ANCHORAGE SCHOOL DISTRICT
ANCHORAGE, ALASKA

BUDGET DEVELOPMENT

The budget development process for the District is an ongoing process that encompasses over six months of gathering and analyzing information. The budget continues to realign the District’s priorities, as budgeting is a progressive process. The balanced budget concept, Alaska Public School Funding, and the local property tax limitation necessitate early predictions of both revenues and expenditures. Throughout the process, assumptions, enrollment, revenues, and expenditures are constantly being reviewed and assessed in order to provide the most current information. Federal, State or local mandates may necessitate the District to incorporate additional responsibilities and/or initiate new programs within the District. Various demographic and economic factors are evaluated for their impact on the budget. This is especially true this year as a result of the federal No Child Left Behind (NCLB) and Individuals with Disabilities Education Act (IDEA), and the State mandated High School Graduation Qualifying Exam (HSGQE).

Departments and schools review their programs and responsibilities; assess what is being done during the current fiscal year and what progress is being made; continue updating plans for next year and future years; and then prepare budget requests based on their program requirements and how they support the Goals and Mission of “educating all students for success in life.”

The District continues with its efforts to seek input from the community, employees and students in the development of its preliminary budget recommendation. Input relative to economies and efficiencies in delivery of programs and services as well as additions and reductions in programs and services are sought.

This year the budget development process involved public participation through the formation of Budget Review Teams. Each team reviewed one of four broad areas of the budget—General Administration, Instruction, Instructional Support and Support Services. The four teams were each composed of one community facilitator and approximately forty volunteers representing various advisory committees, business and labor organizations, community members, parents, students and District employees. Each team was responsible for identifying reductions or revenue enhancements equal to 7 percent, economies and more effective program alternatives, duplication of efforts/services, and reviewing all funding sources. The teams presented their recommendations at a public meeting on October 30. In addition to the teams, opportunities for budgetary input are accessible through the District Web site and suggestion forms available from schools and at Assembly and School Board hearings. Input was also solicited from the Minority Education Concerns Committee (MECC), various advisory committees and the Anchorage Council of PTAs. All District employees were sent staff comment/question/suggestion forms asking for their suggestions. Each department supervisor was asked to identify 7 percent reductions from their departments and/or revenue enhancements related to their area. All of the recommendations from these sources were reviewed and considered as the Administration developed the preliminary budget being presented. Every program and department was thoroughly scrutinized and many items were eliminated and/or reduced. Programs were reviewed from their base and services reorganized and eliminated to help with closing the fiscal gap. The need to focus on providing core educational services was a primary concern when reviewing and making recommendations in both the instructional and support areas.

On November 3, 2003, a School Board FY 2004-2005 financial planning work session was held. A pro forma revenue and expenditure budget was presented based on the current information known. At that time the Administration projected that the District faced a $26.2 million fiscal gap for FY 2004-2005. Assumptions used for projection purposes were reviewed with the School Board. The Administration gathered suggestions and changes that the School Board members wanted the Administration to further investigate including any of the suggestions submitted by the staff and community members. At that work session the School Board provided guidance to the Administration to include $4.5 million of fund balance as a revenue source to reduce the fiscal gap and to avoid some reductions in various District activities when bringing the FY 2004-2005 Preliminary Financial Plan forward in January 2004.

On November 10, 2003, the School Board authorized the Superintendent to prepare the Anchorage School District’s FY 2004-2005 Preliminary Financial Plan in accordance with the financial projections set forth at that time. Authority to adjust the budget expenditure ceiling in accordance with any negotiated contract adjustments and other associated cost increases, School Board requests, and Administration, community, staff and students’ budget review recommendations given to the Superintendent. In addition, flexibility was given to allow for adjustments based on updated demographics and/or economic information, as well as staffing based on review of student enrollment projections. The total of all department budgets plus any new facilities or change in program requirements were compared to anticipated revenues. Including the use of $4.5 million of fund balance as a revenue source, it was projected at that time that expenditures would exceed projected revenues by approximately $19.4 million.

During this past two months as the Administration proceeded forward in preparing a FY 2004-2005 Preliminary Financial Plan in which expenditures would equal revenues, the District’s mission of educating all students for success in life was always at the forefront. It was also recognized that this could not be accomplished without support and maintenance departments. Review and reassessment of assumptions and parameters were made again. Updated and new information was incorporated. Assessment of workload and reorganizations within departments to improve efficiencies were made. Community, staff and student suggestions were considered and implemented where appropriate. After a great deal of review, consideration and discussion, the Superintendent is presenting to the School Board a balanced FY 2004-2005 Preliminary Financial Plan totaling $499,890,875. Expenditures have been brought into balance with revenues by making major reductions and increasing fees. Some reductions were made as a result of efficiencies through better resource management, but eliminating the large fiscal gap was not accomplished without directly impacting instructional programs. As the Administration presents the budget to the School Board on January 13 and 15, program reductions and realignments will be identified.

Student enrollments, revenues, and expenditures are projected on a preliminary basis. The following sections on Student Enrollment Projections, General Fund Revenues and Expenditures, and Other Funds summarize the principal financial planning factors involved in preparing the FY 2004-2005 projections. Major revenue and expenditure considerations and budget development criteria are also included.

PERTINENT FACTS

THE BUDGETING PROCESS

BUDGET DEVELOPMENT

STUDENT ENROLLMENT PROJECTIONS

GENERAL FUND

• Revenues
• Expenditures

OTHER FUNDS

FISCAL YEAR BUDGET COMPARISON

STUDENT ENROLLMENT PROJECTIONS

SUMMARY