MSBSD proposed school closures enter public review process

Faced with a projected $23 million shortfall driven by stagnant state funding and rising costs, the Matanuska-Susitna Borough School District (MSBSD), the second largest school district in the state, is seeking public input on major budget cuts for the 2026-2027 school year, including potential reductions in staff and transportation services. District officials warn that utilizing reserves is not sustainable, putting the spotlight on upcoming prioritization surveys to bridge the gap.

As parents and staff brace for potential service reductions and the school board and district officials work to close the massive budget deficit for next year, the possibility of school closures has made its way into the conversation. The schools that may be closed are Larson Elementary in Wasilla, Meadow Lakes Elementary and Glacier View School.

“It is important for our community to understand that these are proposals — no final decision has been made,” said Rick Morgan, President of the Classified Employees Association which represents Education Support Professionals, including custodians, paraprofessionals, and nutrition staff.

The school district says it is in the FY27 preliminary budget process, and the MSBSD administration will release a full set of recommended reductions this week, which will be presented to the MSBSD School Board at the next school board meeting on March 4.

From there, the school board could adopt the preliminary budget, and planning related to any approved changes would begin after that date.

“March 18 is the adoption of a preliminary budget, not the final budget. The final adopted budget occurs later, after state and borough funding is finalized,” said John Notestine, the Communications Director for the MSBSD.

The MSBSD is not alone in facing a budget crisis, as districts across Alaska are facing similar situations. The Anchorage School District (ASD), which is the largest district in Alaska, is facing a projected $90 million deficit for the FY27 school year, and is considering cutting over 500 positions, including over 300 teachers, as well as the potential closure of three elementary schools: Fire Lake, Lake Otis, and Campbell STEM.

The ASD budget, aimed at “rightsizing,” threatens to increase class sizes by four, cut all middle school sports, eliminate many high school sports, and reduce nursing and special education staffing.

“Districts across Alaska are facing similar conversations as they try to build budgets without stable, predictable state education funding. When funding remains uncertain year after year, districts are forced into difficult proposals that affect students, employees, and entire communities,” says Morgan, who also looks at an “ongoing erosion of trust in brick-and-mortar public schools” as a contributing factor, especially when it comes to student enrollment. “As enrollment declines, funding follows students elsewhere, and neighborhood schools become increasingly vulnerable. That cycle is now playing out across the state.”

Currently, the MSBSD spends the lowest amount per pupil in comparison to the “Big 5” districts including Anchorage, Fairbanks-North Star, Kenai, and Juneau, which spends the highest, at $20,265, according to the MSBSD FY2027 preliminary budget that was presented back in December.

The biggest expenditure is the employee salaries and benefits, which account for 74.2% of expenditures, and has a projected increase of just over $10,000 from last year.

For community members who want to learn more about the District's spending and revenues while also providing input, the MSBSD has created a budget simulator. The simulation starts with an estimated $22.5 million deficit based on the FY27 Preliminary Budget. Details of how the District arrived at these revenue and expenditure budgets, as well as the overall budget outlook for FY 2027, can be also found there.

In this simulation, you can adjust unlocked revenue and expenditure categories according to your priorities and real-time updates will show the impact of your funding choices at the top of the screen.

It is important to note that the simulation only focuses on revenue sources and services within the General Fund--other funds such as federal grants, Food Services, and capital improvement projects, are not included.

Community members may also submit their budget scenario from the simulation, even if it doesn't balance exactly, to provide input to the School Board.

Meanwhile, Morgan says that CEA’s immediate focus is on the people affected by a possible closure, stating that a building closure does not automatically mean job loss, as any staffing changes must follow the negotiated agreement, including seniority and reassignment rights.

What remains is if the schools are closed, the impact it could have on those neighborhoods and surrounding schools that will have to absorb the students into the classrooms.

“Strong neighborhood schools are the foundation of strong communities. Decisions of this magnitude deserve a transparent process, careful review, and meaningful public input.”

Both Morgan and Notestine say that feedback is welcome and encourage community members to offer public testimony at both the March 4 and March 18 school board meetings, as well as the Matanuska-Susitna Borough Assembly Meeting on March 3.

“We encourage parents, employees, and community members to attend the Borough Assembly meeting on March 3rd and the School Board meeting on March 4th and make their voices heard before any final action is taken,” said Morgan. “The funding decisions made at those meetings will determine what ultimately moves forward. These are the points in the process where public input matters most.”

To view and use the budget simulator, please visit www.matsuk12.abalancingact.com/fy2027-preliminary-deficit