EFY20 Preliminary Budget

FY20 Preliminary General Fund Budget

Revenue

State of Alaska revenue projections for FY20 were created using a flat $5,930 as the Base Student Allocation (BSA) in the State of Alaska Foundation Funding Formula. The Governor released the FY20 budget to meet the statutory deadline, but it is anticipated that budget will be revised.

The student enrollment projection of 8,681 for FY20, listed in the Five Year Enrollment Projection document, was used in the Foundation Formula to calculate estimated state revenue.

State revenues include $79,009,719 for Foundation Funding, $287,358 for Quality Schools funding, one-time payment of $2,100,012 and on-behalf payments of $10,048,289 for a total State funding of $91,445,378. One-time funding is an increase of $701,114 over FY19 funding based on prior legislative action.

Administration has budgeted KPB support in the amount of $49,738,432, which is the same amount as the borough provided in FY18 & FY19. This budgeted KPB revenue amount is $2,315,656 less than the projected maximum allowable local contribution for FY20 of $52,054,088.

Other budgeted revenues include e-rate, interest earnings, Medicaid and miscellaneous for a total of $1,405,000.

Total General Fund Revenue available for FY20 is estimated to be $142,588,810.

Expenditures

The FY20 expenditure budget was developed using the same staffing formulas as FY19. Expenditure projections for salaries include step increases for current employees. Adjustments were made to healthcare based on the current number of employees that have selected the HDHP, opted out and recommendations for contribution rates by the District’s Health Care broker. Salaries and benefits comprise approximately 80% of total expenditures.

Adjustments to instructional and custodial budgets were made based on a formula that includes projected enrollment and building size. District office budgets were adjusted based on input from administration.

Included in the primary budget is a transfer to Food Service in the amount of $950,000. The total of all expenditures and transfers for the *FY20 Preliminary General Fund budget is $142,371,983.

*Corrected for FY19 to FY20 on Jan. 14, 2019.

Budget Discussion

At the budget work session on January 14, 2019, we will take a closer look at the graphs and financial information provided. We will also discuss the budget and possible increased or decreased funding at the state and local levels, along with possible ramifications to staffing and expenditure reductions.