State and Federal Aid
Grand Canyon University
Public School Finance
EDA - 535
March 17, 2014
State and Federal Aid
If your child were in harms way at school would you send them to school? With the most recent cuts in the Northwest Arctic Borough School District (NWABSD) this is exactly what is happening here in the NWABSD. With the elimination of full day kindergarten and the class sizes in the elementary reaching an astonishing 30 plus students per class, the students within NWABSD are most definitely being put in harms way each day they attend school. At the Middle and high school level we are losing the alternative learning program that has helped eliminate ...view middle of the document...
Due to the fact of the ANCSA act and the payment the borough receives from Red Dog, getting more funding through property tax, income tax, and sales tax for NWABSD is not going to happen anytime in the near future. The proposal being submitted to the local legislation is we use sumptuary tax, the “Sin Tax” to help fund our school district. Sin tax, “is used for taxes on activities that are considered socially undesirable”. ("Sin Tax," 2014, p. 1) Recently in the Region two liquor stores have been opened up and running full time. One package store is found in Kotzebue and the other is found n the village of Kiana. Each village within the region voted on allowing alcohol in their village or not. Kotzebue and Kiana both passed the bill in 2010 and opened up stores in 2011 for business. Locals in each vilage are controlled on how much alcohol they can purchase a day, so both villages are considered damp. All other villages in the region are considered dry for now. Upon opening in 2011 the Kotzebue Liquor Store were averaging sales of around $8,000 – $12,000 a day. This is roughly between $2-3 million dollars in extra revenue for Kotzebue. With about a three hundred percent mark up, by the time the alcohol is shipped from Anchorage to Alaska, the city of Kotzebue profits should easily be around $750,000. Sales tax in Kotzeube is currently 6%. The sales tax on alcohol is also 6%. I am proposing we raise the sale tax on alcohol to 8% with the other 2% going toward funding education. In the city of Kotzebue this would generate an extra $40,000 – $60,000 alone. With Kiana’s liquor store adding another $20,000 -$30,000. This money would be used to help alleviate the financial crisis happening in the NWABSD. Especially in the elementary schools where class sizes are reaching insurmountable sizes and more staff and support will be needed.
At the middle and high school level NWABSD will develop a school within a school to replace the alternative learning program being cut due to finances. The school within a school is where teachers in the middle and high school teach across the boards. Middle school teachers will teach high school students who are at risk when their students go to their elective classes. Mainly the core (math, english, social studies, and science) teachers will be part of this program. Elective teachers will also play a role in this program. This program will help students who have not passed, or are struggling in everyday classes to get caught up and pass the high school exit exam. Classes will be smaller and will be directed toward the students in these classes to accommodate their needs. This program will not cost the district any extra money and will help keep students on track to graduate and be productive citizens.
Over the next 5-10yrs it is projected that liquor stores will be operating in more than half of the villages in the region. With...