ANCHORAGE, Alaska (KTUU) – The Boys & Girls Clubs of Southcentral Alaska and its licensed childcare operations are ending all programs and services, according to a memo sent to staff obtained by Alaska’s News Source.
The closure of programs and services stem from long-standing financial challenges, according to the memo. This includes all Clubs, the licensed Childcare Development Center at Woodland Park, and licensed afterschool care at Turnagain Elementary.
“Unfortunately, just looking at, looking at the situation and having to make the painful decision that the board did, we need to cease operations, and we need to look to restructuring in a different way,” CEO of the Boys & Girls Clubs of Southcentral Alaska, Susan Anderson, said.
The last day of employment for staff at the Child Development Center and Turnagain Elementary will be Friday, Dec. 26.
Furloughed Club staff’s last day of employment was Dec. 9.
Changes in funding streams, inflated costs and a decrease in contributions left the Boys and Girls Club of Southcentral Alaska financially struggling.
“We relied heavily on federal funds,” Anderson said. “So that environment has changed throughout the years, and especially just recently. You know, the giving of individuals, that has changed over time, especially recently.”
Anderson said that there is a large gap between what childcare providers often charge, and what their services cost.
“There’s always that gap,“ Anderson said. ”And that’s where you try and find grants, or you try and find contributions, and you try and fill that gap and that is the challenge when we stay ongoing for, you know, quite some time.”
“I mean, that gap has always been there and it was easier to fill in the past.”
Inflating costs have only added to that challenge.
“It’s only gone up,” Anderson said. “It’s not gone down.”
According to publicly available tax documents and ProPublica, the nonprofit ran a deficit four out of five years between 2019 and 2023. The last year totaled $3.5 million in the red.
“This is the most incredibly difficult thing that is happening, and it’s just, it makes me very sad, and I feel for the families and the kids and our employees. I’m incredibly sorry that it has to happen,” Anderson said.
The closure comes in a childcare landscape that is already limited in Alaska, and the country as a whole.
“There’s a shortage. And I think that we have talked about this, people have talked about this here in our state, at least for the last year and some, of how important childcare is, and there’s not enough of it,” the CEO said.
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