"Crumbling Foundations: Alaska’s Rural Schools Face a Funding Crisis"

Alaska’s School Infrastructure Crisis: A Deep Dive into Funding Failures

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This article was produced for ProPublica’s Local Reporting Network in partnership with KYUK Public Media and NPR’s Station Investigations Team. Sign up for Dispatches to get our stories in your inbox every week.

When Alaska House Speaker Bryce Edgmon visited the public school in Sleetmute last fall, he described the building as “the poster child” for the systemic issues plaguing the state’s school funding model. Located 240 miles west of Anchorage, the school has been pleading with Alaska’s education department for nearly two decades for funds to repair a leaky roof that has left parts of the building on the verge of collapse.

A Call to Action

After touring the dilapidated facility, Edgmon, a veteran independent lawmaker, expressed his determination to “start raising a little bit of Cain” upon returning to the Capitol in Juneau for the 2025 legislative session. His sentiments echoed those of other lawmakers who were galvanized by an investigation conducted by KYUK Public Media, ProPublica, and NPR. The investigation revealed that the state has largely ignored hundreds of requests from rural school districts for essential repairs, including Sleetmute’s school. The findings highlighted serious health and safety risks faced by students and teachers in some of Alaska’s most remote villages.

Sen. Elvi Gray-Jackson, an Anchorage Democrat, described the situation as “heartbreaking,” while Sen. Scott Kawasaki acknowledged that “the responsibility lies squarely on the legislature.” Senate Majority Leader Cathy Giessel, a Republican representing part of Anchorage, stated, “We are working to right the ship!”

Insufficient Funding

Despite the urgency, lawmakers were only able to pass $40 million in school construction and maintenance funding during a legislative session where education was a focal point. This amount represents a mere 5% of the nearly $800 million that districts claim is necessary to maintain safe and operational buildings.

In June, Alaska Governor Mike Dunleavy vetoed more than two-thirds of that funding, cutting nearly $28 million. In a video statement, Dunleavy explained, “Basically, we don’t have enough money to pay for all of our obligations.” He attributed the budget crisis to declining oil prices, which have historically been the backbone of Alaska’s revenue.

The Long-Term Crisis

The financial crisis is not merely a short-term issue. State officials have recognized for decades that relying on oil revenue is precarious, yet they have consistently failed to devise a sustainable funding solution for school repairs. Alaska stands out as one of only two states without an income tax or statewide sales tax, further complicating the funding landscape.

According to a 2021 report from the University of Alaska Anchorage, average annual spending on education facilities has plummeted by nearly 60% since 2014, coinciding with a significant drop in oil prices. Currently, overall spending on rural facilities is less than half of what the National Council on School Facilities recommends.

Legislative Momentum

This year, Alaska’s Legislature appeared poised to tackle education funding. Several new candidates from both parties campaigned on the issue and won seats in the November elections. “We flipped an entire statehouse,” said Sen. Löki Tobin, who chairs the Senate Education Committee. Lawmakers filed a bill to fund education even before the session began, and numerous superintendents, students, and school board members traveled to Juneau to advocate for increased funding.

However, despite bipartisan efforts, the legislative session concluded with a compromise bill that provided less funding and eased regulations for charter schools. Dunleavy vetoed this bill, but lawmakers managed to override the veto. Nevertheless, he subsequently used his line-item veto power to cut 3% from the education budget, the largest reduction among all state departments.

The Impact on Rural Schools

This year’s total state budget reached $14.7 billion, approximately $1 billion less than the previous year. Among Dunleavy’s cuts was over $25 million earmarked for school construction and maintenance. School districts must apply for these funds annually, and the reduction means there is insufficient money to cover even the top three projects among the 84 maintenance proposals submitted. Seventeen major construction projects, including the replacement of five rural schools, received no funding at all.

One notable project is a new school in Stebbins, a Yup’ik village where the previous building burned down last year. Currently, over 200 K-12 students are attending classes in temporary structures. Mayor Sharon Snowball reported that several students have left the community to attend boarding schools or live with relatives elsewhere.

Future Prospects

In Mertarvik, a village that recently relocated due to climate change, the school district did not receive the funds it applied for to build a wastewater system for a school set to open in 2026. The district has been unable to provide clarity on how it will proceed with the project.

Governor Dunleavy has called lawmakers back to Juneau for a special session on August 2 to discuss reforms in the state’s education system. However, it remains uncertain whether maintenance and construction funds will be part of those discussions.

The Budget Crisis

Alaska’s budget crisis has severely impacted rural school districts, which rely almost entirely on state funding for building maintenance and repairs. The budget is heavily dependent on profits from crude oil production, which contribute to the state’s Permanent Fund. Returns from this fund cover more than half of Alaska’s operational needs each year.

Crude oil prices from Alaska’s North Slope have dropped by over a third since 2014, leading to a projected budget deficit exceeding $1 billion by next year. Lawmakers have failed to address the warning signs of this crisis for decades, with oil production halving since the early 2000s.

Exploring Solutions

While some lawmakers have called for a statewide income or sales tax, these proposals have not gained traction. A bipartisan working group studied the feasibility of enacting taxes in 2021, but skepticism remains about their effectiveness in addressing the budget deficit.

Former Senator Click Bishop has proposed reinstating an annual education tax, which would raise about $14 million annually—far from sufficient to meet the state’s school maintenance needs. Instead, some legislators advocate for constructing a natural gas pipeline to generate revenue from gas sales. However, this project has been in discussion for over 50 years and is estimated to cost nearly $40 billion.

Conclusion

As Alaska grapples with its education funding crisis, the future of rural schools hangs in the balance. With lawmakers returning to the Capitol for a special session, the urgency for a sustainable solution has never been more critical. The fate of students and teachers in these communities depends on the decisions made in the coming months.

For ongoing updates on this issue, stay tuned to ProPublica and our partners at KYUK Public Media and NPR.