Anchorage School District Budget Crisis: $90M Shortfall Threatens Sports and School Closures

Anchorage School District budget deficit of $90 million is forcing city leaders to consider the total elimination of middle school sports and the closure of multiple elementary schools.

NewsBurrow

By Jackson Carter (@JacksonInforms)

The Fiscal Cliff: Anchorage’s $90 Million Education Crisis

The silence in the hallways of the Anchorage School District (ASD) administration building is heavy, punctuated only by the grim reality of a $90 million structural deficit that has reached its breaking point. As of February 17, 2026, the city is staring down a fiscal cliff that isn’t just a collection of numbers on a spreadsheet—it is a direct threat to the heartbeat of the community. Years of stagnant state funding, hyper-inflation, and the evaporation of one-time federal relief funds have forced Superintendent Jharrett Bryantt to present a budget that many are calling a “death sentence” for local education.

This isn’t just a minor belt-tightening exercise; it is a fundamental dismantling of the student experience. The proposed budget for the 2026-2027 school year aims to be the leanest the district has seen in over 15 years. While administrative costs remain locked at a minimal 5-6% of the total spend, the vast majority of the “savings” are being carved directly out of the schools themselves. For parents and students, the shock of the $90 million figure is only now setting in as specific programs and positions begin to vanish from the docket.

The crisis stems from a perfect storm of economic pressures. Despite recent legislative efforts to boost the Base Student Allocation (BSA), the state’s per-student funding formula, the increases have failed to keep pace with the skyrocketing costs of healthcare, utilities, and insurance. Superintendent Bryantt noted that even with a $700 BSA boost, the district remains approximately $1,400 per student behind the purchasing power it held in 2011. The result is a district that is essentially trying to run a 2026 education system on a 2011 gas tank.

Empty Bleachers: The Day School Sports Stood Still

Perhaps the most visceral impact of the budget crisis is the proposed total elimination of middle school sports and a staggering reduction in high school athletics. For thousands of Anchorage youth, the “field of dreams” is being replaced by a “field of zeroes.” The proposal calls for the termination of every single middle school team, while high school programs like hockey, swimming, Nordic skiing, wrestling, and soccer face the axe. Only a handful of “survivor” sports, such as football and basketball, are currently projected to retain funding.

The “shock factor” here cannot be overstated: Anchorage, a city that prides itself on its winter sports culture and Olympic-caliber skiing trails, may soon have a generation of high schoolers who can no longer compete for their schools. Critics argue that these cuts target the very programs that keep at-risk students engaged and in the classroom. At Dimond and South Anchorage High, student-athletes have already begun to protest, citing that for many, sports are the primary motivator for academic excellence and the only path to college scholarships.

Superintendent Bryantt has floated the idea of “outsourcing” these sports to community organizations, but skeptics wonder if local nonprofits have the infrastructure to absorb thousands of displaced athletes overnight. The table below illustrates the dramatic shift in funding for student activities as proposed for the upcoming fiscal year:

Activity Level	FY2026 Funding (Actual)	FY2027 Funding (Proposed)	Impact Description
Middle School Sports	$209,954	$0	Complete Elimination
High School Athletics	$1,816,460	$649,154	64% Reduction; 11 Sports Cut
Staffing (Nurses/Coaches)	Full Capacity	Regional Model	Loss of dedicated school sites

The “Leanest” District: Staffing Cuts and Crowded Classrooms

While the sports cuts grab the headlines, the most devastating long-term impact lies in the proposed reduction of over 500 staff positions. This includes the elimination of approximately 317 teachers, 25 school nurses, and several principals and counselors. The math is simple and brutal: fewer teachers mean larger classes. The district is projecting an average increase of four students per classroom district-wide, pushing many secondary school classes into the high 30s or even 40s.

The shift toward a “regional nursing model” is another point of contention that has sent shockwaves through the community. Instead of having a dedicated medical professional at every school, nurses would be spread across multiple campuses, raising serious questions about emergency response times and the management of chronic conditions like asthma or diabetes. This move alone is expected to save millions, but at what cost to student safety? The “lean” approach is quickly starting to look like an “anemic” one.

Administrative staff are not being spared either, with 57 positions in HR, IT, and custodial services on the chopping block. However, these cuts only account for about $13.7 million of the $90 million gap. The reality is that since 80% of the district’s budget is tied to personnel, there is no way to bridge a gap this large without laying off the very people who make the schools run. Below is a visual representation of how the cuts are distributed across the district:

ASD BUDGET CUT DISTRIBUTION (ESTIMATED)
[####################----------------] 63% - School Staff (Teachers/Nurses/Counselors)
[#####-------------------------------] 15% - Administrative & Custodial
[###---------------------------------] 10% - Special Support & Gifted (IGNITE)
[####--------------------------------] 12% - Athletics & Extracurriculars

The Chopping Block: Fire Lake, Lake Otis, and Campbell STEM

In a dramatic reversal of previous board decisions, the conversation regarding school closures has returned with a vengeance. Just months after voting to keep Fire Lake and Lake Otis Elementary schools open, the board is once again eyeing these facilities for permanent closure. Joining them on the “at-risk” list is Campbell STEM Elementary, a move that has outraged parents who recently voted for a $63.8 million bond intended to upgrade that very facility.

