Anchorage Assembly Work Session on ACE Fund Budget for FY27 - October 2, 2026

The Anchorage Assembly held a work session on October 2, 2026, to discuss the Anchorage Childhood Care and Early Education (ACE) Fund. The meeting featured a presentation from Trevor Storrs, chair of the ACE Fund board, and testimony from Laura Rourke, executive director of Anchorage Montessori School. The main topics were an update on the fund's activities and the board's recommendations for the FY27 budget, which faces a reduced revenue projection of $5.2 million compared to the previous $10 million in FY25.

Public Comments & Testimony

• Laura Rourke, Executive Director, Anchorage Montessori School: Described how the school serves 142 young children (48 toddlers starting at 19 months, 94 ages three through kindergarten) and benefits from all three ACE funding streams (early educator subsidy, operational assistance, capital improvement). She shared that the school's operating budget is roughly $3 million, with 78 cents of every dollar going to salaries, payroll taxes, and benefits. She detailed unexpected September expenses totaling over $21,000 (break-in repairs, fire exit lights, roof leaks) against an annual repairs budget of $15,000. She expressed full support for ACE capital funding but stated she does not support directing ACE funds to the Anchorage School District pre-K programs or Best Beginnings while many licensed child care programs have unmet needs. She emphasized that without capital funding, smaller centers or home providers could be forced to close.

Discussion Items

• ACE Fund Overview and Budget Recommendations (Trevor Storrs): Storrs presented two budget scenarios based on a projected $5.2 million in marijuana tax revenue (down from $10 million in FY25 due to reduced rollover and lower usage). The board's recommended budget zeroes out funding for ASD pre-K ($2 million) and Best Beginnings ($125,000), redirecting those to child care work subsidies ($1.5 million), flexible operational grants ($2.4 million), capital grants ($572,000), and administration (9%). A contingency budget (reflecting the mayor's proposal) reduces child care work subsidies to $1.4 million, cuts operational grants by ~43%, eliminates capital and pilot funding, funds ASD pre-K at 75% ($750,000), and zeroes out Best Beginnings. Storrs argued that early childhood investment is upstream prevention for homelessness and economic stability, and suggested that the alcohol tax could partially fund ASD pre-K to free up ACE dollars for capital projects.
• Assembly Member Comments:
  • Ms. Baldwin Day: Noted that the mayor's administration previously indicated ASD pre-K funding would return to the alcohol tax after FY26. She raised concerns about the impact of free pre-K on home-based providers, as families may leave paid options, harming those providers' viability. She suggested evaluating capital proposals separately for in-home versus center-based care, as small investments ($10,000 or less) could be transformative for home providers.
  • Mr. Voland: Affirmed that the ACE board’s recommendations are advisory and that the assembly retains full authority to make budget amendments, including direct grants to organizations. He encouraged his colleagues to bring forward amendments if they wish to support specific organizations like Best Beginnings.
  • Storrs (in response): Clarified that the only binding commitment is to ASD pre-K for the current program year (~$940,000 remaining). He also addressed the administrative burden of using Biz Express for grant applications, noting the Children’s Trust has offered free access to its own online system as a temporary solution.

Key Outcomes

• No formal votes were taken; the work session was informational and part of the ongoing budget process.
• The ACE board’s recommendations will be considered by the assembly as the FY27 budget moves forward. The assembly will receive additional briefings from the mayor’s office.
• The board reiterated its availability to provide further data and answer questions. The meeting concluded with thanks to the presenters and board members, and the chair adjourned the session.