Anchorage School District Rightsizing Plan and Proposed $12 Million Education Tax Levy Target $90 Million Deficit

The Anchorage School District approved an updated Rightsizing plan on February 24, 2026, to close, consolidate, and implement efficiencies at several schools, with changes taking effect at the end of the 2025-26 school year. Three elementary schools, Campbell STEM, Fire Lake, and Lake Otis, are set to close unless the Alaska Legislature passes a long-term funding formula increase of $920 per student.

ASD is grappling with a $90 million structural budget deficit for the upcoming school year. Proposed cuts include a +4 increase in the Pupil-Teacher Ratio, elimination of the IGNITE program, and removal of most secondary sports. These measures respond directly to the funding gap affecting operations across the district.

Proposed Local Tax Measure

Mayor Suzanne LaFrance and Anchorage Assembly members proposed a one-time, $12 million education tax levy for the April 7 municipal ballot to help reduce ASD's $83 million funding shortfall for the 2026-27 school year. The levy would appear on property tax bills for Anchorage residents, representing a direct addition to household costs tied to school funding.

The Alaska House passed House Bill 69 in March 2025 to increase the Base Student Allocation by $1,000, a move estimated to raise public education spending by roughly $275 million. The bill's final status remains pending Governor Dunleavy's consideration and could influence state-level support for Anchorage schools.

Effects on Anchorage Residents

For local families, the combination of potential school closures and the proposed levy means adjustments to daily routines and budgets. Residents near Campbell STEM, Fire Lake, and Lake Otis may face longer commutes or changes in school assignments if consolidations proceed. Elimination of programs such as IGNITE and most secondary sports could shift expenses for after-school activities to individual households.

Next steps include the April 7 ballot decision on the tax levy and continued legislative action on the funding formula increase and House Bill 69. These outcomes will determine the scale of immediate changes for the 2026-27 school year.