Anchorage School District board warns of budget shortfall, moves into executive session

During a meeting of the Anchorage School District board, members warned that current funding projections and the use of discretionary reserves could force cuts to staff and programs next year and the board voted to enter an executive session for legal updates, negotiations and contracts.

Board members focused on uncertainty in state funding and the district’s use of constitutional budget reserves, saying the timing of legislative action and gubernatorial decisions will determine whether programs and staffing levels can be maintained. "The good news is that we've got something coming, and the bad news is next year, because the budget we've got right now is using up the reserves that really are more discretionary," Member Higgins said. "I hope we get into discussions not waiting till February...we need to have a good understanding of how deep that hole is."

Dr. Bridal cautioned that even if the state fully funds at a new Basic Student Allocation rate, the effect would be largely to maintain the current year’s operations rather than provide a large new increase. "If it's fully funded at the new BSA rate and the governor lets that stand, in essence, that allows us to have status quo next year in the way we're operating the district this year," Dr. Bridal said.

Member Bellamy stressed the district’s remaining exposure under the board’s internal projections, saying, "we would be approving a $700 BSA, but the inflationary impact still persist. And I will remind the board that with our 560 projection, we still have budgeted on track to have a plus 1 PTR increase." Members listed possible impacts that could be at risk if additional funds do not arrive, including staffing levels, counselors, librarians, middle school sports, summer programs and other services. "All these negative things about impacting staffing and programs and swimming and summer and and middle school sports, you name it, counselors, librarians, everything, and number of teachers is all gonna be on the line again, maybe more," Member Higgins said.

A board speaker also referenced state-level debate on funding, saying they had "seen an ADM from Senator Wolkowski noting that there was a huge, months long fight in the most recent session, but really going back since 2017 to increase the formula by a meaningful amount." Board members said additional funding and policy decisions remain contingent on the legislature and the governor between now and June.

After the budget discussion, the board chair asked for other questions and then asked for a motion to adjourn into executive session "for the purposes of legal updates, negotiations, and contracts." Member Bellamy moved to adjourn into executive session; the motion was seconded by Member Holloman. "Seeing no objection, we will enter executive session," the presiding officer said, and the board entered executive session by unanimous consent.

The board did not take further public action on specific budget cuts or program changes during the portion of the meeting covered in the public record; members urged earlier advocacy to the legislature and continued monitoring of the state funding outlook.