CFY21 Preliminary Budget, Bond Proposals *LAYDOWN

The detailed FY21 Preliminary Budget document is presented for review by all interested parties. The following information is provided to help facilitate the understanding of the FY21 Preliminary General Fund budget.

Enrollment Projection

The process used to project the FY21 enrollment is based on a straight-line method for most schools as of October 18, 2019. The steps involved in arriving at the projection of 8,573 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 FY18, FY19 and FY20, 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 FY21 enrollment projection to the State of Alaska Department of Education and Early Development by November 5, 2019.

Revenue

State of Alaska revenue projections for FY21 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, FY19 and FY20 budget years. State revenues include $77,652,172 for Foundation Funding, and $285,929 for Quality Schools funding, for a total of $77,938,101.

Administration has budgeted KPB support in the amount of $52,776,473. This budgeted KPB revenue amount is the projected maximum allowable local contribution for FY21.

Total General Fund Revenue available for FY21 from all sources $142,520,930.

Expenditures

Expenditures in the FY21 Preliminary General Fund Budget total $144,026,830. Additionally, there is a transfer to Food Service scheduled in the amount of $750,000. The total of all expenditures and transfers for the FY21 Preliminary General Fund Budget is $144,776,830.

• The employee salaries were calculated with step increases.

• The Healthcare calculation was based on FY20 HDHP rates + 7%. This amount may be updated at a later date if more information is received. The split for healthcare is 85/15 per the negotiated agreement.

• A lapse calculation of 2% was used for salaries and benefits.

• 6.0 FTE Elementary Counselors are included in the budget.

The difference between revenues and expenditures is a deficit of $2,255,900.

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 $144,776,830, it is necessary to use fund balance in the amount of $2,255,900. The remaining unassigned fund balance as of 6/30/2019 was $3,929,885, leaving an anticipated unassigned fund balance of $1,673,985.

*March 2, 2020

This item was revised to include the three LAYDOWN documents.