MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Jeffrey E. Sinz, Finance Director

DATE: April 24, 2002

SUBJECT: Resolution 2002-_____, Revised Education Budget

On April 17, 2001, the assembly adopted resolution 2001-044 which approved the total FY2002 school district budget of $88,420,316 and determined the amount of local funding to be provided by the borough to support that budget to be $30,954,658. During FY2002, the school district has received additional funding for programs above that anticipated when Resolution 2001-044 was adopted. Receipt of these additional revenues allows the district and borough assembly to approve a higher total budget than that originally approved through Resolution 2001-044. In addition, differences in the actual student enrollment compared to that projected in the school district's FY2002 budget have resulted in changes to the allowable total school district budget and the amount of allowable local funding. The district forwarded a letter to the borough Assembly dated April 9, 2002 requesting assembly approval of an amended FY2002 budget and providing background information on the basis for the change. A copy of that letter is attached for your information. Under Alaska Statute 14.14.060 the assembly must approve the total amount of the school budget each year and the sum to be made available from local sources. It is therefore necessary for the borough assembly to approve any increase in the total school district budget above that previously approved in Resolution 2001-044. The school board unanimously approved the proposed budget revision at its April 1, 2002, meeting.