KPBSD FY18 Budget 101
Where does revenue come from?
KPBSD receives funding from three sources:
- State funding (this is a constitutional mandate)
- Borough, or “local” funding ($ linked to state funding)
- Federal and Grant funds (designated expenditure categories that are non-transferable to other expenses)
A school district does not have authority to raise its own revenue.
What is an expenditure?
Primary expenses are staff and classroom instruction. Like a business, planning and operations, information systems, utilities, etc. are also included.
How-to balance the budget?
- Align revenues and expenditure
- Request that the state legislature, and the Kenai Peninsula Borough fully fund education
- If available, use General Fund reserves (savings account) to fund deficit, in order to avoid staff reductions and increased class sizes
Balancing the FY18 Budget
Status Quo Revenue projects a deficit of ($ 3.45 million)*
Projected FY18 Expenditure Reductions (2.48 million)
Use of General Fund Balance (savings) 1.13 million
*The Alaska State Legislature may recommend and vote to make additional reductions to education funding.
The Kenai Peninsula Borough has the ability to increase support to education funding, by contributing to the maximum allowable contribution, also called a cap.
Go-To resources:
KPBSD Fiscal Reality – Our challenge
“Alaska is addressing its ongoing fiscal challenges, and it is important that everyone is involved in the conversation to ensure a long-term fiscal plan is finally implemented.”
— Superintendent Sean Dusek, Kenai Peninsula Borough School District
KPBSD Reductions:
For several years, budget reductions have come through efficiencies, Pupil to Teacher Ratio (PTR) increases, and reduction of staff.
The effects of these cuts have been kept as far away from the classroom as possible and most of the public do not realize these are already in effect. But, $8,550,530 has been reduced since FY15.
FY15 Budget Reductions ($1,254,000)
FY16 Budget Reductions (1,375,000)
FY17 Budget Reductions (3,436,829)
FY18 Budget Reductions (2,484,701)
Total Budget Reductions ($ 8,550,530)
Further reductions to education funding in FY18 will increase the deficit, thus likely impact KPBSD staff, classroom instruction and support.
If the Alaska State legislature passes additional revenue cuts to state education funding, the KPBSD $3.45 million budget deficit will increase. And, state reductions can affect the Kenai Peninsula Borough maximum allowable contribution to KPBSD. This is the additional state funding impact to KPBSD:
- 1% Reduction to BSA = ($ 1.05 million)
- 3% Reduction to BSA = ($ 3.18 million)
- 5% Reduction to BSA = ($ 5.29 million)
Ten KPBSD teachers equates to one million dollars.
What can you do? #ideas
www.KPBSD.org
