• Budget Solutions

Overview

  • We applaud the Legislature’s override of the Governor’s veto of HB 57 – a major bipartisan achievement that reflects a shared commitment to sound education policy and responsible leadership. But even as we celebrate that progress, uncertainty still remains. The Governor has signaled he may veto all or part of the additional appropriation for public education. If that happens – and the Legislature does not reconvene to respond – every school district in Alaska might be forced to wait until January, after half of the school year is complete, to find out next year’s level of education funding.

    That scenario would be devastating.

    Districts across the state, including the Anchorage School District (ASD), would be forced to reopen budgets, consider deep program cuts, and explore emergency cost-saving measures. With the statewide layoff deadline behind us and summer planning already underway, options are limited. The consequences would be immediate and far-reaching – disrupting classrooms, destabilizing schools, and eroding public trust in the state’s commitment to education.

    We cannot afford to wait until January. Schools cannot operate in uncertainty, and students cannot learn in a crisis. Districts are in dire need of assurance from the Legislature and Governor so that the focus can remain on student learning.



    Superintendent Update 4/08/2025

     

    Clearing Up the Fund Balance Confusion

    There’s been some conversations and some confusion about how much money the Anchorage School District actually has on hand to address budget shortfalls.

    This year (FY25), ASD planned to use about $37 million from its fund balance to help close the budget gap and ASD expects to use the full amount.

    Looking ahead to next year (FY26), $49 million more is already committed to help balance that budget.

    Once those two amounts are set aside, there will only be about $6 to $8 million left in truly spendable funds. That’s about 1% of the total budget, and it’s what ASD can use for emergencies or unexpected costs.

    To make FY26 work, ASD is counting on:

    • Using most of the remaining spendable savings, about $49 million, and
    • About $65 million in budget reductions.

    You might’ve seen a story stating or heard someone say ASD has an $121 million unreserved fund balance. But here’s why that number doesn’t tell the whole story:

    • The $121 million is the ending unreserved balance from last year (FY24)
    • $37 million of that will be spent this year
    • $27 million is locked away in a Bond Debt Rating Reserve — it can’t be touched.
    • $49 million is already planned for next year’s budget.

    Take those out, and you’re left with about $6–8 million to address emergencies such as earthquakes, volcanoes, and fires.

     

    FY26 General Fund Budget Outlook 

    • Structural Deficit (General Fund + Transportation) - $111m
    • FY25 Operating Budget = $638M   Projected FY26 Operating Fund Budget = $651M
    • Projected Revenues = $543.6M
      • $94M less than FY25 without one-time supplemental funding
    • Estimated $27M in fund balance available at 8% minimum per board policy
      • $47M available at 5%
    • FY26 Budget Deficit (Projected Revenues vs. Expenditures) without use of Fund Balance = $107M
    • FY26 Budget Deficit (Projected Revenues vs. Expenditures) WITH use of Fund Balance = $60M

FAQs Clarifying ASD Budget Status

  • What financial standards does ASD follow?

  • What’s the truth about an $88 million fund balance?

  • What about the use of ASD’s $41 million staffing line?

  • Where Did the One-Time $49 Million Go?

Important info