Office of Management and Budget / FY26 Budget Planning

Overview

FY26 General Fund Budget Outlook

Structural Deficit (General Fund + Transportation) - $111m

FY25 Operating Budget = $638M Projected FY26 Operating Fund Budget = $651M

Projected Revenues = $543.6M

$94M less than FY25 without one-time supplemental funding

Estimated $27M in fund balance available at 8% minimum per board policy

$47M available at 5%

FY26 Budget Deficit (Projected Revenues vs. Expenditures) without use of Fund Balance = $107M

FY26 Budget Deficit (Projected Revenues vs. Expenditures) WITH use of Fund Balance = $60M

Step 1
School Size Adjuster

The school-size factor table is used to calculate the adjusted Average Daily Membership (ADM) for each school
41,750 -> 44,840

Step 2
District Cost Factor

The district's school size adjusted ADM is multiplied by the district cost factor
44,840 = 44,840

Step 3
Special Needs Factor

The previously adjusted ADM is multiplied by 1.20, providing an additional 20%
44,840 -> 53,808

Step 4
CTE Factor

The previously adjusted ADM is multiplied by 1.015, providing an additional 1.5%
53,808 -> 54,654

Step 5
Intensive Needs Factor

The intensive needs count is multiplied by 13 to determine the final Adjusted ADM
54,654 -> 69,214

Step 6
Correspondence Factor

The district's correspondence count is added in and multiplied by .90
69,214 -> 71,014

General Fund Budget Gap

		Adopted Budget	Pro Forma	FY25 Adopted Budget vs. FY26 Pro Forma
	Line #	FY 2024-25	FY 2025-26	$	%
General Fund Revenue Local Revenue	1	$ 268,130,966	$ 236,492,314	$ (31,638,652)	-11.80%
State Revenue	2	352,649,395	290,069,323	(62,580,072)	-17.75%
Federal Revenue	3	17,039,459	17,075,412	35,953	0.21%
	4	637,819,820	543,637,049	(94,182,771)	-14.77%
General Fund Expenditures Salaries (net of attrition) [1]	5	384,884,056	391,889,245	7,005,189	1.82%
Benefits (net of attrition) [1]	6	160,139,986	164,663,641	4,523,655	2.82%
Contracted Services	7	70,922,222	72,296,513	1,374,291	1.94%
Supplies	8	14,322,552	14,466,661	144,109	1.01%
Capital Outlay	9	2,285,858	2,664,350	378,492	16.56%
Insurance/Other	10	5,265,146	5,079,732	(185,414)	-3.52%
Total General Fund Expenditures	12	637,819,820	651,060,142	13,240,322	2.08%


General Fund Budget Gap	13	$ -	$ (107,423,093)	$ (107,423,093)

Potential Authorized Use of Fund Balance	14		47,000,000	47,000,000

General Fund Budget Gap with Fund Balanc	15	-	$ (60,423,093)	$ (60,423,093)

General Fund FTE Distribution

State Function	Fiscal Year
	2022	2023	2024	2025	2026
100 - Instruction	2,047	1,752	2,035	2,171	2,121
200 - Special Education Instruction	1,046	1,064	1,042	1,011	1,011
220 - Special Education Support Services	225	226	241	193	193
300 - Support Services - Students	324	320	330	348	348
350 - Support Services - Instruction	151	151	161	219	219
400 - School Administration	143	144	142	148	148
450 - School Administration Support Services	149	250	246	248	248
510 - District Administration	27	27	29	28	28
550 - District Administration Support Services	193	201	220	158	158
600 - Operations and Maintenance of Plant	481	482	464	469	469
780 - Community Services	3	3	4	3	3
Total General Fund FTE	4,789	4,621	4,915	4,995	4,945
100 - (Federal Stimulus)	275	497	164	-	-
350 - (Federal Stimulus)	18	29	-	-	-
550 - (Federal Stimulus)	-	2	-	-	-
600 - (Federal Stimulus)	-	2	-	-	-
Total General Fund and Stimulus FTE	5,082	5,146	5,079	4,995	4,945

District Administrative Comparisons

FY25 District Administration Costs as % of Total Operating Expenditures
SCHOOL DISTRICT	% District Admin
BERING STRAIT	3.31%
LOWER KUSKOKWIM	3.38%
KETCHIKAN	5.06%
ANCHORAGE	5.06%
CRAIG	5.07%
VALDEZ	5.09%
SOUTHWEST REGION	5.58%
MAT-SU	5.72%
NENANA	5.97%
KENAI PENINSULA	6.25%
ALASKA GATEWAY	6.26%
KUSPUK	6.31%
GALENA	6.35%
LOWER YUKON	6.39%
NORTH SLOPE	6.99%
JUNEAU	7.07%
FAIRBANKS	7.09%
DELTA GREELY	7.32%
NOME	7.32%
NORTHWEST ARCTIC	7.34%
SITKA	7.55%
PETERSBURG	7.71%
YUKON-KOYUKUK	7.91%

Local vs. State Contributions

FY17

FY26

$ Change

% Change

��ʩֱ��APP Property Values	$ 39,055,816,190	$ 48,188,712,215	$ 9,132,896,025	23.38%
Required Local Contribution	103,497,913	127,700,087	24,202,174	23.38%
Additional Local Contribution	101,785,965	97,607,227	(4,178,738)	-4.11%
Transportation	-	9,060,354	9,060,354	100.00%
Total Local Support	$ 205,283,878	$ 234,367,668	$ 29,083,790	14.17%
State Foundation Revenue	330,595,994	290,069,323	(40,526,671)	-12.26%
State Transportation Revenue [1]	22,619,006	19,119,654	(3,499,352)	-15.47%
State One-time Funds - General	- - -			100.00%
State One-time Funds - Transportation	- - -			100.00%
State Total	$ 353,215,000	$ 309,188,977	$ (44,026,023)	-12.46%
ADM	47,680	41,750	(5,930)	-12.44%

[1] FY17 actual revenue was $20,844,448 - short funded by about 8% from the statutory amount