HFY22 Preliminary Budget 2021 1 11

FY22 Preliminary Budget

Revenue

State of Alaska revenue projections for FY22 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 7,861 for FY22, listed in the Five-Year Enrollment Projection document, was used in the Foundation Formula to calculate estimated state revenue.

State revenues include $72,777,816 for Foundation Funding, $276,784 for Quality Schools funding, and on-behalf payments of $10,832,981 for a total State funding of $83,887,581.

Administration has budgeted the maximum allowable for KPB support in the amount of $53,463,093. In-kind services are budgeted at the same level as FY21 of $11,362,732 and $42,100,361 as appropriation. This is $3,463,093 over FY21 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 $138,530,674.

Expenditures

The FY22 expenditure budget was developed using the same staffing formulas as FY21. Expenditure projections for salaries include step increases for current employees. 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 additional 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 FY22 Preliminary General Fund budget is $140,667,559.

Use of Fund Balance

Revenue from all sources for the FY22 Preliminary General Fund Budget totals $138,530,674 and since expenditures and transfers total $140,667,559, it is necessary to use fund balance in the amount of $2,136,885. The amount of unassigned fund balance available at the end of FY20 was $1,677,222 and an increase in the use of fund balance projected for FY21 of $412,649 leaving the unassigned fund balance available for use in FY22 at $1,264,573. The preliminary use of fund balance exceeds what is available in unassigned by $872,312. The board will need to make cuts to the expenditure budget or take action to authorizing a one-time use of committed fund balance.

Budget Discussion

At the budget work session on January 12, 2021, we will take a closer look at the 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.