The “shock factor” for Campbell STEM families is particularly high. Many feel betrayed by a system that asked for tax increases for renovations, only to turn around and declare the building “excess” to the district’s needs. The district argues that closing a school saves roughly $900,000 in annual operating costs, but critics point out that the students from these schools still need to be educated elsewhere, likely resulting in even more overcrowding at neighboring sites.

The current proposal suggests offering the Fire Lake and Lake Otis buildings to charter schools like Eagle Academy and Rilke Schule. This “musical chairs” approach to school facilities highlights the desperation of a board trying to avoid total system failure. The community is left to wonder if the savings of $2.7 million from three closures is worth the massive disruption to hundreds of families and the loss of neighborhood identities.

A Tale of Two Cities: The Anchorage vs. Fairbanks Disparity

One of the most frustrating aspects for Anchorage residents is looking north to Fairbanks. While ASD is preparing to gut its athletic and music programs, the Fairbanks North Star Borough School District is reporting a $2.6 million surplus and looking to hire more music teachers. This disparity highlights a crumbling state-wide fiscal strategy that leaves different regions with vastly different educational outcomes based on local property tax health and borough contributions.

Fairbanks has taken a more aggressive legal stance, joining other districts in a lawsuit against the State of Alaska, alleging a failure to meet the constitutional mandate for adequate education funding. Anchorage, meanwhile, remains caught in a political tug-of-war between the school board and the state legislature. The contrast is stark: while one city plans for growth, the other plans for survival. This “zip code lottery” is creating a fractured educational landscape across the Last Frontier.

Anchorage: $90M Deficit, ending sports, closing schools, +4 class size increase.
Fairbanks: $2.6M Surplus, expanding music programs, recruiting new teachers.
The Gap: Years of flat state funding affecting districts disproportionately based on local borough support.

The End of Excellence? Cutting IGNITE and Summer School

The budget crisis doesn’t just threaten the average student; it targets the edges of the educational spectrum as well. The proposed elimination of the IGNITE gifted program for elementary students marks a significant shift away from specialized enrichment. For years, IGNITE has provided a haven for high-achieving students to explore complex topics, but in the new “lean” ASD, such programs are viewed as luxuries the district can no longer afford.

Simultaneously, the end of elementary summer school and reductions in special service positions—including those for deaf, blind, and special education students—threaten the district’s most vulnerable learners. These cuts are projected to save about $9.4 million, but they leave a gaping hole in the support system that many families rely on to keep their children from falling behind. The message being sent is clear: the district is moving toward a “base model” of education with zero frills and reduced support.

Advocates for special education are particularly vocal, noting that Federal law mandates many of these services. By cutting staff in these areas, the district may be opening itself up to costly litigation that could eventually cost more than the initial savings. It is a high-stakes gamble with the future of children who already face the steepest climbs in the classroom.

The April Ballot: A $11.8 Million Hope or a Final Blow?

All eyes are now turning to the April ballot, where Anchorage voters will decide the fate of an $11.8 million education tax levy. Superintendent Bryantt has been candid about the stakes: if the levy passes, he is committed to hiring back approximately 80 teachers, which would effectively cut the projected class size increases in half—from an average of four extra students per room to just two.

However, the levy is not a “cure-all.” Even if approved, the district would still be facing over $78 million in cuts. It is a Band-Aid on a bullet wound, but for a district in triage, every dollar counts. The tension in the community is palpable as homeowners weigh the impact of higher property taxes against the degradation of their local schools. For many, it feels like a hostage situation—pay more, or lose your child’s sports and teachers.

Public testimony has been a mix of desperation and anger. Students like Jacob Morris, a junior at South Anchorage High, have pleaded with the board to save programs like wrestling, which taught him the “work ethic and discipline” necessary for his future. The board is scheduled to take its final vote on the budget by February 24, leaving just days for the community to make its voice heard before the axe falls.

Conclusion: A Community at the Crossroads

The Anchorage School District is at a historic crossroads. The decisions made in the coming weeks will echo through the gymnasiums, classrooms, and neighborhoods of the city for decades. We are witnessing more than just a budget crisis; we are witnessing a debate over the value of the next generation of Alaskans. Is an education without sports, without music, and with overcrowded classrooms still the “excellent” education Anchorage once promised?

As we move toward the final February 24 vote and the critical April levy, it is time for the citizens of Anchorage to join the conversation. The $90 million gap is real, and the “no magic fix” warning from Superintendent Bryantt is a call to action. Whether through local tax support or demanding a fundamental shift in state funding, the future of Anchorage’s youth hangs in the balance. Will we let the lights go out on our student-athletes and teachers, or will we find a way to fund the future? The choice is ours, but the clock is ticking.

What is your take on the proposed cuts? Should sports be outsourced, or are they a fundamental part of public education? Join the discussion in the comments below and share this report to keep Anchorage informed.