Facing a deficit of $111 million, the Anchorage School District released its draft budget on Jan. 31 calling for massive cuts to programs and positions.
The cuts represent about 20% of the district’s spending plan for the 2025-2026 school year.
In a letter to Anchorage parents, Superintendent Jharrett Bryantt said the deficit is “driven by more than a decade of flat state funding and rising costs due to inflation.”
The budget proposal came on the heels of Gov. Mike Dunleavy rejecting a plan by Alaska lawmakers to significantly increase state funding for local school districts without tying the funding boosts to policy changes.
A bill backed by the House majority would increase education funding by more than 35%, staggered over three years, and tie future changes to inflation.
Dunleavy on Jan. 31 instead proposed keeping education funding levels close to those approved by lawmakers last year, with more funding targeted at homeschooling programs, career and technical education, and reading programs in elementary schools.
Bryantt said in his letter to Anchorage families that the lack of state funding increases, coupled with inflation, means the district “simply cannot sustain the same level of programs and services.”
The proposed budget would increase the student-to-teacher ratio by four. Kindergarten classes would rise from 22 to 26 kids per teacher. Middle and high school classes would have more than 35 kids per teacher.
In doing so, the district would eliminate roughly 200 teacher positions.
In addition, more than 60 teacher positions would be cut due to declining student enrollment.
Anchorage School Board President Andy Holleman said teachers in the district were not expected to lose their jobs as a result of the cuts. Rather, retiring and resigning teachers would not be replaced, and existing teachers may be asked to shift from one school to another to meet students’ needs.
The district is also proposing cutting 12 librarian positions and 13 school nurses; eliminating the entire IGNITE program serving gifted students; eliminating all middle school sports; and eliminating all high school hockey, swimming and diving, and gymnastics programs.
The school district budget proposal assumes no increase to the state funding formula.
“If the Legislature and governor approve additional funding, it will likely come after ASD (the school district) is required to submit a balanced budget to the Municipality of Anchorage,” Bryantt said in his letter.
The final budget must be submitted to the Anchorage Assembly by March 1.
The Wrangell School District is in a similar budget situation. Absent any increase in state funding, the district’s draft budget for 2025-2026 shows an anticipated deficit of $767,000 — representing more than 12% of its spending plan. Covering the gap would drain all but $50,000 from the district’s reserves fund.
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