ANCHORAGE SCHOOL DISTRICT
ANCHORAGE, ALASKA

Expenditures

Students and program needs and a commitment to use the funds economically primarily drive expenditure projections. Recommendations submitted from the Budget Review Teams and the suggestions received from interested community members, staff, students, and the administration, were considered and incorporated into the budget where appropriate always keeping in mind the District’s core focus of providing educational services. Both revenue enhancements and expenditure reductions have been incorporated to bring the budget into balance.

Salaries and Benefits— Employee salaries, wages, and benefits are projected to be approximately 86.4 percent of the operating cost of the District. The projections include consideration for contract negotiations for the Anchorage Principals Association (APA), Public Employees Local 71 Custodians, Totem Association of Education Support Personnel Incorporated, APEA/AFT (AFL-CIO), a contract re-opener for Anchorage Education Association (AEA), and compensation consideration for Exempt personnel. Depending upon the settlement parameters defined by the School Board for collective bargaining for these contracts, the total revenue needed to support the programmatic assumptions discussed herein may be revised. Compensation provisions for completed contracts have been included in the projections. Funding for mandatory retirement increases for certificated retirement (12 percent to 16 percent) and classified retirement (9.25 percent to 14.25 percent), and payroll tax adjustments known at this time are also included in the expenditure projections.

Average Teacher Salary— Further review and analysis of the current teacher salaries over the last two months, resulted in the average teacher salary used in the previous projections to increase slightly. Contributing factors that determined the average teacher salary used included the salary schedule increase, projections of current staff step increases, historical information of educational attainment, employee layoffs, projected turnover and vacancies at any given time.

Staffing— Staffing requirements have been adjusted based on the official student projections set forth for September 30, 2004. Official projections are based on actual enrollment throughout the month of September.

Certificated Teaching Positions— In order to bring expenditures in balance with projected revenues, it was necessary to increase class size by 1.5 PTR (pupil to classroom teacher staff ratios) in all grade levels (reduction of 102.5 FTE teachers). Adjustments have also been included for staffing based on decreased enrollment projections (reduction of 17 FTE teachers) and for staff requirements based on rural-urban transitioning and immigration from other countries that provides the District with a wealth of opportunities with 93 languages spoken in the Anchorage schools.

Indirect Cost— In addition to charging eligible grants, the Administration plans to continue the practice for charging the Food Service Fund the State approved indirect cost rate. This more accurately reflects the cost of services provided the Food Service Fund by various departments budgeted in the General Fund. The indirect cost rate is anticipated to increase from 4.08 percent in FY 2003-2004 to 4.38 percent (subject to approval by the State) in FY 2004-2005.

Contracted Services— Where appropriate, inflationary adjustments to contracts were allowed. A very close review of actual contracted services determined if inflationary increases are warranted. If other known rate increases were warranted or increased mandated requirements known, they were included in the budget. Utilities are budgeted based on analysis of usage and are adjusted according to projected rate increases and/or decreases as announced by the utility agencies. With rate adjustments and review of actual expenditures, 4 percent to 28 percent rate increases for the utilities are projected.

Pupil Transportation— Contracted pupil transportation routes for FY 2004-2005 include an estimated increase for COLA.

Major Maintenance— The Administration recommends reducing the funding level for major maintenance projects by $186,900 (7% reduction) from $2.67 million to $2.49 million. As the District’s more than 92 school facilities continue to age, periodic maintenance must take place on a regular basis to keep the buildings in good repair for optimum safety and efficiency. Some of the routine maintenance can be postponed for one year but should not be further delayed.

Supplies— In general, the supply budgets have been reduced. Most departments reduced their supply budgets by a minimum of 10 percent. Some departments, however, may show an increase in supplies based on departmental need to service the total District program requirements (i.e., fuel requirement to run District vehicles). The current projections also include a 10 percent reduction to the school supply and equipment per pupil allocation compared to the current year. The District, Municipality of Anchorage and University of Anchorage are examining the possibility of savings funds by jointly purchasing computers and other bulk items. For the first year of opening, South Anchorage was given a triple allocation to support start-up costs that are not eligible to be charged to the construction funds. Also included is the continuation of emergency shelter supplies for schools serving as shelters in the event of a major emergency.

