By RODNEY DIAL
Feb. 26, 2026 – Five days ago, I warned (again) about the problems facing the Ketchikan Gateway Borough School District due to mismanagement. I just learned it’s far worse, and honestly, I didnât expect it to happen this fast.
Last night, the Assembly was advised by the borough manager that the School District has insufficient funds to make payroll on Feb. 27.
To my knowledge, never in the history of Ketchikan has this happened like this. The level of incompetence and mismanagement at the district is staggering. From the time the district was âcaughtâ last November with the discovery of  years of financial mismanagement, with $5.4 million in debt that was not properly disclosed, they have now made a bad situation worse by failing to budget for employee payroll and created yet another emergency.
For fairness, district debt was not presented in a clear or conspicuous way, and the school board was likely unaware. However, the districtâs business office should have flagged this as a significant issue, and their failure to do so is one of the many factors leading to this crisis.
I suspect itâs also partly due to them counting $5.4 million of debt — funds already spent — as actual revenue available for spending (yes, seriously). My prediction is they will try to frame the borough as the “bad guy” for trying to ensure their health care expenses are paid as required by the MOA they signed.
Last year, upon discovering the debt, the school board should have immediately demanded accountability and required a cash projection for the remainder of the fiscal year; they have literally done the opposite and approved new hires. One school board member had the courage to ask where the funds would come from, but the majority approved the expenditure after the district told them they would “make the money work” (actual quote).
Well, there is no money to make it work because they are short $1,421,000 for payroll due tomorrow. The borough manager, in response, informed the Assembly he is transferring funds to the district to bail them out (yet again). The funds to be used, we were told, were being held/necessary to pay for district health care expenses. So, I guess that means they will be adding health care debt again. I do not support the managerâs fund transfer, as I have no way of verifying their claims. I have asked this to go to the Assembly first, but it appears this will happen anyway.
The School Board has failed this community. They have known at least since last year this was coming, Â and they made it worse by not getting expenses under control and hiring new employees. All of this could have been prevented. Students and teachers are about to pay the price.
Friends, itâs way past time to get involved if you want to salvage local education. Demand that the school board do their job and bring accountability and a truly balanced budget, because the longer it takes, the worse it gets.
The School Board has been delaying and asking for more time. They clearly need to implement a RIF and consolidate schools, to prevent even worse outcomes.
Additionally, the School Board needs to be aware of and communicate to the public, the additional employees and student activities that will need to be reduced to fund teacher contracts under consideration. Teachers, you are worth it and valued, but district administration has failed you. I’m sorry.
By late May/early June, the district will begin spending current borough reserves, which will compromise the fiscal health of the borough. The time for action is now. Â To be clear, this is just my personal opinion, and I am not speaking for anyone else.
Rodney Dial is former mayor of the Ketchikan Gateway Borough and now serves on the Assembly.
10 thoughts on “Rodney Dial: Ketchikan schools can’t make payroll this week?”
These are the people teaching our children but they cannot add and subtract? Maybe someone should buy them a calculator going forward. I hear they are cheap at Walmart.
It’s way past time to recall the entire school board. It’s also time for the state to take over the Ketchikan School District. Fire all the heads of the departments in the administration-HR, CFO, OMB, Superintendent, Labor Relations, Curriculum, etc.
State–please do NOT financially bail out this failing district or you will be incentivizing bad behavior.
The dumpster fire headline pic is perfect. Let it burn completely. No pay will result in teachers leaving, and they whole tamale burns. Then, sweep up the ashes and slowly rebuild.
Well thatâs the way cookie crumbles when you hire managers and supervisors hires their friends or applicants they can get along with instead of the Correct people
Itâs not just a Ketchikan problem. Itâs an Alaskan HR problem. You hire or elect tge wrong people for management then cry over the problems from your decision.
Son, a famous person said: “If you’re really successful at bullshitting, it means you’re not hanging around enough people smarter than you.”
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Don’t you think the folks who burned through the money knew they could take you for that much and more because Getting Money is and always was Job #1 for the Assembly? You have Co-Governor & Finance Minister Giessel’s number on speed dial, why didn’t you give her a call, work out a payday loan or something …unless she got your cojones in her private lockbox too?
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But no, you got to keep digging your hole, right Rodney? Your education industry can’t meet payroll but your crew’s gonna hire a City Manager/Public Utilities General Manager for what, $245,000? Any point in asking who’s managing the city and public utilities right now, or if they’re making $245,000?
(thealaskastory.com/hiring-now-city-manager-in-ketchikan-makes-far-more-than-the-governor-of-alaska/)
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Maybe you’re not as crooked as your Anchorage counterparts, but how does it not look like you and your crew breached your fiduciary duty, and having done so, why are you lot still in office?
That’s city not borough different dumpster fire
It is going to get worse. Look up and listen to Mitch Vexler from Texas. The incompetent school administrations and boards across the US are in trouble, from what I can tell. https://www.youtube.com/watch?v=s-tY7Qv9yjg He lays out the unconstitutional, fraudulent behavior of school districts across the nation. Here is just a bit of his Amicus brief that he presented to President Trump and Elon Musk School Districts.
Bond devaluation at the hands of the School Districts, their superintendents, and boards:
A.) No sources and uses, no notes to balance sheet, no bond schedule = Fraud.
B.) Levered = Economic Destruction Output = Equity Stripping of Mom and Pop.
Unlike the amortization schedule on your house, the School Districts raise bond money that is
not paid off but rolled up and out such that the net result is the inverse of an amortization
schedule which is the definition of a Ponzi scheme. = Fraud
C.) School superintendents have signed fraudulent certifications. = Bond Fraud. (see below)
D.) The bonds are paper chasing paper (mortgage-backed securities) and which the Median Household
Income cannot pay off and for which the âimplicit guaranteeâ of the property owners does not exist.
Pensions and 401Ks associated with these bonds are at high-risk aka âjunk bondsâ. = fraud.
Here is the full link https://irp.cdn-website.com/39439f83/files/uploaded/School_Districts_and_Accounting_Fraud_-_Presentation_to_President_Trump_and_Elon_Musk.pdf
I believe an Amicus brief where he spells out the fraud is on the DOJ’s desk and with the Supreme Court in Texas. Not sure how this will all shake out but Alaskans beware it has been happening in our state as well.
All districts should be audited by an independent 3rd party chosen by the unelected officials.
Here’s a possible solution and a win/win. Transfer the ASD Superintendent Jarrett Bryantt to run the Ketchikan Schools. Maybe also replace the entire Ketchikan School Board with the ASD School Board. Truly a win/win.
How much more do we need to learn about the failings of the current model of educating our children? The unions and leftist ideology have ruined schools. We need a new model. Homeschoolers and charter schools lead the way.
Margret Thatcher said something like this: Sooner or later you run out of other people’s money. Who thinks that anyone on the Ketchikan School Board runs their personal finances like they run the School District’s finances? Well dang, maybe they do run their personal finances the same way.