MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Pete Sprague, Assembly President

DATE: December 4, 2003

SUBJECT: Resolution 2003-____, asking the voters to authorize the Kenai Peninsula Borough to directly fund cocurricular activities for the school district

The Kenai Peninsula Borough School District is seeking alternative forms of funding in order to maintain a quality level of education. On November 17, 2003, the school board voted to ask the borough to fund cocurricular activities in the amount of $1.4 million for fiscal year 2004, and $1.4 million for fiscal year 2005. The board also asked the borough to seek voter approval during the 2004 general election for the imposition of a mill rate to provide continued funding for cocurricular activities through a special appropriation by the borough. The request seeks funding based on a 0.5 mill levy.

Precedent for this type of educational funding is found in the existing KPB Chapter 5.24 in which the voters approved post-secondary education funding in the amount of 0.1 mills per year. While the legal department has indicated that providing such direct funding outside of the outside of the operational "cap" on funding may be legally defensible, it also indicated that this is a gray area. Specific adoption by the borough of separate authority to fund cocurricular activities outside the cap would strengthen the borough's legal ability to directly fund cocurricular activities as a separate power.

This resolution would provide the voters with an opportunity to vote on this proposal prior to the end of the current fiscal year and during the budgetary process for the next fiscal year. This vote would also give the assembly clear direction on whether or not to provide funding this year for cocurricular activities. The borough clerk estimates that a special by-mail election for this ballot proposition would cost approximately $75,000. However, this is approximately 5.36 percent of the amount currently proposed for annual funding by the school district by this mechanism. Your support of this resolution is appreciated.