District outlines consolidation plan that would close five schools, projects roughly $7 million in savings

Fairbanks — At a Jan. 13 work session following an hour of public testimony, the Fairbanks North Star Borough School District administration presented details of a draft consolidation plan that recommends closing five elementary schools and estimates roughly $7 million in initial savings and about $4.8 million in ongoing annual savings.

Superintendent Dr. Luke Minor told the board that the recommendations were produced using a community‑created framework and that the district will release a proposed budget on Feb. 17; administrators said the board must forward a recommended budget to the borough by April 1. "Once the board makes a decision, the school district is required to offer school district facilities to charter schools, and they have the right of first refusal. That's required by the state," Minor said during the presentation.

Administration outlined the financial mechanics and operational impacts. Staff said state foundation funding uses a multi‑year hold‑harmless process when a school is removed from the formula: in the first two years the district retains 100% of the lost revenue, then the allocation steps down (year three ~33% decline, year four ~66.6%, year five a full revenue loss). The district estimated the consolidation of the five recommended schools would yield about $7,000,000 initially and approximately $4,800,000 in perpetual annual savings once hold‑harmless reductions phase in.

Charter leasing and facilities: the administration reported…