Anchorage Child Care Board Budget Work Session – August 19, 2025

On August 19, 2025, the Anchorage Child Care Board convened a work session focused on developing the FY26 budget. The board reviewed existing programs, discussed new initiatives, and gathered input on how to allocate approximately $1.5 million in remaining program funds. Key topics included child care subsidies, operational stimulus grants, pilot projects, capital funding, wage stipends, startup funds, and an emergency reserve. The board agreed to explore a retention bonus program and a startup fund for in-home care, while leaning toward funding fewer programs at higher levels.

Consent Calendar

• Approved minutes from the May 1, 2025 meeting, with a motion by Khalil and a second by Kevin; passed unanimously.

Public Comments & Testimony

• Rachel, executive director of Little Bears, clarified that the organization’s need for a new building is urgent due to an unsafe roof that could collapse in an earthquake. She emphasized that the funding gap is not a routine expansion but a safety emergency.

Discussion Items

• Child Care Subsidies: The board reaffirmed the $2.5 million allocation for full-year subsidies for child care workers’ children. The program is expected to launch in August 2025, with data on uptake available by late 2025. Some members noted that if less than $2.5 million is spent, a budget amendment could redirect surplus funds.
• Operational Stimulus Funds: $2.4 million has been set aside for direct grants to child care centers via Thread. The application is simple and includes eligibility for licensed programs, accredited camps, and unlicensed in-home providers caring for four or fewer children. The board discussed increasing this amount to $3 million but did not finalize a change.
• Pilot Projects and Capital Funding: The review committee received 35 applications—about 20 for capital and 15 for pilot projects. Total asks are approximately $1.5 million for capital and $1.5 million for pilot projects. The board expressed support for continuing these programs, noting the tight turnaround (projects must be completed by December 31, 2025).
• Wage Stipends / Retention Bonuses: Members Bronwyn, Jessica, and others advocated for a targeted retention bonus program, possibly based on education or longevity. The board discussed the Juneau model and the state’s ROOTS awards. Concerns were raised about administrative complexity and tax implications. The board agreed to explore the idea further, with data from the SEED registry on Anchorage providers.
• Startup Fund for In-Home Care: The implementation team had previously proposed a $200,000 startup fund for new in-home facilities. The board discussed using a small amount (e.g., $50,000) to test demand, and considered incorporating startup support into the operational stimulus program rather than creating a separate bucket.
• Emergency Fund: The board debated setting aside $250,000 to $500,000 as a reserve for unforeseen needs (e.g., a center facing imminent closure). Some members argued the money could be kept as a surplus in the ACE fund rather than earmarked, but others liked the idea of a dedicated emergency fund. The discussion was inconclusive.
• Prioritization: The board took a straw poll on whether to fund more programs at lower amounts or fewer programs at higher amounts. The majority preferred fewer, well-funded programs to maximize impact.

Key Outcomes

• Direction to Staff: Chair Trevor, Vice Chair Jessica, and staff member Austin will draft a budget proposal incorporating: continued child care subsidies ($2.5M), operational stimulus ($2.4M), pilot projects and capital funding (amounts to be determined), and exploration of a retention bonus program and startup fund. The draft will be presented at the July 2025 meeting.
• Public Feedback: The board will encourage public comment on the budget before the July meeting, with the goal of final approval in August to meet the September 2, 2025 deadline for submission to the mayor.
• State Budget Sync: The board noted that $20 million in state child care funding (grants and tax credits) may complement local efforts. Representative Fields may present to the board on state funding.
• No Formal Votes: No formal votes were taken on new programs; the meeting was a work session to gather input for the budget proposal.