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• The ASD 2025-26 budget proposal will be presented to the òòò½ÊÓƵ on February 4, 2025.

• The final budget must be approved by the òòò½ÊÓƵ and submitted to the òòò½ÊÓƵ Assembly by March 1, 2025.

• ASD is facing a $100 million plus deficit.

• Without additional state funding, critical cuts are necessary.

• As an effort to minimize impact to classrooms, the òòò½ÊÓƵ is looking at spending savings to a 5% reserve (normally a minimum of 8%).

• More than 80% of ASD’s budget is spent on the classroom

• ASD is working to minimize the impact on classrooms as much as possible.

• ASD is prioritizing reductions outside of classroom instruction first, but layoffs are inevitable.

• Reductions will be necessary to present a balanced budget to the òòò½ÊÓƵ on Feb. 4.

• The exact impact on staff won’t be realized and finalized until the Board finalizes a budget by March 1, 2025.

• Again, this is due to our massive budget deficit

• The Base Student Allocation (BSA), which determines state education funding, has remained flat at $5,930 since 2017.

• If adjusted for inflation, the BSA should be $7,923.

• Without inflation-proofing the BSA, ASD needs to reduce spending each year in order to keep up with the inflating cost of doing business. Due to inflation, ASD’s purchasing power has decreased dramatically, effectively reducing the BSA to about $4,000 in real terms.

• No. The ASD 2025-26 budget is based on receiving no additional state funding.

• However, there is hope for legislative action later this year, but it remains uncertain.

• In past years, the state has provided one-time funding, which does not help long-term planning.

• Public input is a critical piece of ASD’s mission.

• New this year, we added what’s call The Balancing Act 

• A tool for our community to suggest budget solutions, including revenue adjustments and spending cuts.

• In the last two months, ASD received over 200 public submissions.

• The feedback results show strong support for inflation-adjusted BSA funding and more funding for smaller class sizes.

• ASD leaders are actively engaging with state legislators to advocate for increased education funding.

• Senior ASD leaders will meet with House and Senate leaders in Juneau in February.

• ASD is collaborating with school districts across Alaska to advocate for increased BSA funding, improved transportation funding, and support for education-related bills.

• As far as specific legislation, House Bill 69 is an example of what legislators are considering.

• It’s important to note that even with a BSA increase, ASD would still face millions in budget reductions this year and in future years.

• Specialized programs and additional resources that have been sustained despite past budget cuts may now face reductions.

• Non-classroom areas, including departmental supports and administrative services, may be reduced.

• School buildings identified during the Rightsizing process may be repurposed  for charter school use to cut facility costs.

• ASD is working to minimize the impact on classrooms, but staffing reductions will likely lead to larger class sizes in some schools.

• More than 80% of ASD’s budget goes to personnel, meaning that cuts will inevitably affect staffing levels.

• Stay informed via the ASD FY 2025-26 Budget Solutions Hot Topics page.

• Participate in the public process.

• Contacting your local state representative to help them understand the impacts of our budget deficit is encouraged.

• Assistant principals handle a wide range of roles that include discipline, safety, curriculum oversight, staff evaluations, student services, and administrative tasks, among other things.
• 24 assistant principal positions are being cut (15 from elementary schools due to Title I funding that has run out).
• Direct impact of AP cuts on principals and teachers will vary. Ensuring a safe learning environment remains a top priority.

• There is risk in assuming a BSA increase. The District has historically proposed a balanced budget based on known funding with the exception being a very low risk assumption during the 2024-25 budget planning process.
• Hiring new staff at the last minute is not ideal because most educators secure jobs elsewhere.
• The District could issue layoff notices by May 15, but past experience shows that many laid-off staff do not return even if offered their jobs back.

• ASD historically budgets based on current State statute, which sets the BSA at $5,960 per student.
• Assuming an increase could create financial risks if the legislature does not approve additional funding before staffing decisions have to be finalized.
• The District does not have fund balance reserves available to cover unexpected shortfalls.
• Legislative uncertainty exists between House Bill 69 (BSA increase) and the governor’s competing bill, making it difficult to predict funding.

• ASD does not own land; the Municipality holds all real estate and the District manages it.
• If ASD declares a property excess, it returns to the Municipality rather than generating revenue for the District.

• Additional funds do not necessarily mean ASD is adding to savings—it is drawing from fund balance reserves to cover budget gaps across fiscal years.
• Fund balance is essential for emergencies, such as natural disasters or unexpected infrastructure failures.
• The Board could request reversing cuts based on additional funds. (A budget revision is typically done after the Legislature appropriates funds and the Governor signs off.) 

• Potential program reductions at the secondary level could include:
  • World languages
  • Fine arts
  • Student government, peer mentorship, yearbook, and business classes
  • AP courses and specialized CTE programs
  • Larger PE and health class sizes (50+ students per class)
  • Elimination of some co-taught special education classes
• The list represents what different principals are considering based on their specific staffing, student needs, and budget constraints, but much more detailed planning and scheduling will have to take place after the budget is set.
• It is difficult to know the full impact until the staffing processes have played out after the budget is approved.

• One District-level security position is being cut, a recent addition to the department.
• No metric-based security reductions are planned at school sites.
• However, assistant principal reductions at schools will impact security oversight.

• Hiring immersion teachers by mid-April is best practice to allow time for visa processing and relocation.
• Late hiring reduces the applicant pool in all areas, not just for those hired on visas, impacting the availability of quality candidates.

• The critical statutory deadline is May 15, when ASD must issue layoff notices, if necessary, to certificated staff.
• Delays in funding approval risk losing qualified staff to other districts.
• In 2017, 32% of laid-off teachers did not return, citing instability.

The reduction of assistant principal (AP) positions in the òòò½ÊÓƵ School District (ASD) will occur in two separate waves, based on different funding sources and budget approval timelines:

• Number of Cuts: 15 assistant principals at elementary schools
• Reason: These positions were funded through Title I rollover funds, which are no longer available for the next school year.
• Timing:
  • These cuts are not dependent on the general fund budget.
  • Notifications to affected staff began immediately (before the general fund budget was finalized).

• Number of Cuts: 9 assistant principals (across middle and high schools).
• Reason: General budget reductions and staffing realignment.
• Timing:
  • The final budget must be approved by the òòò½ÊÓƵ before these reductions take effect.
  • Once the Board approves the budget, affected assistant principals will be notified and offered the ability to transfer to positions based on provisions of their negotiated agreement.

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