Mayor Suzanne LaFrance today announced a proposal for a one-time, $12 million education tax levy to appear on the April municipal ballot as the Anchorage School District faces an $83 million funding shortfall for the 2026-27 school year. Cosponsored by Assembly Vice Chair Anna Brawley and Members Felix Rivera and Erin Baldwin Day, this proposed levy will give Anchorage voters the opportunity to help reduce forecasted class size increases and cuts to student programs.
 

 “I strongly believe public education is one of the best investments we can make for our community,” said Mayor LaFrance. “While $12 million doesn’t close such a large gap, shrinking that shortfall will make a significant difference in the classroom and for the success of our students.”
 

The Anchorage School District’s operating budget is primarily funded through a combination of state and municipal contributions. Under the State of Alaska’s school funding rules, the Municipality provides a required amount and has the option to provide additional funding up to a specific local cap.
 

Historically, Anchorage has funded schools to the maximum allowed by the state. However, recent changes at the state level to the Base Student Allocation have created a unique window, allowing the Municipality to contribute an additional $12 million this coming school year.
 

The proposal comes as the Municipality faces its own significant fiscal challenges. The LaFrance administration has spent months exploring long-term revenue diversification, including a recent 3% sales tax proposal. If adopted by voters, a sales tax measure would not result in new revenues for approximately two years.
 

Long-term sustainable revenues from a sales tax remain critical, but would not arrive in time to help the school district. To address the immediate challenge, the Mayor is asking the Assembly to prioritize the stability of local schools for the upcoming election.
 

“While we still need a long-term plan to stabilize our community's finances, the crisis facing our schools is too urgent to wait,” Mayor LaFrance added. “I am asking the Assembly to set aside other revenue measures for the time being so that we can ask voters to focus squarely on protecting our classrooms this April.”
 

Mayor LaFrance will work with the Anchorage Assembly in the coming weeks on the levy proposal. If passed by the Assembly, the one-time education levy will be placed before voters on the April 7 municipal ballot.

If approved by voters, the levy will cost property taxpayers about $27.40 per $100,000 in assessed property value. For example, the owner of a $400,000 home would pay a one-time cost of about $109.60.
 

Despite the immediate focus on education, Mayor LaFrance remains committed to tackling the Municipality’s structural fiscal challenges. The administration continues to work toward a sustainable funding plan that supports a thriving economy and secures the services residents want and need: robust public safety, reliable year-round road maintenance, and modernized infrastructure.