Anchorage School District — 2025-26
Understanding the ASD Budget
A plain-English breakdown for Anchorage residents. Data sourced from the official ASD budget book published February 2025.
ⓘ Independent civic project. Not affiliated with ASD or MOA.
Budget Overview
The big picture for Anchorage's 42,500+ students across 130 schools and programs.
ASD is facing its worst funding crisis in over a decade. The state's per-student funding (BSA) has been essentially frozen since FY2017 — a +0.5% increase over 9 years while costs have risen dramatically. After
adjusting for inflation, ASD receives the equivalent of ~$4K per student in 2017 dollars.
$594.6M
General Fund Budget
-6.8% vs last year
382
Jobs Eliminated
Including 305 classroom teachers
~1%
Reserves After This Year
$49.8M drawn from savings
$107.0M+
Structural Deficit
41,821 students (-197 from
FY25)
Why is this happening? ASD lost $49.1M in one-time
funds that propped up FY25's budget. Those funds are gone for FY26, creating a $107.0M structural deficit. The district is draining its emergency reserves to cover the gap — and still
needs to cut $62.9M.
District profile: ASD serves 42,500+
students across 130 schools and programs, covering 2,000 square miles. The student body is 60% multicultural with 15%
English Language Learners and 100+ languages spoken. The
4-year graduation rate is 82%.
Looking ahead: Without a BSA increase,
ASD projects additional shortfalls of $70.0M in FY27 and
$20.0M in FY28, putting an additional 800 positions at risk over FY27–FY28.
Where the Money Comes From
ASD's $594.6M General Fund comes from 7 sources. Nearly half comes from the state via the Foundation Formula, and over a third comes from local property taxes.
Per-student breakdown: $594.6M ÷ 41,821 students = $14K/student. Of this, $7K/student comes from the state and $5K/student from local property taxes.
Year-over-year revenue shifts: State funding dropped $11.9M (-4.0%) as enrollment declines reduce the Foundation Formula payout. To compensate, ASD is drawing $49.8M from emergency reserves
— +34.0% more than FY25. Property tax revenue rose modestly
by $4.7M (+2.1%), but
this is already at the state-mandated maximum.
Where It Goes
76.3% of spending goes directly to instruction and student services. 87.4% of the entire budget is salaries and benefits.
Instruction &
Student Services (76.3%) Support &
Operations (23.7%)
By Spending Type
Salaries & Benefits
87.4% — $519.6M
Utilities / Building Rent
5% — $29.7M
Other Purchased Services
4% — $23.8M
Supplies & Equipment
2.7% — $16.1M
Insurance & Other
0.9% — $5.4M
By Department / Function
Instructional spending trend: FY22: 75.8% → FY23: 74% → FY24: 69.6% → FY25: 77.1% → FY26: 76.3%. Per-student spending: $594.6M ÷ 41,821 = $14K/student.
All 8 ASD Funds
The General Fund is only one piece. ASD manages 8 separate funds totaling $866.3M. Most non-General Fund money is restricted and cannot offset classroom cuts.
General Fund
Day-to-day school operations — teachers, staff, supplies
FY26 $594.6M
YoY -6.8% (-$43.2M)
Grants Fund Restricted
Restricted state and federal grant money for special programs
FY26 $91.7M
YoY +35.5% ($24.0M)
Debt Service
Repaying school construction bonds (like a mortgage on school buildings)
FY26 $47.3M
YoY -13.3% (-$7.3M)
Capital Projects
Major repairs and renovations to school buildings
FY26 $33.3M
YoY -16.7% (-$6.7M)
Transportation
School buses — home to school and school to school
FY26 $32.3M
YoY +4.6% ($1.4M)
Project Carryover
Authorized prior-year project spending
FY26 $30.0M
YoY 0.0% ($0)
Student Nutrition
School lunches and breakfasts (86.7% federally funded)
FY26 $29.2M
YoY +14.6% ($3.7M)
Student Activities
Revenue from student organizations and events
FY26 $7.9M
YoY 0.0% ($0)
Full picture: Including state pension contributions, ASD's total all-funds
budget is $916.3M. The General Fund ($594.6M) represents 69% of the ASD-managed total of $866.3M.
Most non-General Fund money is restricted by federal or state law and cannot be redirected to
offset classroom cuts.
What's Being Cut
To close the budget gap, ASD is eliminating 381 positions and cutting $62.9M in spending. Here's what's affected.
Why nearly every cut is a person. ASD must close a $107.0M budget gap. Because 87.4% of spending is salaries and benefits,
nearly every cut means fewer staff.
School Closures
Lake Hood Elementary
Closing FY26 — Students reassigned to neighboring schools
Nunaka Valley Elementary
Closing FY26 — Students reassigned to neighboring schools
Programs Eliminated or Reduced
Nurse & Librarian Staffing Changes
Previously all schools received a full-time nurse and librarian regardless of size. Now schools under 300 students get 0.5 FTE. This eliminates 13 nurse positions and 12.5 librarian positions.
$48.6M
School-Based Cuts
357 positions
$8.9M
District-Level Cuts
42 positions
$5.5M
Special Services Cuts
54 positions
$62.9M
Total Cuts
381 positions
Gross vs. net: The 382 net positions eliminated
is after accounting for ~71 new positions being added (reading
interventionists, Indigenous Education director, etc.). Gross cuts total ~453
positions. Prior budget cycles already closed Mt. Iliamna, Mt. Spurr, Abbott Loop, King Tech/AMCS consolidated.
Class Size Impact
The pupil-to-teacher ratio (PTR) increases by 4 at every grade level. PTR is a staffing formula, not a legal class size cap. Actual class sizes depend on school organization.
