Why the rest of Alaska shouldn’t pay for Anchorage School District’s mismanagement

The Anchorage School District (ASD) is in financial trouble, and instead of taking responsibility, they’re demanding the rest of Alaska pay for it. ASD has failed to adjust to declining enrollment, ignored opportunities to reduce costs, and now wants to impose a statewide income tax to cover the gap. That’s wrong. Alaskans from rural communities and fiscally responsible districts shouldn’t be forced to subsidize Anchorage’s mismanagement.

Notwithstanding ASD administrator and admin department pay, let’s start with the numbers. ASD’s enrollment has dropped nearly 10%—from 48,000 students in 2016 to under 43,000 by 2022. That kind of decline should’ve triggered serious changes: school closures, administrative reductions, tighter budgeting. Instead, ASD has refused to act. In 2022, the district faced a $68 million budget shortfall and considered closing six elementary schools—a move that could’ve saved $3–4 million. But they stalled. Staffing still makes up 88% of their budget, yet layoffs or even attrition have been minimal. That’s not leadership. That’s not 250K/year administration. That’s kicking the can down the road.

Other districts are doing the hard work. Fairbanks closed three schools in 2022. Rural districts stretch every dollar just to keep the lights on and the heat running. But Anchorage? They want to keep spending like nothing’s changed - and pass the bill to the rest of us.

Now, some Anchorage school board members and advocates are calling for a statewide income tax to fund education. At a recent town hall, folks cheered the idea, saying “revenue fixes everything.” That’s rich, coming from a district that’s already one of the best-funded in the state, and seems to want to shut down every revenue generating strategy in the rest of the state. ASD gets over $16,000 per student each year—more than the national average of $14,347. Yet they’re falling behind.

In the 2022–2023 school year, ASD’s graduation rate was 81.7%—below the statewide average of 83.9% and well below the national average of 86%. Only 39% of students met English standards. Just 33% met math standards. Meanwhile, the Mat-Su Borough School District—right next door—spends less, graduates more students (85.4%), and has much greater student outcomes. ASD financial issues are not a funding problem. They are a management problem.

Even if we agreed to raise revenue, a statewide income tax is the wrong way to do it. The fiscal policy working group of 2021 determined that an income tax will not fix Alaska’s structural budget deficit issues – especially not if it all goes towards ASD. Alaska hasn’t had an income tax since 1980, and voters and lawmakers have consistently rejected the idea. Governor Dunleavy doesn’t support an income tax; sales tax proposals have gone nowhere; and Senate plans to raise oil, or corporate taxes will drive industry out of Alaska. Simply put, there’s no political will for broad new taxes, especially ones that punish rural Alaskans.

Let’s not forget that many rural residents live in Regional Education Attendance Areas (REAAs). These districts don’t have a local tax base and rely entirely on state and federal dollars. They can’t raise extra money the way Anchorage does, which covers 37% of its education budget locally. REAA communities already pay more for groceries, fuel, and basic services. Now they’re supposed to pay for Anchorage’s waste and declining enrollment, too? That’s not just unfair—it’s unjust.

Anchorage has options. They already contribute millions locally: $9 million for student transportation, $2 million for pre-K. If residents want better-funded schools, they should ask their local leaders to raise more money at the municipal level and ask the legislature to raise the cap. That’s what local control is all about. Don’t drag the rest of the state into it. ASD could, alternatively, fund major school maintenance or construction on their own, without state help. That would make more funding available to REAA schools for their school maintenance.

And the public sees what’s going on. Posts on X call out ASD for bloated administration, accusing the district of keeping “unnecessary positions” while “holding the state hostage” for more money. That might be strong language, but it reflects a frustration many Alaskans feel.

Some might say this is just about money, but there’s a broader principle at stake: accountability. When a district overspends and under-delivers, the solution isn’t to bail them out. It’s to fix what’s broken. Rewarding ASD with more cash—especially from people who don’t benefit from their services—only encourages more of the same.

To be clear, I support public education; and like every Republican I know, I support kids and excellent teachers. I want every Alaska kid to have a shot at success, whether they’re in Anchorage, Aniak, or Anaktuvuk Pass. But funding has to be fair, and outcomes have to matter. Right now, Anchorage is asking for more money without delivering results—and expecting the rest of us to pick up the tab.

That’s not going to fly. Not on my watch.

The rest of Alaska shouldn’t have to clean up Anchorage’s mess. Let ASD fix its own house first.

Kevin McCabe represents District 8 in the Mat-Su.