Unalaska, AK – School districts and local governments across Alaska are being asked to shoulder much more of the burden for public employee retirement funds in 2008 than they have in the past, following a decision this week by the Alaska Retirement Management Board.

The board approved an increase in the employer contribution rate for its retirement systems for public employees and teachers, in order to pay down the systems' $6.9-billion deficit. School districts and local governments were notified of the decision today.

Unalaska City School District Superintendent Darrell Sanborn said the increase would cost the district $448,000 for the fiscal year, about 65 percent more than it paid for retirement plans last year. That amounts to about 8 percent of the district's annual budget.

Sanborn said making room for the new expense would mean cuts to the district's other services, but that it probably won't come to that. Because the rate increase affects districts statewide, including in Alaska's urban centers, Sanborn's confident that the Legislature will find money to cover the increase.

Governor Frank Murkowski thinks so, too. He said in a letter to districts statewide today that he will recommend to the Governor-elect that the state cover the districts' contributions as it has in the past two years. Of course, since Murkowski lost the Republican gubernatorial primary last month, it won't be up to him.

Under Murkowski's proposal, the state would cover $207 million of the school district's costs and $77 million of local governments' costs.