Raising the PTR is how ASD reduces teacher headcount without targeting individual schools —
every school loses teachers proportionally.
Kindergarten
FY25
22
FY26
26
+4 students per teacher
1st Grade
FY25
23
FY26
27
+4 students per teacher
2nd Grade
FY25
25
FY26
29
+4 students per teacher
3rd Grade
FY25
26
FY26
30
+4 students per teacher
4th–5th Grade
FY25
27
FY26
31
+4 students per teacher
Middle School (6–8)
FY25
31.25
FY26
35.25
+4 students per teacher
High School (9–12)
FY25
31.25
FY26
35.25
+4 students per teacher
What PTR means in practice: A PTR
of 30 means a school with 300 students in that grade band receives 10 teacher positions. At FY25's
PTR of 26, the same school received ~11.5 positions — a loss of 1.5 teachers. PTR is a staffing formula,
not a legal class size cap; actual class sizes can exceed the PTR depending on school scheduling and
course offerings.
Staffing Changes
ASD is losing 382 FTE positions (-7.6%). Over five years, the district has lost 500 positions.
Gross vs. net: 382 is the net FTE change — gross cuts total ~453
positions before accounting for ~71 FTE being added in new or
expanded roles (reading interventionists, Indigenous Education director, etc.).
Five-year trend: Over 5 years, ASD has lost 500 positions (-9.8%). FY26 total: 4,613 FTE, down from 4,995 in FY25. The largest single-category loss is Elementary Classroom Teachers at 306 positions (-16.0%).
Historical Context
Enrollment (ADM) has been declining since FY16, while state funding per student (BSA) has been essentially flat.
Enrollment (Average Daily Membership)
'15 47,562
'16 47,756
'17 47,680
'18 46,949
'19 45,937
'20 45,465
'21 41,320
'22 42,899
'23 43,568
'24 42,526
'25 42,018
'26 41,821*
Students enrolled * Projected
The Self-Reinforcing Cycle
1 BSA stays frozen — costs keep rising
2 ASD makes deeper cuts each year
3 Programs reduced, classes larger
4 Families choose other options
5 Enrollment drops — formula revenue drops
BSA: Actual vs. Inflation-Adjusted Need
'17 $6K
'18 $6K
'19 $6K
'20 $6K
'21 $6K
'22 $6K
'23 $6K
'24 $6K
'25 $6K
'26 $6K−$1,619 gap
Actual BSA Funding gap (inflation)
What would it take? Raising the BSA by $1,619 to restore 2017 purchasing power would cost the state approximately $350M–$400M annually across
all Alaska school districts. By comparison, Alaska's Permanent Fund Dividend has paid out $600M–$3.2B
annually in recent years.
Enrollment decline: Peak enrollment was 47,756 in FY16.
FY26 is projected at 41,821 — a decline of 5,935 students (-12.4%).
The sharpest single-year drop was FY21 (41,320) during COVID, when ADM fell by over 4,000 students. Enrollment partially recovered in FY22–FY23 but has resumed its decline.
Your Property Tax Contribution
How much of your property taxes go to Anchorage schools? Mill Rate determines the rate. Anchorage contributes the maximum local amount permitted by state law. MOA cannot give more.
Select your home value
School operations (2.65 mills) $1,060/yr
School debt service (0.796 mills) $318/yr
Total to ASD $1,378/yr
This is just the school portion. Your total property tax bill also includes MOA general government, roads, fire, police, parks, and other service areas. ASD's operating + debt rate of 6.714 mills is part of your total mill rate.
At the legal maximum. ASD collects $225,508,510 in local property taxes — the maximum allowed by state law. The required local contribution is
$127,700,087, plus an additional allowable
contribution of $97,808,423. There is $0
headroom — no slider adjustment changes the ASD total.
Budget Terms Explained
Budget documents are full of jargon. Here's what the key terms mean in plain English. Terms with a dotted underline throughout this page show definitions on hover or tap.
Charter Schools. ASD funds 8 charter schools — Alaska Native Cultural Charter, Aquarian, Eagle Academy, Family Partnership, Frontier, Highland Academy, Rilke Schule, STrEaM Academy. Per-pupil from General Fund, independently managed. Total charter funding drops ~$1.6M (−5.4%) as per-pupil allocations decrease with the PTR formula increase.
How the Foundation Formula works: Alaska funds schools through a 6-step formula. Step 1: Count students (ADM). Step 2: Apply a district cost factor (Anchorage = 1.0). Step 3: Add special needs funding
weights. Step 4: Apply school size adjustment (smaller schools cost more per student). Step 5:
Add intensive services students. Step 6: Multiply the adjusted student count (AADM) by the BSA to calculate Basic Need. ASD has no
control over any of these factors except enrollment itself.
Get Involved
The budget affects every student, family, and taxpayer in Anchorage. Here's how to make your voice heard.
School Board
Andy Holleman
President
Dave Donley
Member
Pat Higgins
Member
Carl Jacobs
Member
Kelly Lessens
Member
Margo Bellamy
Member
Dora Wilson
Member
- Regular meetings: 6:00 PM, Twice monthly unless noticed otherwise
- ASD Education Center Board Room, 5530 E. Northern Lights Blvd, Anchorage AK 99504
- Phone: (907) 742-4000
- Livestream: ASD YouTube channel
Budget process: ASD submits its budget to the Anchorage Assembly by the First Monday in March.
The Assembly has 30 days to approve it. If Assembly fails to approve within 30 days, the submitted budget becomes effective automatically
Looking ahead: Without a BSA increase from the state legislature, ASD projects
additional shortfalls of $70.0M in FY27 and
$20.0M in FY28, putting an additional 800 positions at risk.