DFY19 Preliminary Budget 2018-1-15 REVISED

3:00 p.m.

Background Information:

FY19 Preliminary General Fund Budget

Revenue

State of Alaska revenue projections for FY19 were created using a flat $5,930 as the Base Student Allocation (BSA) in the State of Alaska Foundation Funding Formula as reflected in the Governor’s current FY19 budget.

The student enrollment projection of 8,778 for FY19, listed in the Five Year Enrollment Projection document, was used in the Foundation Formula to calculate estimated state revenue.

State revenues include $79,434,290 for Foundation Funding and $287,724 for Quality Schools funding, and on-behalf payments of $7,614,044 for a total State funding of $87,336,058.

Administration has budgeted KPB support in the amount of $49,738,432, which is the same amount as the borough provided in FY18. This budgeted KPB revenue amount is $2,057,761 less than the projected maximum allowable local contribution for FY19 of $51,796,193.

Other budgeted revenues include e-rate, interest earnings, Medicaid and miscellaneous for a total of $1,405,000.

Total General Fund Revenue available for FY19, not including the use of fund balance, is estimated to be $138,479,490.

Expenditures

The FY19 expenditure budget was developed using the same staffing formulas as FY18. Expenditure projections for salaries include step increases for current employees. Adjustments were made to healthcare based on the current number of employees that have selected the HDHP, opted out and recommendations for contribution rates by the District’s Health Care broker. 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. District office budgets were adjusted based on input from administration.

Included in the primary budget is a transfer to Food Service in the amount of $950,000. Which is a reduction of $150,000 from FY18. The total of all expenditures and transfers for the FY19 Preliminary General Fund budget is $141,837,651.

Use of Fund Balance

The Preliminary FY18 budget has a deficit of $3,358,161. Using one-third of the unassigned fund balance of $1,318,109 would leave a remaining deficit of $2,040,052.

Remaining Deficit Resolution

At the budget work session on January 15, 2018, we will take a closer look at the graphs and financial information provided. We will also discuss the remaining budget deficit and possible increased or decreased funding at the state and local levels, along with possible ramifications to staffing and expenditure reductions.

*1/12/18 Revised to include the 2018-2019 Preliminary Budget.