EFY19 Preliminary General Fund Budget 2018-3-5

3:45 p.m.

Background Information:

The detailed FY19 Preliminary Budget document is presented for review by all interested parties. Board action on a balanced budget (where General Fund revenue and expenditure budgets equal each other) is scheduled for the April 2, 2018 board meeting. The following information is provided to help facilitate the understanding of the FY19 Preliminary General Fund budget.

Enrollment Projection

The process used to project the FY19 enrollment is based on a straight-line method for most schools as of October 27, 2017. The steps involved in arriving at the projection of 8,778 students included:

• Students at school sites were moved ahead one grade level, with some variance based on school administrator input.
• Charter school enrollment projections are in concert with the contractual agreement between each charter school and the district.
• Staffing for Homer Flex, Kenai Alternative and Marathon school locations are set according to amounts stated in Board AR 6183.
• Kindergarten enrollment based on the average actual enrollment for FY16, FY17 and FY18, with some modifications based on additional information from school administrators.

Sites affected by feeder schools were adjusted according to anticipated student movement.

The District was required to submit the FY19 enrollment projection to the State of Alaska Department of Education and Early Development by November 3, 2017.

Revenue

State of Alaska revenue projections for FY19 is based on the Base Student Allocation (BSA) of $5,930 of the State of Alaska Foundation Funding Formula that is reflected in the Governor’s current budget. Same BSA amount as used for the FY17 and FY18 budget years. State revenues include $79,434,290 for Foundation Funding and $287,724 for Quality Schools funding, a total of $79,722,014.

Administration has, for demonstrative purposes, budgeted KPB support in the amount of $51,796,193. This budgeted KPB revenue amount is the projected maximum allowable local contribution for FY19. If maximum allowable funding is not received, it will necessitate further budget reductions of approximately $2,057,761.

Total General Fund Revenue available for FY19 from all sources, not including the use of fund balance, is estimated to be $142,198,097.

Expenditures

Expenditures in the FY19 Preliminary General Fund Budget total $142,198,097. Additionally, there is a transfer to Food Service scheduled in the amount of $950,000. The total of all expenditures and transfers for the FY19 Preliminary General Fund Budget is $143,498,497.

The difference between revenues and expenditures is a deficit of $1,300,400.

Use of Fund Balance

Revenue from all sources for the FY19 Preliminary General Fund Budget totals $142,198,097 and since expenditures and transfers total $143,498,497, it is necessary to use fund balance in the amount of $1,300,400, as previously discussed by the Board.