This Week in Fairbanks: Friday, April 7
This new series will summarize happenings around the Fairbanks North Star Borough (FNSB) each Friday. Something you’d like included, or that I’ve otherwise missed? Please let me know via a comment or email reply.
Mayor Ward Unveils His Proposed Budget
Fairbanks North Star Borough Mayor Bryce Ward presented his proposed budget for the Fiscal Year 2023-2024 during the annual State of the Borough address on Tuesday.
You can watch the recorded livestream below, read the 900 page document here, or keep scrolling for highlights.
Someone much smarter than me once said that budgets = priorities. Here are some of those highlights:
The proposed budget is for $188.48 million, with $150.68 million for general government expenses. This is an increase of just under $1.5 million, which is well under increases in inflation (for better and worse).
The proposed budget is about $16.5 million under the borough’s codified tax revenue cap. It doesn’t include any additional services or new personnel. The amount of debt the borough is under has continued to fall.
The proposed property tax mill rate is 11.69 mills, which is just over a half mill less than the current year. This should somewhat offset the tax burden of increased property values.
Education takes up just over a third of the general proposed budget and includes $55.5 million for the Fairbanks North Star Borough School District’s local contribution.
While the local contribution increased by about $3.4 million (to make up a decrease in funding from the state due to increased property values in our borough), it still falls over $3 million short from what the FNSBSD has asked for (and $5.4 million short of what it arguably should have asked for. More on this below).
Funding for the FNSBSD is a complicated formula that includes state, local, and a small amount of federal funding. Currently, the FNSB is funding the school district above the minimum required contribution but below the maximum allowable contribution: one of very few boroughs in our state to NOT provide funding for education at the cap.
The recommended budget contributes $12.5 million to the Capital Improvement Program (CIP), just over the required amount. Lots of borough projects like the new skate park and incoming library renovations are funded through the CIP.
Expect borough fees to fluctuate over the next few years: while generally trending upwards, the borough is attempting to make them more equitable.
What do I think of this proposed budget?
Well, it’s 900 pages long and I haven’t had a chance to go through all the details yet, but here are some preliminary thoughts:
I think it fits the pattern the Mayors office has taken over the past several years: a self-identified focus on stability of borough services, streamlining government processes, continued promotion of development and construction, and cutting operating costs to keep property taxes lower.
It’s generally a thoughtful proposal, though I would say that many borough services are running with near skeleton crews, and the borough has had troubles hiring lately. I would guess that close to flat funding and hiring issues are connected.
I wish the FNSB had an effective mechanism other than property taxes to raise funds. That’s by far the biggest revenue generator the borough has.
I’ve heard that the borough finally has a grant writer on contract: great news!
I see that there would be room to increase funding to local schools to the level they have asked for without encroaching on the boroughs tax cap.
The FNSBSDs ask to the Borough Assembly is already a compromise consisting of larger class sizes. A few weeks ago, the FNSBSD gave a tiny 24 hour window for public input on two budgetary plans that the board was considering for the next school year:
Scenario B provided enough resources for both elementary and secondary class sizes to NOT increase next year, as well as adding back funding to rehire SPED Extended Learning Program teachers. To do this it included an ask to the Borough Assembly to provide an additional $5.44 million in funding.
Scenario A was similar to Scenario B, except it included an increase in class sizes, with the pupil-to-teacher ratio in middle and high schools growing from 27 to 30 (middle) and 30 to 32 (high). This scenario did also ultimately include funding for SPED Extended Learning Program teachers. The cost of this plan had a smaller ask of $3 million from the Borough Assembly, and this option was ultimately chosen by the school board. The proposed borough budget does not provide the $3 million: the above noted increase is simply parity from a loss of funding from the state.
Without a significant increase in the BSA or other kind of funding from the state, class sizes and potentially other district resources will suffer. The current proposed local contribution does not fully meet the needs of our school district. While I’m sure many would argue that it shouldn’t, and the state should pick up more of the slack… the result is still increased stress on educators and a worse learning environment for students.
