ANCHORAGE SCHOOL DISTRICT
ANCHORAGE, ALASKA

SUMMARY

Our assumptions in preparing the FY 2004-2005 Preliminary Financial Plan are based on, but not limited to, the following criteria:

• Balanced budget for presentation to the Anchorage Assembly—Expenditures equal Revenues
• Local Property Taxes—Full amount available under the property tax limitation
• Use of Fund Balance as a revenue source—the undesignated fund balance as of June 30, 2003 was $26.665 million or 7 percent of the $376.8 million. Using $4.5 million will bring the undesignated fund balance to $22.165 or 5.9 percent of $376.8 million
• State Public School Funding – no formula change and no increase to per pupil allocation of $4,169
• Quality Schools Grant – no increase to per pupil amount of $16
• State Pupil Transportation Reimbursement – revised formula approved by the Governor and Legislature during the last legislative session
• Potential adoption or expansion of programs must be funded within existing resources
• Increased family cap from $225 to $300 on Middle/High School Activity Fees
• Increased user fees

The discussions in this memorandum related to program and expenditure reductions/eliminations, use of fund balance as a revenue source, and various user fee increases only relate to the projected fiscal gap for FY 2004-2005. It is estimated that unless the District receives substantial funding level increases, in addition to those related to enrollment changes, from the State and federal governments, the District will face another large fiscal gap in the range of $20 to $22 million in FY 2005-2006. An example of one potential expenditure increase for FY 2005-2006 is an estimated employer contribution rate increase of 5 percent for the Public Employees Retirement System and 4 percent for the Teachers Retirement System. The State estimates the impact to the Anchorage School District will be an increase in retirement expenditures of over $11 million.

CC/JS/MSL

PERTINENT FACTS

THE BUDGETING PROCESS

BUDGET DEVELOPMENT

STUDENT ENROLLMENT PROJECTIONS

GENERAL FUND

• Revenues
• Expenditures

OTHER FUNDS

FISCAL YEAR BUDGET COMPARISON

STUDENT ENROLLMENT PROJECTIONS

SUMMARY