the meeting related to schools as “an investment” in the future, rather than an expense. School Board members prepared comments about the work that has gone on since the pandemic hit to keep kids in the classroom for in-person instruction, improve options for learning from home, and to keep class sizes small both for safety and education purposes.
“I couldn’t be more proud of our educational system and educators,” said School Board member Blossom Teal-Olsen. The district budget is lean, and the district will make good use of whatever funding amount is approved, she said, but asked the Assembly to approve funding to the cap if possible.
The F/V Ocean Cape is hauled out this afternoon at the Halibut Point Marine Services Yard as work on the expansion of the Old Sitka Dock Terminal continues. Work is also being done on the 470-foot cruise ship dock which is being expanded in order to accommodate the newer and longer cruise ships. The 2021 cruise ship season was dealt a major blow Thursday when Canadian officials extended a ban on cruise ships through February 2022. Alaska’s Congressional Delegation issued a joint statement in response to Canada’s unexpected announcement. (Sentinel Photo by James Poulson)
Fellow member Andrew Hames stressed the importance of having the Assembly and board continue to work together, since all are dealing with the same budget challenges.
“No matter what we grapple with, we’re going to grapple with it together,” Hames said.
The board said Secure Rural Schools, a federal program, hasn’t been reauthorized yet, but customarily the city and school district split the revenue. The board also noted the additional funds the city provides in the Performing Arts Center utilities ($57,000), and maintenance ($150,000).
Other challenges include the annual cost of STEP (longevity and education) salary increases for teachers, higher costs due to COVID, and an estimated 12 percent increase in health insurance costs. District representatives said the board heard loud and clear that the community wants to continue to preserve low pupil-teacher ratios.
Assembly member Thor Christianson made the motion to fund to the cap - $7,764,150, an increase of nearly $400,000 over last year’s support level. He was optimistic about Sitka’s ability to weather the challenge of the potential loss of another season and opined that Sitka will see independent, small cruise ship and charter boat travelers, as well as federal stimulus funds coming here.
“Hopefully, we will get our share,” he said.
Mayor Steven Eisenbeisz said that with the shock of hearing another cruise ship season may be lost, he needed more time to look at city finances. He said if he had to decide now, he would vote for flat funding.
Kevin Mosher said he has voted in favor of funding to the cap in the past, and supports the school district. At the same time, he said, the city has needs as well, including maintaining its infrastructure.
He said he favored funding the district at last year’s levels and giving the schools half of SRS if it comes in.
“I think that’s fair, I think that’s very fair,” he said.
Duncan and Rebecca Himschoot agreed with the importance of investing in education, but weren’t ready to vote. “I’m struggling with what to do,” Himschoot said.
Valorie Nelson said it’s too early to vote on the budget, or the amount to give schools, given the number of unknowns for the coming year. She also commented that some Assembly members did not disclose their potential conflicts. Christianson’s wife has a grant-funded position in the school district and Himschoot is a teacher. Himschoot said she had conferred with the city attorney on the conflict question, and confirmed that she can participate and vote on school funding issues on the Assembly.
From the public, former Assembly member Richard Wein stated that funding on the city side has been flat – “beyond flat” – and estimated $200 million in deferred maintenance projects.
All five members of the School Board and all seven members of the Assembly attended, with Nelson participating through Zoom.
