AFY20 Preliminary General Fund Budget REVISED

The detailed FY20 Preliminary Budget document is presented for review by all interested parties. The following information is provided to help facilitate the understanding of the FY20 Preliminary General Fund budget.

Enrollment Projection

The process used to project the FY20 enrollment is based on a straight-line method for most schools as of October 18, 2018. The steps involved in arriving at the projection of 8,681 students included:

• Students at school sites were moved ahead one grade level, with some variance based on school administrator input.
• Charter school enrollment projections are in concert with the contractual agreement between each charter school and the district.
• Staffing for Homer Flex, Kenai Alternative and Marathon school locations are set according to amounts stated in Board AR 6183.
• Kindergarten enrollment based on the average actual enrollment for FY17, FY18 and FY19, with some modifications based on additional information from school administrators.

Sites affected by feeder schools were adjusted according to anticipated student movement.

The District was required to submit the FY20 enrollment projection to the State of Alaska Department of Education and Early Development by November 5, 2018.

Revenue

State of Alaska revenue projections for FY20 is based on the Base Student Allocation (BSA) of $5,930 of the State of Alaska Foundation Funding Formula. This is the same BSA amount used by the state for the FY17, FY18 and FY19 budget years. State revenues include $79,009,719 for Foundation Funding, $287,358 for Quality Schools funding, and $2,100,012 One-time funding for a total of $81,397,089. State revenue projections do not reflect the Governor’s proposed budget.

Administration has budgeted KPB support in the amount of $52,537,091. This budgeted KPB revenue amount is the projected maximum allowable local contribution for FY20. If maximum allowable funding is received, it will provide needed funding for the student social emotional support plan, continued support of existing programs, and increased costs associated with collective bargaining.

Total General Fund Revenue available for FY20 from all sources $145,387,469.

Expenditures

Expenditures in the FY20 Preliminary General Fund Budget total $144,437,469. Additionally, there is a transfer to Food Service scheduled in the amount of $950,000. The total of all expenditures and transfers for the FY20 Preliminary General Fund Budget is $145,387,469.

The Alaska State Statute on borough educational funding is AS 14.14.60 Relationship Between Borough School District and Borough; Finances and Buildings, and it states in relevant part below:

• (c) Except as otherwise provided by municipal ordinance, the borough school board shall submit the school budget for the following school year to the borough assembly by May 1 for approval of the total amount. Within 30 days after receipt of the budget the assembly shall determine the total amount of money to be made available from local sources for school purposes and shall furnish the school board with a statement of the sum to be made available. If the assembly does not, within 30 days, furnish the school board with a statement of the sum to be made available, the amount requested in the budget is automatically approved. Except as otherwise provided by municipal ordinance, by June 30, the assembly shall appropriate the amount to be made available from local sources from money available for the purpose.

Due to the requirements of Alaska State Statute AS 14.14.60, if we would like to receive maximum funding from the Borough, we need to deliver our total requested budget to the Kenai Peninsula Borough Assembly at the maximum allowable amount as illustrated within the attached document.

With both the State Legislature and the Kenai Peninsula Borough yet to determine FY20 educational funding, depending on action yet to be determined by both bodies, the final KPBSD budget will most likely change. Administration has provided and discussed the type of reductions it will recommend in a deficit situation so the community and board members could have the opportunity to anticipate and discuss the effects of such reductions. Once both bodies have acted, final recommendations will be brought forward for consideration.

At the July board meeting, we will submit a revision that will include final updates to the FY20 Budget after actions by the Alaska State Legislature, the Governor and the Kenai Peninsula Borough Assembly.

REVISED

The FY20 Preliminary Budget is revised to update pages 12-14, pages 16-20 and page 140.