Background Information:

General Fund

This revision includes final updates to the FY19 Budget after actions by the Alaska State Legislature and the Kenai Peninsula Borough Assembly.

On April 2, 2018, the FY19 General fund operating budget passed with a revenue budget of $142,198,097 and the use of fund balance of $1,300,400 for a total revenue budget of $143,498,497. An expenditure budget of $142,548,497 and a transfer to Food Service for $950,000 for total expenditures of $143,498,497.

Revenue Budget

On May 12, 2018, the State Legislature passed SB142 and was signed into law by Governor Walker on June 22, 2018 approving a one-time increase to our funding in the estimated amount of $1,405,152.

State funding includes Quality Schools funding of $287,724, On-Behalf funding of $9,274,890 and State foundation revenue of $79,434,290 and one-time funding of $1,405,152, for a total State contribution to General Fund Revenue of $90,402,056.

On June 5, 2018, the Kenai Peninsula Borough passed Ordinance 2018-19 appropriating funds for fiscal year 2019. Funding approved by the assembly includes $39,536,406 for appropriation, which included $652,609 over the prior year, and In-Kind services in the amount of $10,854,635 for total funding of $50,391,041. On June 19, 2018, Mayor Pierce vetoed the additional amount of $652,609 over prior year funding.

July 6, 2018 KPB held a special meeting to address the Mayor’s veto. The vote to overturn the veto was 5 in favor, 4 against. Since 6 votes are needed to override, the veto reduction by Mayor Pierce was successful.

KPB Funding for FY19 remains at the same level as FY18 at $38,883,797 for appropriation and $10,854,635 for in-kind services totaling $49,738,432.

With these adjustments, FY19 Revenue from all sources total $141,545,488, and the use of fund balance of $1,430,222 for total revenue and use of fund balance of $142,975,710.

Expenditure Budget

With the change in revenue, administration is making a recommendation to make expenditures cuts totaling $522,787 that include the following:

Purchasing Supervisor	$115,485
School Administration	29,419
Extra-Curricular Stipends	23,665
Art Specialist	120,034
District Office Travel	60,000
School Administration Travel	9,184
State Tournament Travel	15,000
Extra-Curricular Travel	35,000
Connections Supplies	100,000
Extra-Curricular Safety Equipment	15,000
Total Recommended Expenditure Reductions	$522,787

The decrease to the expenditure budget of $522,787 and the transfer to food service of $950,000 will result in an expenditure budget of $142,975,710.

Fund Balance

The anticipated use of fund balance totals $1,430,222, which is $112,113 over the amount previously discussed with the board.

Administration Recommendation

Administration recommends FY19 General Fund expenditures in the amount of $142,025,710 with a transfer to student nutrition services of $950,000 for a total expenditures and transfer in the amount of $142,975,710.

Administration further recommends FY19 General Fund revenues from the State of Alaska totaling $90,402,056. A total of $49,738,432 in revenue from the Kenai Peninsula Borough with $1,405,000 in miscellaneous revenues, and a use of fund balance in the amount of $1,430,222 for a total of revenue and fund balance usage totaling $142,975,710 for a balanced budget.

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