ACE Fund board outlines two 2027 budget scenarios, leans toward 75% ASD funding and will seek provider input on how to allocate remaining dollars

The ACE Fund Board examined two draft 2027 budgets Thursday and agreed to publish both for public comment while collecting targeted input from providers to shape a final recommendation before a formal August vote. The board’s facilitator, Trevor Storrs, said Christina (staff) will draft a letter to the mayor asking that ASD and Best Beginnings be restored to the alcohol-tax funding or otherwise funded by other dedicated revenue.

Board members discussed a “plan A” that keeps ASD and Best Beginnings fully in the ACE Fund budget and a “plan B” that assumes those line items are funded outside the ACE Fund. Christina presented the worksheet populated with results from a recent Menti poll and said the inclusive scenario (with ASD and Best Beginnings) is currently over budget. She noted administrative costs were reduced to about 9% in the draft and that the operational grants line (previously about $2.4 million) and pilot/capital line (about $1.25 million) would both shrink under constrained scenarios.

“We will be drafting a letter,” Christina said, describing a request that ASD and Best Beginnings “return to either alcohol tax or additional money.”

The central dispute among board members was whether to prioritize operational grants — flexible monthly funding distributed broadly to many providers — or to preserve some capital and pilot funds for one-time projects. Several board members and multiple public commenters argued operational grants keep programs open and serve more children, while others said capital projects can produce transformational improvements for specific sites.

Kevin (board member) said he was “kind of okay with the 50 50 split” as a hedge against future uncertainty, noting one-time capital purchases can produce durable benefits if ongoing operational funding becomes less reliable. By contrast, providers who spoke during public comment urged maintaining operational grants as the highest priority.

Public commenters repeatedly emphasized the practical effects of cuts. Amy Collins, director of Best Beginnings, told the board the fund’s original language included early literacy and urged keeping those supports in the budget. Melanie Hooper, president and CEO of Camp Fire Alaska, said, “childcare operating grants continue to be the most important funding source for providers.” Vicky Longleather of the Alaska Center and Nate Root of the YMCA echoed that operational grants are the most equitable way to sustain programs.

Faced with divided preferences, the board conducted a nonbinding straw poll and landed on a compromise to advance a plan that would hold ASD at 75% (Christina estimated $750,000, enough to fund seven classrooms and a mental‑health coach) while the board and staff collect provider feedback about whether the remaining dollars should favor operations or capital/pilots. Trevor Storrs said the board will publish both plan A and plan B for public comment and take a formal vote in August.

The board did not take a binding vote Thursday; members described the straw poll as a temperature check and asked staff to prepare two draft scenarios and a short questionnaire for providers. The facilitator said the board will defer advocacy to the mayor’s decision but will brief assembly members and other partners after the mayor’s budget is released.

Next steps: ACE staff will publish both draft budgets and a short provider survey this week, collect feedback, and return the board’s final recommendation for a vote at the August meeting.