Tanana school system seeks $200K state bailout

FAIRBANKS - The new superintendent says the Tanana City School District needs $200,000 from the state to meet its obligations for the rest of the year.

If the district, which consists of Maudrey J. Sommer School in the Interior village of Tanana, doesn't get the supplement to its $1.3 million budget, John Bania says he faces the choice of either paying bills or teachers.

"Toward the end of the school year, it's going to be a matter of paying people or keeping the lights on," he told the Fairbanks Daily News-Miner.

Bania blames the shortfall on mismanagement by his predecessor.

He said when he started the short-term assignment in August, more than $100,000 in unpaid invoices were found. He says that was compounded by years of bad financial decisions, including purchasing fuel oil at peak prices, selecting a top-shelf health insurance plan and "generous raises" given during contract negotiations all while student enrollment was dipping by about 30 percent.

The district has 16 employees, including 5.5 teaching positions for 43 students in the school, down from 57 last year. During the 1990s, enrollment hovered around 100 students.

Even after cost-saving measures have been implemented, he says the district remains about $200,000 short.

Bania said an accounting review of the district budget Friday concluded with an "inevitable" decision: either stop paying its electric, telephone, Internet, water and sewer bills immediately, or be unable to pay its teachers. Next year's budget is projected to dip to about $1 million, he said, which doesn't leave any room to clean up the deficit in 2009-10.

Gov. Sarah Palin's rural adviser, John Moller, is expected to visit Tanana on Friday.