Anchorage day cares say a grant cut could force them to close

Anchorage day cares say they may close if the city redirects money voters set aside for child care.

Anchorage voters created the Child Care and Early Education Fund in 2023, dedicating the city's marijuana tax revenue — about $5 million a year — to child care and early education. Now its board is weighing a 2027 budget that would cut operational grants to providers from $2.4 million to roughly $765,000, a drop of nearly 70 percent. Those grants are what centers use to make payroll and keep the lights on.

The squeeze comes from two programs competing for the same pot: Anchorage School District pre-K classrooms and the Best Beginnings literacy program. Pre-K classrooms at Title 1 schools have drawn on a separate city alcohol tax, roughly $2 million a year since 2021. The mayor's office has not said whether it will fund them from another source, so the board drafted two budgets — one keeping both programs in the fund, one dropping them and restoring the grants — and set a vote for Aug. 19.

Providers told the board July 15 that capital money is no substitute. "We might close due to the lack of operational dollars," said Vicki Longleather of Trailside Discovery Camp. Cindy Ruiz, the camp's director, said families would face harder choices, including leaving children at home "too young to be home" or turning to care that is less stable and potentially unsafe. Camp Fire Alaska, the YMCA of Alaska, and Anchorage Montessori School agreed.

Both drafts go out for public comment this week. The mayor and Assembly hold final say.