Date: July 24, 2003

To: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

Thru: Dale Bagley, Mayor

From: Jeffrey E. Sinz, Finance Director

Subject Ordinance 2003-19-06, Approval of revised KPB School District 2003-2004 Budget and supplement appropriation to increase Borough contribution for school purposes

On May 6, 2003 the assembly adopted Resolution 2003-049, approving the total FY2003-04 school district budget of $87,270,459 and stating the intent to appropriate $31,100,465 in local funding to support the school budget. The local funding was the maximum allowable under AS 14.17.410. On June 3, 2003 the assembly enacted Ordinance 2003-19, appropriating funds for fiscal year 2003-2004, including school district funds.

On June 6^th, the state legislature enacted and the governor signed into law Senate Bill 202. The net effect of this bill on the KPB School District is to increase the allowed budget by $1,908,633. This includes an increase in the allowed Borough's contribution of $525,658 over the original FY2004 budget. This will bring the total local contribution to $31,626,123. The total revised budget for the School District would be $91,179,092.

The School Board approved a revised 2003-2004 budget at its meeting on July 7, 2003 and this ordinance reflects the supplemental appropriation requested and approved by the School Board. The letter from Donna Peterson dated July 8, 2003 is attached for your reference.