Neither (some in) our borough nor (some in) the state legislature want to increase funding for public education. While I agree that the state should increase the BSA and/or otherwise do a better job supporting Alaskan schools, I occasionally hear some notions that the borough is not capable of increasing the local contribution. This is not true.
Maximum Local Contribution
The City or Borough can contribute more than is required but may not exceed the maximum local contribution. To calculate this, use the required local contribution plus 23% of basic need and those state funds calculated on adjusted ADM or a 2-mill equivalent of the full and true value of the taxable and real property within the district; whichever is greater. The additional amount is added to the required local effort to reach the maximum local.
The FNSB funds the FNSBSD below the maximum allowable local contribution…over $14 million below, in fact.
If (and it’s recently become a bigger if) the state meaningfully increases the BSA, our schools should be okay in the short term. Otherwise, they would likely struggle.
As I stated when I ran for Borough Assembly, I still believe that we should fund education appropriately, even if that means higher taxes and footing more of the cost locally.
What’s Next for the Budget?
Well, the FNSB actually has this handy document that explains this years timeline… long story short, the mayors budget is a well-polished draft. Much can change based on the will of the Assembly (and, hopefully, borough residents).
Citizens can comment on the proposed budget and priorities at the upcoming Assembly Meetings and Budget Public Hearings noted above. Residents are also always welcome to any public meetings of the Assembly and various committees: I hope you have a chance to participate and have your voice heard!
I expect a fairly unpleasant budgetary process from the Assembly, unfortunately.
Golden Heart Giving: Trivia Night for Bread Line
Fortunately for the Bread Line but unfortunately for us, this Saturdays Trivia night is all sold out. Lauren Hatty is hosting the evening at Sophie Station.
You can still come out to be a spectator for a $10 donation, food and entertainment provided.
100% of the funds raised during trivia night will be donated to Bread Line/Stone Soup. If you cannot attend but still want to donate, additional options for donating are listed here.
Senator Kawasaki is hosting a Town Hall on Saturday
Planned Parenthood Alaska invites you to thank Senator Kawasaki for sponsoring SB 108, the Senate companion to HB 99: LGBTQ+ Equality, and encourage him to make it a priority to pass. The Town Hall is on Saturday, April 8 at 1:00pm, at (the newly renamed) Global Credit Union building.
Speaking of…
AlaskaUSA has Rebranded
As a red-blooded Alaskan, I hate the name change. My first bank account and mortgage were with AlaskaUSA. Global Credit Union sounds so soulless. But, as it says on their website, on we go… to the same realm as Alaskaland.
Tragedy at Yak Estates
An apartment building at Yak estates burned down last week, displacing five families, injuring one person, and leaving several pets dead.
I have stumbled upon several gofundme campaigns for the displaced families on Facebook, as well as many kind offers of housing and other help.
Here’s one from a friend of a friend.
Unfortunately, these tragedies can sometimes be seized upon by terrible people participating in fraud and deceit: always be careful and double check who you’re really supporting.
I’m glad every person got out okay.
First Friday in Fairbanks
First Friday is here! Every first Friday of the month, our borough celebrates artists and local businesses all around town.
Some perennial favorites are the Bear Gallery, where this years annual spring juried exhibition is based on food, and the Grange Gallery in North Pole, where artist Lacey Miller will be featured.
I’m most excited for the Black Alaskan Art Matters show at the newly (ish) renovated Venue, starting at 6pm. Venue has been absolutely killing it lately: from shows with Medium Build to occasional trivia, I highly recommend checking them out.
A new friend of mine, stagename J Brig, will be performing, along with a gaggle of other talented Alaskans.
Hope to see you there. Happy Good Friday, Easter Sunday, and Passover to those that celebrate, and I hope you have a great weekend!
PSA: I always appreciate you sharing posts if you find them valuable. However, Twitter just severely limited tweets that include links to Substacks (the platform I’m on). If you’re up for it, please do share this post/site, but keep that in mind! Thank you!
Thanks for all this information Kuba