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 is $8,459,891. This is comprised of 75.5 full time equivalent (FTE) certificated staff and 14 FTE non-certificated staff.

Updated State of Alaska funding

The State of Alaska Legislature has passed the FY23 Operating Budget and is waiting for the Governor’s signature. Contained in the FY23 operating budget is $57 million in one-time funds outside the foundation formula which results in $3,844,884 projected additional revenue. There is also an increase to the Base Student Allocation (BSA) of $30 in the budget, however that increase will not take effect until FY24.

Updated Kenai Peninsula Borough funding

The Kenai Peninsula Borough at the May 3, 2022 Assembly meeting passed Resolution 2022-028 to determine the amount of funding to be provided for school purposes. The resolution passed providing KPBSD with $39,741,388 in local contribution and $12,822,896 for in-kind services for total support of $52,564,284.

The increase of $1,361,210 in the in-kind budget includes $694,322 for insurance and $666,888 in other categories, which includes $654,128 for maintenance.

The State of Alaska budget includes one-time funds for education, that results in an increase in the amount KPB could provide to the school district by $884,323.

Other

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 approximately $5.9M to KPB.

Item Details

Public Content

Public attachments