HFY18 Preliminary General Fund Budget

3:30 p.m.

Background Information:

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:

1. 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 in Scenario B within the attached document.

As you can see, Scenario A is the FY18 status quo budget that we have been working on throughout the budget process, which anticipates flat revenues at both the State and Borough levels. Scenario B includes flat funding from the State of Alaska, and a request for maximum funding from the Kenai Peninsula Borough.

With both the State Legislature and the Kenai Peninsula Borough yet to determine FY18 educational funding, it is highly unlikely that either scenario will be correct. Depending on action yet to be determined by both bodies, the final KPBSD budget will most likely fall on the spectrum or continuum somewhere between Scenario A and Scenario B. 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 FY18 Budget after actions by the Alaska State Legislature, the Governor and the Kenai Peninsula Borough Assembly.