Anchorage city leaders are proposing a one-time tax increase aimed at filling a gap in the Anchorage School District’s budget, with the measure expected to be placed before voters on an April ballot, officials said.
Mayor Suzanne LaFrance, speaking at a news conference Monday morning, said she is asking the Anchorage Assembly to set aside a slate of revenue proposals—including her office’s proposed 3% sales tax—in order to focus on a proposed $12 million education tax levy. “Over the last several months, we have been having a vital conversation around the municipality’s long-term fiscal health and the need to diversify our revenue, but the crisis facing our schools is too urgent to wait,” LaFrance said.
City officials said that if the Assembly approves the education levy, it would be on the April city ballot. If voters pass the tax, the proposal would raise property taxes by $27.40 per $100,000 of assessed property value, officials said.
Anchorage School District Superintendent Jharrett Bryantt said the district has faced budgeting strain over the past decade as inflation increased costs. He said the district has also seen declining enrollment and a large exodus of teachers. Bryantt said last year the Alaska Legislature approved a $700 increase to per-student funding, overriding a veto from Gov. Mike Dunleavy, but that the added money “did not fully restore what schools have lost.”
“As a result, even though we’re in the process of making significant reductions outside of the classroom, deeper than we’ve cut in many, many years, ASD is still facing difficult choices for the ’26-’27 budget,” Bryantt said, describing ongoing financial pressure even as cuts have been made elsewhere.
Bryantt said state law caps how much a city can tax for education and that Anchorage generally taxes up to that limit. He said the state per-student funding increase allows Anchorage to increase the amount it taxes for education. He also said the education levy’s proceeds would be dedicated entirely to addressing high class sizes.
“If voters approve this levy, I will commit to directing these dollars to teaching positions and essential student services,” Bryantt said. “Manageable class sizes are at the top of the list of what our parents desire for their children.”
LaFrance said the administration is sidelining the sales tax proposal while prioritizing the education measure. She said she believes it is “too much to have two revenue measures on the ballot,” adding that a sales tax proposal would not generate revenue for one and a half to two years, while the levy would be immediate. LaFrance said the levy is intended as a more immediate way to support education compared with the sales tax approach.
LaFrance also said the city remains on course toward what she described as a fiscal cliff, with budget gaps expected in the coming years, and that the municipality plans to present scenarios for potential service cuts. Vice Chair Anna Brawley said Assembly members plan to introduce the tax levy proposal during their Tuesday night meeting.
Brawley, who said she is one of the co-sponsors of the levy along with Erin Baldwin Day and Felix Rivera, said eight Assembly members would need to approve the measure by Jan. 27 for it to be placed on the April ballot. Brawley also introduced a 2% increase to the city’s bed tax, but she said she is willing to set aside that proposal and the mayor’s sales tax plan for now to focus on education funding.
Bryantt said the tax levy would not fully close the district’s $83 million shortfall, but he said he is hopeful it will help sustain the district while state leaders work on a longer-term education budget solution. He said the state could see a leadership change as the governor’s race approaches, and he said the district is looking for a long-range fiscal vision and plan for the state, including education. Anchorage’s municipal election is scheduled for April 7.