DReview of FY23 Budget
Item Details
- Meeting
- May 2, 2022 – Board of Education Work Sessions
- Category
- 1. Work Sessions
- Type
- Information item
Public Content
Review of FY23 Budget
In January of 2022, the preliminary FY23 budget was presented to the Board of Education (BOE) as follows:
Revenue from all sources for the FY23 Preliminary General Fund Budget totals $131,526,240 and expenditures and transfers total $138,544,728, leaving a deficit of $7,018,488. It will be necessary to use a combination of unassigned fund balance and/or ESSER III funds to balance the FY23 budget.
To close the gap between revenues and expenditures, the BOE directed the Administration to use ESSER III funds. With the projected $7,018,488 deficit and other positions already supported by ESSER III funds for FY23, the anticipated use of ESSER III funds for salaries and benefits $8,459,891. This is comprised of 75.5 full time equivalent (FTE) certificated staff and 14 FTE non-certificated staff.
State of Alaska funding
The State of Alaska Legislature is currently working on the FY23 Operating Budget. Contained in the FY23 operating budget is $57 million in one-time funds outside the base student allocation (BSA), at the same time they are working on HB272 and HB273 which would result in increases to the BSA, and inflation proofing the BSA. If a BSA increase bill passes, the one-time money will be removed from the budget. The estimated revenue from the one-time money, based on projected enrollment, is $3,844,884. If HB272 passes, the increase of revenue based on projected enrollment would by $3,854,470.
Kenai Peninsula Borough funding
Currently, with no increase State of Alaska funding, the maximum allowable that KPB could provide schools is $52,564,284.
If the $57 million in one-time funds are approved or if HB272 is passed, it would increase the maximum allowable by approximately $880K.
In addition, the State of Alaska Legislature has in the FY23 operating budget $220.9 million for school bond debt reimbursement. This is intended to pay the full school bond debt reimbursement for FY23 and to pay the shortfall for FY17 – FY21. Prepaying the short fall from prior years could provide up to $6.1m to KPB.