ACE Board Meeting Summary: 2026 Budget & Strategic Planning (January 13, 2026)

The Anchorage Childcare Equity (ACE) Board convened on January 13, 2026, to address the 2026 proposed budget, review implementation updates on subsidy and capital programs, and initiate the strategic planning process. The meeting was characterized by significant public commentary urging a shift from capital funding to operational grants to stabilize a sector facing declining state support. After extensive debate regarding the efficacy of retention bonuses and the need for flexible operational funding, the board approved a revised budget and initiated a two-day strategic planning retreat for January 2026.

Consent Calendar

• The board approved the agenda with the addition of an announcement regarding children in out-of-home placements.
• The minutes from the previous meeting were approved unanimously.

Public Comments & Testimony

• Nate Root (President & CEO, YMCA of Alaska): Expressed full support for shifting funding from pilot projects and capital initiatives to operational grants. Root proposed reducing the pilot project allocation from $2 million to $500,000 and reallocating the $1.5 million difference to operational grants to increase flexibility for providers.
• Melanie (President & CEO, Campfire Alaska): Urged the board to strategically increase child care operating grants, citing that declining state and federal support threatens program viability. Melanie noted that her organization is evaluating the future viability of half their programs and expressed concern that without increased operating funds, more closures will occur. She specifically opposed reducing operating support.
• Christina Ebanks (Locrest Children's Center): Supported the call for increased stabilization funding. Ebanks highlighted that the state no longer pays above-market rates for children in out-of-home placements, placing families who care for these children at risk of losing them due to unaffordable costs. She argued that focus must remain on stabilizing current operations amidst inflation.

Discussion Items

• Budget Reform & Survey Results: The Executive Director presented survey data showing 97% support for operational funding and concerns regarding the reimbursement requirement for capital projects. Public testimony reiterated these concerns.
• Retention Bonuses Debate: Chair Trevor proposed eliminating the $1 million sector worker retention bonus to increase operational flexibility. Member Chuck opposed the elimination, arguing that wage supports are essential for worker retention and that the program had broad public support.
• Compromise and Research Motion: The board discussed reducing the retention bonus rather than eliminating it. Trevor proposed a motion to reduce the bonus from $1 million to $500,000 and move the remaining $500,000 to flexible operational funding. This motion also included a directive to conduct an in-depth assessment of the bonus program's impact before final implementation.
• Implementation Updates: Desiree Shepler (Alaska Family Services) reported that 75 family applications and 55 facility applications have been received for the child care subsidy program, representing 118 children. Austin provided updates on pilot projects, noting that 11 of 20 awarded entities have finalized contracts, while others face insurance or responsiveness issues.

Key Outcomes

• Motion Passed: Reduced the sector worker retention bonuses to $500,000 and moved the remaining $500,000 to flexible operational funding, raising the operational budget to $2.4 million (corrected from an initial estimate of $2.5 million).
• Research Directive: Adopted a motion to conduct an in-depth assessment of the retention bonus impact, with results to be reviewed by April 2026 before final implementation.
• Budget Approval: The revised 2026 budget was approved unanimously by the board.
• Strategic Planning: Two board members volunteered to join a planning subcommittee to process data from the upcoming September 4-5 strategic planning retreat. The final strategic plan is scheduled for launch on January 1, 2026.
• Personnel: The board was notified that a hiring committee will re-form to search for a new contractor to replace the current term-expiring position with an overlap period.