2021-22 Approved Budget Highlights

REVENUE OUTLOOK

District Operating Fund funding sources are comprised of local, state, and federal revenues.

Local Revenue

Estimated local revenue from all sources in 2021-22 totals $50,602,400. This amount includes an increase in the local contribution of $400,000 as compared to the prior year. The local contribution from the borough has decreased 10.7% since 2015-16.

State Revenue

State revenue has been reduced significantly due to student enrollment declines related to the effects of the global pandemic. Estimated state revenue in the 2021-22 Approved Budget totals $121,288,199, a decrease of $10,357,247 or 7.9%. As of the publication of this budget, the Alaska Legislature had not yet finalized the FY22 state budget, however it is anticipated that the base student allocation (BSA) will remain static at $5,930. The District is projecting a decrease of approximately 1,400 students compared to the 2019-20 official student count. It is hoped that, as the educational process returns to normal, that many of the students lost due to the global pandemic will return in the fall, which would boost State Foundation funding and greatly benefit the District’s overall bottom line.

Federal Revenue

Estimated federal revenue in the 2021-22 Approved Budget totals $16,921,766, a decrease of $2,268,345. Federal revenues are comprised primarily of Title VIII Federal Impact Aid. Impact Aid revenue is based on the number of federally connected children in the District and a number of funding formula variables. Annual receipts of Impact Aid are highly unpredictable in both amount and timing. The District has used a five-year average of annual receipts to estimate the 2021-22 Impact Aid revenue. It is important to note that the state reduces foundation funding by roughly one-half the value of expected Impact Aid funding. Therefore, only about one-half of the value of Impact Aid funding is a true net funding source to the District.

The District also receives federal funding to partially offset staffing costs of JROTC programs. In 2021-22 the District again anticipates receipts totaling approximately $300,000 to support these programs. These receipts fund approximately 26% of the JROTC program costs.

Other Financing Sources

The use of fund balance as a source of income for the Operating fund has been eliminated in the FY22 Approved Budget. Some reductions were made to account for this, however much of the loss of revenue has been offset with pandemic-related relief funds provided by the federal government (CARES and ARPA). These one-time funds provide the temporary ability to continue to provide many important components of the district’s educational programs. As these funds are exhausted, the district will likely need to make additional reductions. The amount of those reductions will largely depend on how close student enrollment rebounds over the next two years to pre-pandemic levels.