AFY19 Budget and Joint Work Session

Background Information:

FY19 Budget & Joint Assembly Worksession

We are currently in the middle of the process to make the initial projections for revenues and expenditures for the FY19 KPBSD General Fund Budget. With the recent completion of the 20 Day OASIS October Count, we are able to be farther along with revenue projections than we are with expenditure projections.

Revenue Budget

The projected enrollment for FY19 that is the basis of our revenue budget was reported to the state on November 3, 2017. We have projected 8,043 students in brick and mortar schools and 735 correspondence students for a total projected enrollment of 8,778. This projection is approximately 67 students more than our initial FY18 20 Day OASIS October Count. The increase is based on the projection that the outgoing class of seniors is a much smaller class than our incoming class of kindergartners will be. Our incoming kindergartners have been larger classes for the last few years.

We have also projected 199 intensive needs students for FY19 which is an increase of ten students over our projections for FY18.

In our preliminary work on the FY19 revenue budget at the State level, we assumed no change to the Foundation Formula or the Base Student Allocation (BSA) value. The governor’s FY19 budget is expected by mid-December and that will provide us with additional information to use in our calculations. We have attached the FY19 Initial Foundation Revenue estimate for your review. The FY19 Initial Foundation Estimate for the State is up slightly from our FY18 Initial Foundation Estimate.

We have also attached an initial projection of the Borough Required and Maximum Allowable Revenue Estimate for your review. With the increase in Full Taxable Value, and the small increase in State support, the estimate for the KPB Maximum Allowable Local Contribution has increased to $51,730,017 which is $2,057,761 more than the KPB FY18 support. The Local revenue provided by KPB is provided through appropriation and in-kind services. Any increase within in-kind services results in a decrease in appropriation. For FY19 Budget purposes, we will start with status-quo amounts for each category.

Expenditure Budget

The enrollment projection is also the starting place for our expenditure budget, and Human Resources is currently working on the FY19 preliminary staffing. We plan to bring forward a status quo budget based on existing staffing formulas. We are also in the process of estimating FY19 cost increases related to health care costs and salary schedule movement. Other estimates such as utilities are based on historic data. These numbers will not be finalized by the December meeting.

More information will be provided as it becomes available.