BFY21 Preliminary General Fund Budget

FY21 Preliminary General Fund Budget

Revenue

State of Alaska revenue projections for FY21 were created using a flat $5,930 as the Base Student Allocation (BSA) in the State of Alaska Foundation Funding Formula.

The student enrollment projection of 8,573 for FY21, listed in the Five Year Enrollment Projection document, was used in the Foundation Formula to calculate estimated state revenue.

State revenues include $77,652,172 for Foundation Funding, $285,929 for Quality Schools funding, and on-behalf payments of $10,626,356 for a total State funding of $88,564,457.

Administration has budgeted the maximum allowable for KPB support in the amount of $52,776,473. In-kind services are budgeted at the same level as FY20 of $11,048,424 and $41,728,049 as appropriation. This is $264,382 over FY20 level.

Other budgeted revenues include e-rate, interest earnings, and miscellaneous for a total of $1,180,000.

Total General Fund Revenue available for FY21 is estimated to be $142,520,930.

Expenditures

The FY21 expenditure budget was developed using the same staffing formulas as FY20. Expenditure projections for salaries include step increases for current employees and a 2% increase that is contingent on FY20 one-time funding from the State of Alaska. If the one-time money is not funded, we will remove the 2% increase from the budget. Adjustments were made to healthcare based on the current number of employees that have coverage, 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. Utilities were budgeted using a three-year average. District office budgets are under review and some adjustments may be needed.

Included in the primary budget is a transfer to Food Service in the amount of $750,000. The total of all expenditures and transfers for the FY21 Preliminary General Fund budget is $144,183,314.

Use of Fund Balance

Revenue from all sources for the FY21 Preliminary General Fund Budget totals $142,520,930 and since expenditures and transfers total $144,183,314, it is necessary to use fund balance in the amount of $1,662,384.

Budget Discussion

At the budget work session on January 14, 2020, 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.