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ISER: Alaska’s per-pupil spending has fallen vs. national average; teacher pay below national levels when adjusted
Summary
ISER researchers told the task force Alaska’s total per-pupil spending in 2023 was a little over $22,000 (above the national average in raw dollars) but that after several cost adjustments Alaska’s effective spending and teacher pay have declined relative to the national average; ISER recommended updated cost assessments and attention to salary, housing, and benefits.
The University of Alaska Anchorage’s Institute of Social and Economic Research updated the task force on per-pupil spending and teacher compensation dynamics in Alaska on Jan. 16.
ISER’s Matthew (Matt) Berman presented comparable figures for 2023 and long-term trends. He said total per-pupil spending in 2023 was "a little over $22,000 compared to $19,000 for this US as a whole," putting Alaska twelfth in raw spending per student. But Berman stressed that different measurement choices change the interpretation: when applying Alaska’s geographic cost differential and cost-of-living adjustments, the effective per-pupil figure can fall substantially (he cited working examples including $16,890 and an alternative adjustment to $13,650).
Berman reported that Alaska’s margin above the national average has steadily eroded since 2017 — in part because national spending in many states has grown faster than inflation while Alaska’s increases lagged. He also noted that while overall spending has grown in raw dollars, the composition has shifted: Alaska is spending relatively less on salaries and more on operations and maintenance than the national average, and teacher salaries, when adjusted for the relevant indexes, are "about 25% below the national average" by the last available comparisons.
Berman flagged data-lag issues: the most complete comparative data they can use are through 2023, and some national wage and salary statistics were delayed or unavailable; recent legislative increases in state contribution may not yet appear in national-comparison datasets.
Why it matters: ISER’s analysis shows Alaska’s spending position depends on measurement choices (total vs. current spending, geographic adjustments, cost-of-living adjustments). The numbers influenced later discussion about updating district cost factors, how to count students for funding, and whether to pursue an adequacy-based approach to setting the foundation/student allotment.
