1. Quarterly Update to Kenai Peninsula Borough Assembly December 4, 2012 Joe Arness, Board President Steve Atwater, Superintendent

2. Tonight’s Presentation Four Positives Ongoing Challenge An early look at our FY14 budget

3. Positive 1- Enrollment

4. Number of kindergarten students is the same as the number of seniors

5. Positive II- Student Performance (Percent of students proficient on SBA)

6. KPBSD, Highest Performing Large District in Alaska

7. Striving to be World Class, Comparing KPBSD Students with Montgomery County, MD on College Ready Indicators Striving to be World Class, Comparing KPBSD Students with Montgomery County, MD on College Ready Indicators 7 Indicators of college and career readiness KPBSD % of students Montgomery % of students Advanced in reading in K, 1 st and 2 nd grade 37, 48, 2476, 87, 44 Advanced in reading in elementary and middle school 4550 Advanced in math in 5 th grade47.349.1 Taking Algebra I in 8 th grade2362.8 Taking Algebra II by 11 th grade44.1159.8 3 or higher on AP test4950.3 1650 on SAT or 24 on ACT34.450.4

8. Positive III- Instruction Supporting and Improving our students learning ◦ Teacher evaluation system (model for state ) ◦ Curriculum Development (include quarterly common assessments) ◦ Response to Intervention (extra layer of support for struggling learners) ◦ Professional Development (more focused, better sense of impact) ◦ 40 new CTE courses in last two years, Type M teachers

9. Positive IV Percent of Students Qualifying for Free or Reduced Lunch (Dec. 2012 ) Note: this is for students enrolled at schools with a lunch program

10. Challenge: KPBSD’s Finances- tension to maintain current level of service District is using fund balance -we are on an unsustainable financial path Recent gradual enrollment loss did not equate to a similar loss of personnel Base Student Allocation is what we use for budgeting- has not increased in three years. State is funding education one year at a time Cost of health care is increasing at an alarming rate-$21.2 million in claims for FY12

11. Health Care – an ever increasing cost Fiscal YearTotal Health Care Claims 10$18,230,857 11$17,577,277 12$21,247,486 13 (four months-through October)$6,721,121

12. KPBSD Health Care Facts (12-3-12) Enrolled in KPBSD’s Health Care Plan Employees 1230 Dependents Spouse 894 Children 1520 TOTAL 3644 Cost of Health Care for Employees and District GroupPer monthPer Year KPBSD Employee$340$ 4,080 KPBSD (per employee)$1,455$ 13,380 Total$ 17,460

13. Looking Ahead- Budgeting for FY14 As always our level of revenue is unknown- initial FY14 budget will include ◦ same level of state funding minus one-time money ◦ same level of borough funding ($43,000,000) ◦ current offer to bargaining units Expect no increase to the Base Student Allocation in the Governor’s budget (released 12/15)

14. Once we know the impact of our new negotiated agreements, we can project a deficit for FY14 Board will then set a maximum amount of fund balance usage District will then request an amount of local funding ◦ FY13 local contribution = $43,000,000 ◦ FY14 maximum local contribution = $45,177,471 Request for FY14 Local Contribution

15. Budget Meetings Introduction of budget to school board January14 Budget Meetings Tuesday, February 19 th – Seward High School Library, 5:30 p.m. Wednesday, February 20 th – Skyview Library, 5:30 p.m. Tuesday, February 26 th – Homer High School Library, 5:30 p.m.

16. Damien Redder Devin Emery 2 Students from Kenai Middle making a difference

17. QUESTIONS OR COMMENTS