In April 2023, Anchorage voters approved Proposition 14, which permanently allocates the municipality’s marijuana tax revenue to support child care and early education programs. This new initiative, called the Anchorage Child Care and Early Education (ACCEE) Fund, represents Anchorage’s most extensive and dependable investment in these areas to date.
The timing of this measure was crucial. Since 2019, the number of licensed childcare programs in Alaska has decreased by 20%, and for the first time in two decades, Anchorage has fewer than 200 licensed programs. Families, employers, and businesses are acutely aware that the scarcity of affordable childcare options is adversely affecting families, the workforce, and the economy. Over half of Alaska’s families are unable to fully engage in the labor market due to issues related to the cost, availability, or quality of child care.
The ACCEE fund is projected to generate approximately $5 million annually, with disbursements beginning in 2025. While this amount will not cover all the needs of the chronically underfunded childcare system, it will enable the Municipality to make innovative and valuable investments in the sector, benefiting families and the economy.
The ACCEE Fund Implementation Team — composed of experts, elected officials, providers, business and military representatives, parents, and others — has been investigating the most strategic and effective ways to utilize the funding. In addition to examining national trends and successful Alaskan programs, the team is looking for ways to maximize the limited funds. They have been actively soliciting public feedback on fund allocation. Over the past few months, the team has hosted nearly a dozen community discussions with parents, providers, and other stakeholders throughout the Municipality, including Eagle River and Girdwood. They also conducted a survey, receiving over 400 responses.
The public has clearly communicated a key priority: improving wages and benefits for childcare providers to stabilize the sector. This feedback, reflected as the top response in our survey and numerous community conversations, highlights the financial struggles of providers. The average childcare worker in Alaska earns less than $30,000 annually, and their families are more than twice as likely to live in poverty. Despite their passion for their work and dedication to children, many providers need help to afford to continue in their roles.
The Implementation Team has considered several initial funding ideas. These include wage and benefit subsidies, offering free child care for the children of providers to support the current workforce and attract new caregivers, partnering with businesses to cover start-up costs and provide technical assistance for new child care and early education programs, and funding capital investments. Many of these strategies have proven successful in other regions of the state and country.
The Implementation Team will assess these potential funding options in the upcoming months. Then, they will propose a funding package that aligns with best practices and public priorities to the ACCEE Fund Accountability Board.
Established by Proposition 14, this board is expected to be formed by this summer. It will be responsible for determining the annual draft budget for the ACCEE Fund, starting with the 2025 budget proposal to be presented to the mayor and Anchorage Assembly this fall. Besides preparing a draft funding package, the Implementation Team is also drafting an ordinance to present to the Anchorage Assembly, outlining the responsibilities, composition, and operations of the ACCEE Fund Accountability Board.
