Anchorage Schools Face Excess Capacity and Budget Woes

Aligning facilities with enrollment is key to stabilizing the district's finances and focusing on student learning.

Mar. 26, 2026 at 10:37pm

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The Anchorage School District is facing a $90 million budget deficit, with projections of additional shortfalls in the coming years. The district has been using reserves and is considering cuts to programs like middle and high school sports. Critics argue the district should prioritize teachers, class sizes, and core programs over maintaining excess, half-empty school buildings. Aligning facilities with enrollment is seen as crucial to stabilizing the district's finances and allowing it to focus on student learning.

Why it matters

Anchorage's school district is grappling with a structural budget deficit driven by declining enrollment and excess school capacity. This instability impacts staffing, class sizes, and program offerings, ultimately affecting students. Addressing the facility footprint is seen as key to restoring financial stability and prioritizing classroom needs.

The details

The Anchorage School District used about $50 million in reserves last year, pushing fund balances to the statutory minimum. This year, the district is facing a $90 million deficit, with projections of $40 million and $30 million shortfalls in the next two years. The district considered eliminating middle and high school sports, only restoring funding after identifying savings from school closures - a trade-off between buildings and programs. With elementary utilization commonly in the mid-60% range, the district is operating roughly 18 to 25 more elementary sites than current enrollment requires.

  • Last year, the Anchorage School District used about $50 million in reserves.
  • This year, the district is facing a $90 million deficit.
  • Next year, the district projects a $40 million shortfall.
  • The year after, the district projects a $30 million shortfall.

The players

Anchorage School Board

The governing body of the Anchorage School District, responsible for making decisions about the district's budget, facilities, and priorities.

Carl Jacobs

A member of the Anchorage School Board.

Margo Bellamy

A member of the Anchorage School Board.

Andy Holleman

A member of the Anchorage School Board.

Aaron Cavagnolo

An Anchorage parent, former math teacher, and community member who has reservations about the district's handling of school closures and facility decisions.

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What they’re saying

“Students come first' and that after spring break their focus will return to 'learning.'”

— Carl Jacobs, Margo Bellamy, and Andy Holleman, Anchorage School Board members

“If students truly came first, ASD would prioritize teachers, class sizes and core programs over maintaining an excess number of half-empty buildings.”

— Aaron Cavagnolo, Anchorage parent, former math teacher, and community member

What’s next

The Anchorage School Board will need to make decisions about which schools to close in the coming years to align the district's facilities with its declining enrollment.

The takeaway

Anchorage's school district must right-size its facilities and budget to prioritize teachers, class sizes, and core academic programs over maintaining excess, underutilized school buildings. Aligning resources with enrollment is crucial to restoring financial stability and allowing the district to focus on student learning.