Why closing schools won't save money

"The six school closures proposed by the Anchorage School District will in future years contribute to an annual loss of approximately 4.5M in state and municipal revenue.

This is something the district leadership knows but has not explained to the public.

Because the State of Alaska funds smaller schools at a higher rate, ASD will forgo state and municipal funds when they close and consolidate these schools.

When the district claims 3.9 to 4.1M in savings from the closures, this is not ongoing but for a few years at best. The plan relies upon a provision in state law that ensures funding at pre-consolidation levels for the first two years after a school is closed with a step down in years three and four. In five years the schools involved in these consolidations will have to fully absorb this loss in funding, facing a reduction in state and municipal funds of 4.5M in total.

The district is not finding efficiencies but, instead, digging a deeper hole with these consolidations..."

"At a board work session Dec. 5, Anchorage School District leadership finally acknowledged what I and others have been saying for a month: closing schools won’t save money long term...

...It’s time for district leadership and the board to get off the consolidation train. It’s time for local community members and experts to help the district come up with a better plan."

BSA Revenue Loss from Consolidation using FY23 ADM.xlsx