FY22 Preliminary Budget – Updated 3-1-2021

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 $71,118,602 for Foundation Funding, $272,307 for Quality Schools funding, and on-behalf payments of $10,832,981 for a total State funding of $82,223,890.

Administration has budgeted the maximum allowable for KPB support in the amount of $53,080,444. In-kind services are budgeted at the same level as FY21 of $11,362,732 and $41,717,712 as appropriation. This is $3,080,444 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 $136,484,334.

Expenditures

Additional reductions to expenditure budgets in the amount of ($522,011) were identified, lowering the FY22 Preliminary expenditure budget and transfers to $139,767,697.

Use of Fund Balance

Revenue from all sources for the FY22 Preliminary General Fund Budget totals $136,484,334. With expenditures and transfers totaling $139,767,697, a projected deficit of ($3,283,363) remains to be dealt with. It will be necessary to make additional expenditure reductions or once again use fund balance to address the deficit.

After designating the use of $5,791,384 of fund balance in FY21, the amount of unassigned fund balance available at the end of the FY20 was $1,677,222. Due to savings in substitute salaries/benefits and travel, the use of fund balance for FY21 will only be approximately $4,791,384. The $1,000,000 difference will increase the FY21 year ending unassigned fund balance to approximately $2,677,222. If no further expenditure reductions were made, approximately $606,141 of Committed Fund balance would need to be used.

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Minutes for approval