$2.96 million deficit in the district's 2013 budget was the focus of the
superintendent's report at last night's Kodiak Island Borough School Board meeting. About $450,000 of the deficit comes from the loss of one-time
state aid. Funding from the American Recovery and Reinvestment Act in the
amount of $350,000 was eliminated. Increasing health insurance costs and salary
increases account for $665,000 of the deficit. The biggest item in the deficit
is $890,000 that was taken from the general reserve to cover this year's
operating costs. Superintendent Stewart McDonald explains what that deficit
does and does not take into account.
-- (School 1 :45 "What's
definitely known is the governor's budget included no new increases for K-12
education. So, that's our starting point. And salary costs will increase just
based on regular movement within the salary schedule, alone. This does not
calculate any other salary increases, What's unknown is the outcome of any
collective bargaining that will take place this years and what's also not known
is the level of state funding from the state legislature and the borough
assembly. We don't know what they will approve. So those are going to be the
variables as we move through this budget season and the numbers that you have
just seen are subject to change based on
those assumptions and what we know and what we don't know."
added that the projected budget is based on many assumptions, some of which
-- (School 2 1:00 "The
assumptions that we had to make on developing this preliminary budget is that
the base student allocations will not change from $5,680, that we can tell.
KIBSD enrollment will essentially, statistically remain flat for the next three
years. You'll see a projection in our
budget book where we're projecting down seven students and then maybe up 20
students and it will kind of bounce up and down for the next three years based
on our cohort survival rate formula. A two percent increase in local support
from the Kodiak Island Borough. Now, this is
solely based on preliminary conversations that we've had with the borough
manager with our board member Peggy Rauwolf and legislative chair Rep. Alan
Dick where it was believed that we may be able to see at least a two percent
increase and so that's why that was built in. People transportation funding
will not increase from the state. So those are the assumptions that we're
operating from that built this budget."
increase more than doubles the cost of transportation for the district. KIBSD
Chief Financial Officer Luke Fulp explains why transportation is expected to
cost a half-million dollars in fiscal year 2013.
-- (School 3 :22 "We
went out to bid for people transportation services last year and we basically
had no competition with that bid and we also had a fleet of vehicles that
needed updating. So, the amortization of those equipment costs and personnel
increases have driven the costs of people transportation services up."
will be discussed in more detail this Saturday from 9 a.m. until noon in the
Borough Assembly chambers.