Anchorage School District warns of roughly $90 million shortfall, outlines sweeping staff and program cuts

Superintendent Dr. Bryant and district finance staff told the Anchorage School District board on Feb. 3 that the district faces an estimated $90,000,000 structural deficit for the coming fiscal year and proposed a package of staffing and program reductions to close the gap.

"There is not a financial path to operate the status quo that we have today," Superintendent Dr. Bryant said as he opened the public FY27 briefing, calling the budget ‘‘structural’’ and warning the board that decisions this month will shape FY28 as well. Andy Ratliff, the district's chief financial officer, told the board ‘‘we are facing about a $90,000,000 deficit,’’ citing flat state funding, exhausted one‑time reserves and rising labor and operating costs.

The presentation outlined how the deficit emerged: several years of largely flat state base student allocation funding, declines in adjusted enrollment, and a recent increase in the municipality's required local contribution that, staff said, shifts costs to local taxpayers while reducing state shares. Staff said the district has drawn down reserves and used one‑time funds in prior years — including about $50 million from fund balance in FY26 — and now has limited unassigned balance remaining (staff projected about $8.1 million available at year end).

To close the FY27 gap, the administration proposed a mix of measures: reducing the district office footprint and academic services personnel (Sven Gustafson said academic services includes 219 positions and the proposal would reduce about 48 of them, or roughly 22 percent), trimming school‑based positions tied to enrollment declines, changing specialist staffing models at elementary schools, eliminating elementary summer school, reorganizing school nursing into a six‑region model that staff said would reduce nurse FTE by about 25 positions (a 29% reduction), and cutting a selection of middle‑school and high‑school activities and sports. Staff estimated that a voter‑approved levy of about $11.8 million would lower average class sizes by roughly two students per classroom and generate about 80 FTE.

The administration emphasized the tradeoffs. "Most of our money is tied into salary and benefits — about 87 percent of all our general fund goes into people," Ratliff said, explaining why personnel and program changes make up the bulk of possible savings. Katie Parrott, senior director for the Office of Management and Budget, said prior reductions already removed roughly 136 FTE from earlier budgets and that deferred maintenance, technology and curriculum needs remain unfunded.

On program details, deputy superintendent Sven Gustafson discussed specific reductions and reorganizations: eliminating some senior director and assistant director positions, reducing assistant principals at several schools, cutting certain district‑level coordinators and high school library aides, reducing summer school (a roughly $1,000,000 program at the elementary level), reducing some special education staffing and proposing a change to the teacher specialist model at elementary schools. Kirsten (no last name provided in the record) described a proposed "three‑specialist" elementary model combining PE & health, fine arts (art + music) and library to create more full‑time roles and reduce shared itinerant positions.

On athletics and activities, staff said they analyzed net program cost and participation and proposed discontinuing a set of activities while retaining a core menu and pursuing community partnerships or outsourcing for some programs (staff said bowling, girls hockey, baseball and softball currently have cost‑neutral outsourcing arrangements). The presentation noted facility contracts — for example the dome contract costing about $220,000 — are central to decisions about maintaining some sports seasons.

The budget briefing included estimates of what it would take to meet suggested class‑size targets: staff said meeting the state HB57 targets would require roughly 341 FTE and about $46 million; a more aggressive target from an external study would require about 702 FTE and an estimated $95 million. Staff urged the board and public that state funding increases would be necessary to restore pre‑cut staffing and class sizes.

Board members voiced concern about impacts on safety, counseling, and student engagement. "I'm worried about safety," said Member Higgins, noting research linking counselor availability and graduation outcomes. Member Holloman called the proposed cuts "really bad" and warned they would reduce quality and connection for many students. Several trustees urged vigorous public advocacy in Juneau for additional state funding.

During public comment, dozens of speakers — including many students and teachers — urged the board to preserve particular programs. Multiple West High and Chugiak students urged the board to keep tennis, noting it is low‑cost per participant and lacks outside club alternatives; other speakers urged protecting Ignite gifted services, curriculum coordinators and school nursing. Health staff warned a regional nursing model would leave some buildings without assigned nurses; nurses and school staff questioned whether the regional model would achieve the anticipated savings without service degradation.

Staff repeatedly framed the plan as a set of difficult, structural choices rather than programmatic priorities. "This isn't a good budget for anyone," Ratliff said; "some services will remain, others will be slowed, others potentially cut."

What happens next: the board scheduled additional meetings, including a Feb. 17 regular meeting and a possible special meeting later in February to adopt a budget and any amendments. Administrators encouraged public comment and engagement, and board members said they would continue discussions about possible building consolidation as one way to protect classroom programs while reducing overhead.

Votes at a glance from the evening (board action items): the consent agenda was adopted 7–0; a student expulsion motion was adopted 7–0; the board approved delaying the Oceans Academy charter start to 2027–28 and approved the amended charter application 6–1; the board adopted tentative agreements with the Anchorage Education Association and Anchorage Principals Association by voice votes of 7–0 each.

The board will revisit the FY27 budget proposal in upcoming work sessions and special meetings before adopting a final budget. Public testimony will continue to be a central part of the process as the district refines options and considers further mitigation or outreach to the state for additional funding.