Date: May 5, 2005

To: Gary Superman, Assembly President

Members, Kenai Peninsula Borough Assembly

Thru: Dale Bagley, Mayor

Scott Holt, Finance Director

From: Craig Chapman, Controller

Subject: Ordinance 2004-19-55, approval of revised KPB School District 2004-2005 budget and supplemental appropriation to increase borough contribution for school purposes

On May 4, 2004, the Assembly adopted Resolution 2004-047, approving the total FY2004-05 school district budget of $95,056,368 and stating the intent to appropriate $32,635,743 in local funding to support the school budget. The local funding was the maximum allowable under AS 14.17.410. Then on June 14, 2004, the Assembly enacted Ordinance 2004-19 appropriating funds for fiscal year 2004-2005.

Subsequent to passage of Resolution 2004-047, the Alaska Legislature approved HB 233 changing the base student allocation from $4,169 to $4,576, resulting in an increase in State funding of $3,414,024. In May 2004, the school district adopted a revised budget of $97,956,113, which included the changes in state revenue of $3,414,024 and other reductions of $514,279.

When the budget for FY05 was submitted, funding provided to the School District was based upon projected average daily membership (ADM) of 9,230. Actual ADM for the year is 9527.25, an increase of 297.25. This increased enrollment generated additional State revenue of $1,407,301 and a potential increase to local effort in the amount of $322,551. Other changes to their budget included a net reduction in expenditures for special revenue funds in the amount of $219,692.

The proposed ordinance would increase the borough's local contribution from $32,635,743 to $32,958,294, and would increase the school district overall budget to $99,466,273.