• Oct–Dec: Data collection & analysis and draft development
• Dec 2: School Board work session on the Pro Forma budget
• Jan: District finalizes Preliminary budget
• Feb 3: School Board first reading
• Feb 17: School Board vote
• Mar 1: Proposed Budget submitted to Anchorage Assembly
• Mar 3: Assembly hearing
• Mar 17: Assembly vote
• Apr: Release of Adopted Budget
• Apr-July: Adopted Budget revisions based on Legislative and Board action

ASD expects to share the updated budget deficit in early December, once the fall budget analysis is complete. The School Board and community will have opportunities to weigh in on potential budget reduction solutions throughout December and early January, prior to the finalization and presentation of the Preliminary Budget. The administration will then prepare a balanced budget based on feedback and present it to the Board on Feb. 3. A draft Preliminary budget will be posted on this webpage for review, with additional opportunities for feedback before the School Board begins its review in February 2026.

ASD’s financial outlook remains difficult and uncertain after years of underfunding and increasing strain on local, state, and federal revenue sources. The economic reality is that the cost each year to provide the exact same level of programs & services increases exponentially. However, flat state funding and the lack of inflation proofing have steadily reduced the District’s purchasing power and the ability to do the exact same things as we did the year before, forcing difficult choices about how to sustain classroom programs, retain educators and maintain essential student services. 

ASD faces a projected deficit of more than $75 million next year. Without additional support, significant reductions will once again be necessary to balance the budget. More than 80% of ASD’s operating funds go directly to classroom instruction and support, and every effort is being made to protect students and learning opportunities.

Over 87% of the District’s operating fund budget is salaries & benefits. It is not possible to make significant reductions to the budget without impacting staff positions. The exact impact on staff won’t be determined until the Board finalizes a budget on Feb. 17.

Community feedback is an important piece of the budget development process.

Staff, parents, students and community members are encouraged to participate in a feedback opportunity called The Balancing Act, a tool designed to suggest budget solutions like prioritizing certain programs & services and suggesting spending cuts. This tool will become available for use in December.

ASD leaders are actively engaging with state legislators in regard to education funding. Learn more about the Legislative Priorities the district is pursuing this year.

ASD is also collaborating with school districts across Alaska to advocate for public schools, since we believe that a rising tide lifts all boats.

Specialized programs and supplemental services that have been sustained or restored in previous budget cycles may now face reductions.

Keeping class sizes small remains a top priority. ASD is working to protect classrooms, but staffing reductions will likely increase class sizes in most schools. Most of our budget supports staffing, so any significant cuts will inevitably affect staffing levels.

There are a variety of functions and positions the District is legally obligated to provide, such as payroll, accounting, risk management, budget, purchasing, benefits, HR/labor relations, operations & maintenance, IT, assessment, curriculum, compliance, governance and more. State, federal and local regulations drive certain administrative functions and fixed costs. Additionally, some administrative positions are focused on mission-critical tasks related to student achievement, required services and employee supports. 

Learn more about the District’s budget and the requirements for school district budgeting in Alaska. Participate in the public process at the local and state level.
Contact your local state representative to help them understand the impacts of our budget deficit is encouraged.

The District is expecting to be reimbursed for costs incurred supporting the evacuation efforts in Western Alaska. The funding is in direct response to district expenses and will not help close the estimated $75 million deficit for next year.