ASD adheres to all State of Alaska accounting standards and the nationally recognized guidelines of the Governmental Accounting Standards Board (GASB). These standards ensure financial reporting is:

• Clear, accurate, and useful for public stakeholders

• Consistent across government entities to promote transparency and accountability

ASD has consistently been awarded the Certificate of Excellence in Financial Reporting Award from the International Association of School Business Officials annually for at least the past two decades. Any implication that ASD is hiding funds or inflating its deficit is categorically false and contradicts the way public education budgets are developed, audited, and reported.

We’ve heard repeated claims — including from members of the Legislature — that ASD holds $88 million in uncommitted fund balance that could be used to avoid budget cuts. This is misleading and omits critical facts.

Here’s the actual breakdown of the $88 million: 

•  $27 million is legally restricted to protect the Municipality of Anchorage’s bond rating and cannot be used for school operations

• $49 million is already programmed into ASD’s FY26 budget to offset next year’s projected shortfall

• The remaining $6–8 million is designated for emergency use — representing less than 2% of our annual operating budget. This reserve provides basic financial stability and allows us to respond to unforeseen events such as natural disasters, equipment failures, or other emergencies.

ASD also maintains the largest public infrastructure portfolio in the state — 84 schools and 6 support facilities totaling 7.8 million square feet and valued at over $2 billion. Since 2009, we’ve managed these assets through an integrated facilities plan to ensure safe, sustainable operations.

Bottom line: The fund balance is not “extra” money. Nearly all of it is restricted, pre-allocated, or set aside to protect student learning and operational continuity.

Some legislators have pointed to $41 million in “unspent” staffing funds as potential savings. This reflects a misunderstanding of attrition budgeting, a standard practice among large school systems.

Each year, due to retirements, relocations, or other changes, some positions are vacated and remain temporarily unfilled. Districts account for these expected savings by reducing the budget on the front end — this is a planned, responsible approach.

In ASD’s FY26 budget, we project:

• $15.5 million in salary savings

• $26 million in benefit savings

• Total: $41 million — and it is already factored into the budget.

This money is not surplus. It reflects expected, built-in savings based on historical trends. Suggesting it can be redirected ignores both the budgeting process and how large districts responsibly manage personnel costs.

Another misconception relates to the $49 million in one-time funding the Legislature allocated last year outside of the BSA formula. Some have claimed ASD failed to submit a spending plan. That is incorrect.

In reality:

• The $49 million in one-time funding is fully incorporated into our FY25 operating budget

• We have communicated all relevant details through our adopted budget to the Department of Education and Early Development

• The funding is currently being used to preserve staffing and student programs that would otherwise have faced cuts.

This money is not sitting idle — it is already supporting classrooms and student success in real time.