Academies of Anchorage appeal denied; district faces $75 million shortfall and staffing choices

The Academies of Anchorage (AOA) grant appeal was denied, and district leaders warned Thursday that the decision will force Anchorage School District officials to weigh which career-and-technical positions to protect as they develop a budget to close a projected $75,000,000 structural deficit.

Why it matters: AOA has been funded in part by a federal grant; the appeal denial means some positions funded by that grant are no longer guaranteed. District staff said the loss is concentrated but meaningful and will shape choices about class sizes and which specialty programs to preserve.

At the start of the Academies of Anchorage update, Sean Prince, speaking for the program, told the committee, "we did receive information today that our FDS grant appeal was denied." District staff said they have informed principals, academy coaches and community partners, and are sending thank-you letters to the legislators and industry leaders who supported the appeal.

Dr. Bryant, speaking for district administration, described the personnel impact and the larger fiscal picture. District staff told the committee that roughly six current technical-education teachers were funded directly by the grant that was defunded; the district also employs about 56 other staff who teach technical-education courses. "Just because this grant is being defunded does not mean our commitment to things like CTE is going away," Dr. Bryant said, but added that the district must make difficult budgeting decisions as it faces what staff described as the equivalent of more than 500 positions’ worth of salary and benefits in a $75,000,000 shortfall.

Board members and staff discussed immediate and near-term options. Dr. Bryant said he would like to "use those pullbacks for those teachers for the remainder of the year so that no individual high school schedule is changed," a short-term step to avoid immediate schedule disruption while longer-term decisions are developed.

Board members pressed for clarity about how other staffing shortages and attrition could affect options. A staff presenter said the district budgets with an attrition account (anticipating some unfilled positions) and that last year’s fund balance was substantially larger than the reserve expected this year; staff estimated available fund balance could shrink from roughly $40 million last year to a single-digit number of millions this year, complicating any reallocation decisions.

Legislative possibilities drew questions from the committee. Staff said they are working with lobbyists to explore language in HB 57 and in a Senate measure referred to in the meeting as SB 113 (also discussed as SB 13 in the transcript). "The language about CTE funding in HB 57 is tied to the governor signing off on SB 13, which is currently in front of him," staff said, and noted the governor’s decision timeline. The committee was told that, while a veto seemed likely, recent developments could change that calculation.

Committee members and staff also discussed community participation in any budget trade-off process. One board member urged bringing students and families into discussions about how to prioritize programs; Dr. Bryant and other staff described the large number of external supporters who had written letters on behalf of AOA, from the congressional delegation to business and nonprofit partners.

What’s next: There was no formal vote or directive at the committee meeting. Staff said they will continue to communicate directly with school principals and academy staff, will explore legislative and budget options with lobbyists and the administration, and will present budget choices to the board as they are developed.

Context: Committee members described the AOA program as one of several district secondary programs that have delivered measurable results for students and employers. Staff emphasized that program decisions will be weighed against broader needs — including protecting core classroom teachers and class-size targets at the secondary level — and that additional reductions could affect elective offerings and specialized programs.

Ending: District staff urged patience while administrators and the board develop a path forward and vowed to keep principals, academy coaches and community partners informed as budget options are evaluated.