Anchorage School Board backs public school scholarship groups under new tax credit

The Anchorage School Board voted 7-0 Tuesday to ask the Association of Alaska School Boards to support scholarship-granting organizations dedicated to public school students under a new federal tax credit, with proposed safeguards against the money replacing public school funding.

The credit takes effect Jan. 1, 2027. Taxpayers can claim up to $1,700 a year for donations to state-approved scholarship-granting organizations, or $3,400 for a married couple filing jointly if each spouse gives, under Treasury's proposed rules, said board Vice President Kelly Lessens, who brought the proposal. The resolution argues scholarships could cover tutoring, transportation and other public school supports. Alaska opted in for 2027.

The statewide association opposes vouchers. Member Paul McDonough raised that concern at the governance committee meeting Sept. 24, questioning whether a program that is "voucher shaped" and "looks like a voucher" counts as one, and saying that technically, it does not. His additions Tuesday state that the association's support "shouldn't be read as support for reducing or replacing public funding," citing funding losses in Louisiana, Indiana and Ohio voucher programs and Arizona findings that many voucher users never attended public school. The resolution calls on the governor and the Alaska State Legislature to build publicly accountable revenue, and it asks scholarship groups to voluntarily prioritize the neediest students and report publicly.

Lessens raised a timing concern. The state plans to submit its final list to the IRS by Dec. 1, though federal guidelines allow until Feb. 15. "I am concerned that the state of Alaska is rushing the submission of its list of SGOs to be done before a new governor is sworn in," she said, adding that public schools need time to design programs. Gov. Mike Dunleavy approved the first 20 organizations Oct. 2, saying he wanted students to benefit "as soon as possible." The state says it will include every group that timely establishes it meets federal requirements.

Federal rules require each organization to be a 501(c)(3) nonprofit spending at least 90% of its income on scholarships for at least 10 students who do not all attend the same school.

Dave Weber, a father of three Anchorage students, testified that private schools are "way ahead of where the public schools are right now."

The resolution now goes to the statewide association ahead of its November meeting. Member Margo Bellamy invited Lessens and McDonough to present it to the association's resolutions committee.