"Under state law, the district can only carry over a savings of up to 10 percent of its total annual expenditures", or they lose the funding that they have in excess.... spend it or lose the next State check.

ASD made a profit, state law prohibits this but,is not strong enough to prohibit spending on bonded debt.

AS 14.17.505. Fund Balance in School Operating Fund.

(a) A district may not accumulate in a fiscal year an unreserved portion of its year-end fund balance in its school operating fund, as defined by department regulations, that is greater than 10 percent of its expenditures for that fiscal year.

(b) The department shall review each district's annual audit under AS 14.14.050 for the preceding fiscal year to ascertain its year-end operating fund balance. The amount by which the unreserved portion of that balance exceeds the amount permitted in (a) of this section shall be deducted from the state aid that would otherwise be paid to the district in the current fiscal year.