CLAYDOWN FY 22 Budget Revision

Background Information:

General Fund

Revenue Budget

The FY22 20-day count ended October 22, 2021, and the Average Daily Membership (ADM) information was submitted to the state on November 5, 2021. The FY22 ADM, which determines the level of state funding for this year, was reported at 8,301.07 students, which was 440.07 students above the 7,861 students projected for FY22. The count included 7,130.26 students in brick-and-mortar schools and 1,170.81 students enrolled in the Connections home school program. The original enrollment projection also included 196 intensive needs students. The number of intensive needs students submitted to the state was 208, an increase of 12. This preliminary ADM will likely change because of the reconciliation process with other districts and the final ADM will be confirmed by the state in February or March.

The total adjustment to the State of Alaska revenue is $2,644,365, which includes an increase of $2,637,249 in foundation funding, and a change in the Quality Schools in the amount of a $7,116.

The Kenai Peninsula Borough (KPB), through the American Rescue Plan Act of 2021, provided an additional $2,000,000 in funding for the local education contribution bringing the total amount of support from KPB to $50,000,000.

The total revised revenue budget is $136,048,255.

Expenditure Budget

The district reviews actual employees hired in each position to adjust salary and benefit accounts from estimates made during the preliminary budgeting process. Total decrease to salary and benefit accounts, not including Charter schools, is ($2,399,958).

Changes to the Charter Schools’ expenditure budgets of ($308,882) includes changes to salaries/benefits, supplies and other expenses due to the recalculation of additional allowable and state aid.

Other expenditure adjustments include, custodial and instructional supply budgets, curriculum, vape sensors, equipment, Middle College tuition and books, and Hanover research. Other adjustment to expenditures total $1,168,260.

Per KPB ordinance 2021-19-08, the in-kind budget increased by $99,954 and appropriation decreased by the same amount.

At the end of FY21, a change in accounting procedures for student activities requires us to move $145,000 from student travel to transfers. Bringing the total transfers, including $550,000 to student nutrition, to $695,000.

This brings the total FY22 anticipated expenditures to $132,640,486.

The original FY22 budget listed anticipated use of fund balance at $2,677,222. With the changes to revenues and expenditures, we anticipate that we will not be using fund balance in FY22.

The projected increase to fund balance will be $3,407,769 for FY22

Administration requests approval of FY22 Budget Revision.