BFY18 Budget Revision 2017-7-10
Item Details
- Meeting
- July 10, 2017 – Board of Education Meeting
- Category
- 11. Action Items
- Type
- Action item
- Recommended action
- Approval of the FY18 Original Budget as revised is recommended
Motions
Approval of the FY18 Original Budget as revised is recommended
Moved by Penny Vadla · Seconded by Lynn Hohl
Yes: Joe Arness, Lynn Hohl, Marty Anderson, Mike Illg, Penny Vadla, Zen Kelly
Public Content
Background Information:
General Fund
This revision includes final updates to the FY18 Budget after actions by the Alaska State Legislature and the Kenai Peninsula Borough Assembly.
Revenue Budget
On June 29, 2017 the Legislature passed an operating budget that fully funded the foundation formula and pupil transportation.
State funding remains at the levels passed by the Board on April 3, 2017 that includes Quality Schools funding of $286,147, On-Behalf funding of $7,614,044 and State foundation revenue of $79,228,895, for a total State contribution to General Fund Revenue of $87,129,086.
On June 6, 2017 the Kenai Peninsula Borough passed Ordinance 2017-19 appropriating funds for fiscal year 2018. Funding approved by the assembly includes $38,883,797 for appropriation, and In-Kind services in the amount of $10,854,635 for total funding of $49,738,432.
With these adjustments, FY18 Revenues of $138,247,518 and use of fund balance in the amount of $321,978 bring the total of FY18 General Fund Revenues and Use of Fund Balance to $138,569,496.
Expenditure Budget
There are changes to the In-Kind expenditure budget approved at the April 3, 2017 meeting. As stated previously, the increase of $199,620 in the In-Kind Services Expenditure budget changes the previous amount of $10,655,015 to a total of In-Kind Expenditures of $10,854,635.
In addition, we reinstated 7.5 FTE High school teachers that were previously reduced due to an increase in the PTR. This change will increase the expenditure budget by $750,000 for salaries and benefits.
The net change due to the increase of In-Kind Expenditures, and reinstating 7.5 FTE certified teachers results in an increase of expenditures in the amount of $949,620, for total General Fund Expenditures of $137,469,496. The anticipated transfer to the Food Service fund is budgeted at $1,100,000, and brings the total FY18 General Fund Expenditure and transfers to $138,569,496.
Fund Balance
The anticipated use of Fund Balance in the amount of $321,978 is less usage than was previously authorized by the board with concerns regarding the effect the economy on the Peninsula and Alaska could have on enrollment, administration is taking a conservative approach and only reinstating the 7.5 FTE HS teachers from the reductions made in the status quo budget.