The state of Alaska doesn’t just give schools a set amount of money per student. Instead, funding is adjusted using a formula called the Average Daily Attendance Multiplier (AADM), which provides more money per student in smaller schools. This means that when a school closes and its students are moved to a larger school, the district actually receives less funding per student because larger schools have a lower funding multiplier.

Think of it like this: The state recognizes that smaller schools need extra resources to function, so they receive more money per student. But when a small school closes, those students join a bigger school where the per-student funding amount drops. As a result, the district could lose more money than it saves by closing schools.

Closing Pearl Creek will cost the district money

The school board has cited high facility costs as a reason for closing Pearl Creek, pointing to deferred maintenance needs. However, these costs fall under the borough’s responsibility, not the school district’s. In fact, Pearl Creek was the 4th least expensive school to maintain in FY24, contrary to the board’s claims. Our calculations show that Pearl Creek operates in a net positive to the district when considering these facility expenses.

The truth is, the closure of Pearl Creek Elementary will actually cost the district money in several ways. First, the AADM multiplier will decrease across the district as smaller schools close, meaning the district will lose the higher per-student funding that Pearl Creek provides. Second, when Pearl Creek families were surveyed on school closures, 100 of them indicated they would leave the district entirely. This loss of students would result in a decrease in district funding by about $1 million, further straining the district’s budget.

Additionally, the district is making budgetary calculations for the coming year based on a “hold harmless” provision in the state’s funding model, which guarantees that the district will not lose money due to student attrition until FY30. This provision makes the decision to close Pearl Creek even more short-sighted, as it fails to account for the long-term impact of losing students and funding when that protection expires. The district’s decision does not prioritize the longevity of the district or the welfare of its students.

The Pearl Creek Charter solution

A better solution? Allow Pearl Creek to reopen as a charter school. If this happens, Pearl Creek would take over its own building and operational costs, saving the district money. More importantly, more than 500 students from across the district (including possibly even the 100 interested surveyed out-of-district students) would enroll, which means:

The district wouldn’t have to pay for those students’ operating costs as they are covered by the charter.

The AADM multiplier would increase for the rest of the district, meaning more state funding per student.

In short, it’s a win-win.

Lack of transparency

The district has estimated that opening a Pearl Creek charter school would cost anywhere from $2-$4 million, yet no detailed data has been provided to support this claim, despite multiple requests from the Pearl Creek community. Given the impact of this decision on students, families, and district finances, it is essential their data is available to the public. The Pearl Creek community remains eager to collaborate with the district to review the numbers and ensure all calculations are accurate and well-supported.

The lack of transparency raises serious concerns about how the district is managing funds and whether decisions are being made based on facts — or simply to block a community-driven solution.