DFY19 Budget Revision Discussion

General Fund

Revenue Budget

The FY19 20-day count ended October 26, 2018 and the Average Daily Membership (ADM) information was submitted to the state on November 7, 2018. The FY19 ADM, which determines the level of state funding for this year, was reported at 8,673.67 students, which was 104.33 students below the 8,778 students projected for FY19. The count included 7,902.19 students in brick and mortar schools and 771.48 students enrolled in the Connections home school program. The original enrollment projection also included 199 intensive needs students. An additional 11 students were identified as intensive needs and the number of intensive needs students submitted to the state was 210. This preliminary ADM will likely change because of the reconciliation process with other districts and the final ADM will be confirmed by the state in February or March.

The total adjustment to the State of Alaska revenue is ($322,997), which includes a decrease of ($315,891) in foundation funding, a reduction in one-time funding of ($6,254) and a change in the Quality Schools in the amount of ($852). The total decrease in state aid of ($322,997) brings the total revenue budget to $141,202,491.

Expenditure Budget

The district reviews actual employees hired in each position in order to adjust salary and benefit accounts from estimates made during the preliminary budgeting process. In addition, for some of the positions that were unable to be filled in Special Education, the salaries and benefits were moved to Professional and Technical services to pay for contracted services. Healthcare costs were reduced due to the Special Open Enrollment that took place and was effective September 1, 2018. We had an additional 15 employees opt-out of coverage and 447 switch from the Traditional plan to the High Deductible Health Plan. The total reduction to salaries and benefits is ($1,627,773).

Changes to the expenditure budget also include a decrease in Charter Schools’ expenditure budgets of ($28,313), which includes all expenditure changes due to the recalculation of additional allowable and state aid. Increases in contracted services in the amount of $319,451 for hard to fill positions such as Speech Therapy, Occupational Therapy and Psychologist services. Adjustments in contracted services, supplies, travel and software for intervention training for $70,730. Increases in software for staff training, professional development, and Special Education curriculum for a total of $188,328. Other adjustments to the budget decrease the expenditures by ($19,887) for a total change to the expenditure budgets of ($1,097,464). This brings the total FY19 anticipated expenditures to $141,878,246.

An adjustment to KPB In-Kind services for changes in KPB resolution 2017-035 are as follows:

Fund Balance

The original FY19 budget listed anticipated use of fund balance at $1,450,222. With the changes to revenues and expenditures explained above, there is a need for reduction in the use of fund balance in the amount of ($774,467). This will bring use of fund balance to $675,755.

Other Information

At this time, this FY19 budget revision has not taken into account any changes due to negotiations. Arbitration is scheduled for late February. Since part of the conversations with the bargaining units included using the DC Forfeiture amounts, we have not included those amounts in this revision.