FY25 Preliminary Budget

Revenue

State of Alaska revenue projections for FY25 were created using $5,960 as the Base Student Allocation (BSA) in the State of Alaska Foundation Funding Formula, the same BSA as FY24.

The student enrollment projection of 8,230 for FY25, listed in the Five-Year Enrollment Projection document, was used in the Foundation Formula to calculate estimated state revenue.

State revenues include $66,915,412 for Foundation Funding, $268,635 for Quality Schools funding for a total of $67,184,047. On-behalf payments total $7,132,899 for a total State funding of $74,316,946.

State of Alaska revenues decreased ($9,634,762) from FY24 levels.

Administration has budgeted KPB support in the maximum allowable amount of $56,228,307. In-kind services are budgeted at the same level as FY24 of $14,292,451 and $41,935,856 as appropriation.

Other budgeted revenues include e-rate, interest earnings, and miscellaneous for a total of $1,180,000.

Total General Fund Revenue available for FY25 is estimated to be $131,725,253.

Expenditures

The FY25 expenditure budget was developed using the same staffing formulas as FY24. Expenditure projections for salaries include step increases for current employees. Adjustments were made to healthcare based on the current number of employees that have coverage, opted out and a 5% increase for contribution rates. Salaries and benefits comprise approximately 80% of total expenditures.

Adjustments to instructional and custodial budgets were made based on a formula that includes projected enrollment and building size. Utilities were budgeted with a 2% increase over FY23 actuals.

Included in the primary budget is a transfer to Student Transportation in the amount of $550,000 and $145,000 for Extra Curricular travel. The total of all expenditures and transfers for the FY25 Preliminary General Fund budget is $144,754,934.

Use of Fund Balance

Revenue from all sources for the FY25 Preliminary General Fund Budget totals $131,725,253 and since expenditures and transfers total $144,754,934, leaving a deficit of $13,029,681. It will be necessary to use a combination of budget cuts and unassigned fund balance to balance the FY25 budget.

Budget Discussion

At the budget work session on January 08, 2024, we will take a closer look at the financial information provided.

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