Equipment— Replacement equipment purchases between $5,000 and $50,000 will be purchased from the Equipment Replacement Fund. The FY 2004-2005 Preliminary Financial Plan includes only a small amount of funds for expendable equipment other than the amount included in the student supply/equipment allocation. It is anticipated that the current year’s budget has sufficient upper limit spending authority to allow for some additional one-time equipment purchases to be made later this year.

New School and Additions— Included in our expenditure projections are costs associated with the opening of South Anchorage High School and completion of the addition/renovation to Ptarmigan Elementary and Wendler Middle Schools.

Charter Schools— One application for a charter school, Eagle Academy, has been received by the Administration for consideration for FY 2004-2005 and is based on an anticipated enrollment of 175 students. This charter school application was brought before the School Board on January 12, 2004, for consideration. The Administration did not recommend approval at this time. If approved by the School Board, we will make adjustments accordingly.

Major Expenditure Reductions— The major program reductions/eliminations and the positions that were required to be eliminated in the FY 2004-2005 budget in order to bring expenditures in balance with projected revenues are as follows:

• Increase class size by 1.5 students in all grade levels (102.5 FTE)
• Eliminate extra planning and seventh period at middle schools (54 FTE)
• Reduce Kindergarten Teacher Assistants by 50 percent (35.5 FTE)
• Eliminate 3.7 FTE Districtwide Music Teachers
• Eliminate 8.3 FTE Library/Media Assistants at the middle schools and Polaris
• Eliminate 2.5 FTE Library/Media Assistants at elementary schools
• Eliminate 2 middle level Assistant Principals (Wendler and Central Middle Schools)
• Eliminate 2 elementary level Assistant Principals
• Eliminate 1 Assistant Principal at King Career Center
• Reduce .5 Safety/Security Home School Coordinator at King Career Center
• Reduce .5 Nurse each at SAVE and Benny Benson
• Eliminate 1 Slingerland Secretary
• Eliminate the Community Education Program (13 Community Education Coordinators)
• Eliminate 1 Administrative Assistant in Community Resources
• Eliminate 1 Administrative Assistant in Community Services
• Eliminate 1 Senior Budget Clerk in Budget Department
• Eliminate 1 Administrative Assistant in Purchasing Department
• Eliminate 5 permanent substitute Custodians
• Eliminate 1 Custodial Training Supervisor
• Eliminate 1 Warehouse Courier position
• Eliminate 1 Maintenance Supervisor
• Eliminate 8 permanent substitute Bus Drivers
• Reduce departmental supply accounts by a minimum of 10 percent and the per pupil supply/equipment allocation by 10 percent
• Eliminate a majority of the funding for meals and food
• Eliminate swimming as a PE instructional class ($186,840)
• Eliminate C team participation in all high schools ($175,000)
• Reduce high school activity trips by $100,000
• Reduce high school pupil activity expenses by $29,000
• Reduce funding for Paideia program by $30,000
• Reduce funding for Schools of Choice by $25,000
• Reduce funding for Graduation Support Services by $54,000
• Reduce middle level summer school by 50 percent
• Reduce $258,500 of funding for the MOST (Middle School Older Learning) program and discretionary school grants at the middle schools
• Reduce middle level reading program training by $85,000
• Reduce activity field trip funding by $24,000 at middle schools
• Reduce discretionary school grants to elementary schools by $815,000
• Reduce elementary level summer school by 50 percent
• Cut 2 addenda for elementary level chorus and interscholastic activities (school discretion)
• Reduce funding for elementary health curriculum, the Great Body Shop, by 50 percent
• Reduce funding for elementary level reading initiative by $362,200
• Reduce funding for major maintenance projects by $186,900
• Reduce funding for in-lieu of transportation payments by $25,000

PERTINENT FACTS

THE BUDGETING PROCESS

BUDGET DEVELOPMENT

STUDENT ENROLLMENT PROJECTIONS

GENERAL FUND

• Revenues
• Expenditures

OTHER FUNDS

FISCAL YEAR BUDGET COMPARISON

STUDENT ENROLLMENT PROJECTIONS

SUMMARY