FFY21 Budget Update

FY21 Updated Budget Information - May 2020

Since the Approval of the FY21 preliminary budget, as you know a lot has changed.

The Kenai Peninsula Borough (KPB) at the April 21, 2020 assembly meeting passed Resolution 2020-027 that set the minimum amount of funding to the school district at $45,000,000. Based on subsequent conversations between KPB Mayor and Administration; there is an agreement that the final amount to be provided by KPB will be $50,000,000.

Revenue

• State of Alaska - Base Student Allocation at same levels as FY17, FY18, FY19, FY20 and FY21 - $5,930

• State of Alaska – $30 Million One-time funding was passed by the legislature, which would of provided $2,072,133 in additional State funding, but was vetoed by the Governor.

• Kenai Peninsula Borough Support – FY21 Preliminary budget has been adjusted to $50M, which is $2,776,473 below the maximum allowable.

Expenditures

• The Health Care 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 Health Care is 85/15 per the negotiated agreement.

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

• 6.0 FTE Elementary School Counselors included in this updated expenditure budget

• Updated In-Kind expenditure budgets to match KPB Resolution 2020-027 and additional information.

Use of Fund Balance

Revenue from all sources for the FY21 Preliminary General Fund Budget totals $139,744,457 and since expenditures and transfers total $145,430,368, it is necessary to use fund balance in the amount of $5,685,911. It is estimated that such usage will deplete all available unassigned fund balance.