As your representative, I want to cut through the confusion surrounding education funding. You deserve the truth. Unfortunately, there’s a lot of misinformation out there — some of it intentional, some due to misunderstanding. Either way, I want to set the record straight.
I understand the concerns of parents who want the best education for their children. Every parent hopes to see their child thrive academically and have the opportunities they need for a bright future — I want that for my own children, too. We must find a way to achieve this. Quality education is essential, and with smart choices and meaningful reforms, we can make it a reality for every Alaskan child.
Last year, we debated increasing the base student allocation in the Foundation Funding formula. The governor vetoed a bill that proposed a $680 increase because it did not include the necessary reforms to improve education outcomes for Alaskans — I supported that veto. However, I worked with my colleagues in the Republican majority to pass a balanced budget with the largest education funding increase in Alaska’s history, which included transportation funding and $175 million as a one-time BSA increase of $680 — the amount in the bill that was vetoed.
This year, I am open to supporting additional educational funding and raising the BSA — but only if it comes with real reforms and accountability. Simply throwing more money at a broken system is not the answer. We owe it to parents and students to ensure every dollar is spent effectively.
The question isn’t just how much we’re spending but whether we’re getting the best results for our investment. Despite significant funding, Alaska’s public schools continue to struggle. In 2024, Alaska’s fourth and eighth grade students showed no significant progress in reading and math compared to two years ago, according to “The Nation’s Report Card.” Our students ranked 51st out of 53 U.S. jurisdictions in three of four categories, continuing a downward trend over the last 20 years. This is unacceptable.
Education is about educating our kids — our future. The institutions and activities are tools to achieve that goal, but they are not the goal. I hear the concerns of parents who want better resources and a safe learning environment for their children. I share those goals, and that’s why I’m advocating for meaningful reforms and accountability. Alaskans deserve to know: Are we getting the best outcomes for the money we spend? What reforms will actually improve student achievement? We cannot spend our way out of this crisis.
Alaska’s fiscal outlook is challenging. In the 2025 fiscal year, we’re facing a $987 million deficit within a $14.1 billion budget. By 2026, that deficit is projected to grow to $1.5 billion out of a $16.8 billion budget. Some suggest covering these shortfalls by drawing from our savings accounts, but that is not a sustainable solution. Declining oil production and prices have severely impacted our revenues, and while the state is doing what it can to control costs, we must acknowledge our financial limits.
Right now, Alaska spends more on K-12 education as a percentage of taxpayer income than any other state, with per-student spending ranked sixth highest in the nation at $22,000. In total, we’re spending $2.88 billion annually on public education — equivalent to 5.35% of taxpayer income. Despite this significant investment, our schools are facing financial challenges, with current spending exceeding funding by $106.1 million, or about $810 per student. The proposed education funding plan would add an additional $1.4 billion to the state budget over the next three years, with automatic increases tied to inflation.
In my district, the Kenai Peninsula Borough School District spends approximately $18,744 per student to educate its 8,500 students and is facing a $17 million budget deficit. This is unsustainable. The district is confronted with difficult choices, including the potential consolidation of some schools. I understand that parents are concerned about the impact this could have on their communities — I share those concerns.
School funding is based on a “Foundation Funding” formula set in statute, which includes a base student allocation that districts receive annually per student. Each year, the Legislature fully funds the BSA, giving districts a reliable amount to budget around. However, uncertainty arises from one-time funds, like those allocated last year. While these additional funds provide temporary relief, districts should not depend on them when making long-term financial plans.
These decisions directly impact your family — especially when it comes to potential cuts to the Alaska Permanent Fund dividend and the possibility of new taxes. Some are arguing that we can solve our education challenges by imposing substantial new taxes or further cutting the PFD. I strongly disagree. Alaskans are rightly proud of their PFD, and I am committed to protecting it. Without meaningful reform, however, the proposed education spending increases would eliminate the PFD altogether and still leave a budget deficit. To be honest — if we continue to increase spending without accountability, new taxes will be inevitable. That’s just how the math works.
Life is expensive right now. For many families, the PFD check is not just a bonus; it’s a lifeline. It may be what allows them to catch up on rent, make necessary car repairs, or fill their pantries. That is their money, their dividend as joint owners of the state’s interests and investments, and taking that relief out of their hands is not an acceptable option.
New taxes would also dampen our economy by reducing disposable income for families and increasing operating costs for businesses. This would lead to decreased consumer spending, slower economic growth, and could even drive businesses to relocate to more tax-friendly states. At a time when Alaska’s economy is already facing significant challenges, imposing new taxes would only make things worse.
These are not easy conversations, but they are necessary. We must strike a balance — investing in our children’s future while safeguarding the financial well-being of Alaskan families. This is about more than numbers on a budget sheet; it’s about the future of our state and our children.
I am committed to working with parents, educators, and community leaders to find solutions that prioritize student achievement and fiscal responsibility. I want to hear your concerns and ideas, and I encourage every Alaskan to stay informed and engaged. Together, we can make a real difference.
I am ready to do the hard work of finding solutions that make a real impact. Let’s work together to ensure Alaska’s future remains bright for generations to come.
Sarah Vance represents the southern Kenai Peninsula in the Alaska House of Representatives.