“I realize I sometimes speak a different language,” Douglas says of the need to provide definitions for words of the budget world. “I have found that when I talk with people, after I get through with a presentation they’re asking for further clarification. So, I tried to step back and understand that it’s second nature to me, but it’s new stuff to a lot of people.”
Revenue is like your gross wages. Expenditures are like your household expenses. The fund balance is sort of like a savings account.
One by one, Douglas breaks down a complex set of phrases and concepts into smaller pieces, and then rebuilds them with some simple charts and columns of figures, using the school district’s recommended budget for FY06 as a basis.
When it comes to challenges, Douglas points out employees’ step increases, which are based on longevity and currently estimated at $1 million in the proposed budget. Then there are rising utility costs, which she characterizes as “a big ticket item.” Estimates she recently developed for a legislative researcher for FY06 indicate a potential 15 percent jump in electricity and a 30 percent increase for fuel.
“For two schools in the Homer area between June and September, one increased 12 percent and one 17 percent,” Douglas says. “But it wasn’t just those two schools. We’re encountering that everywhere. We have the same scenario in the whole district.”
The impact of rising fuel costs reaches beyond heating school buildings, according to Alan Fields, principal of Kenai Central High School.
“A couple of years ago the school district cut out funding for travel for activities, so that money comes from participation fees charged to parents and students and comes from booster clubs that fund-raise to help pay for buses,” Fields says. “So, if you’re talking added costs for fuel for buses, then that cost is pushed on to those groups.”
“It goes over into all sorts of other areas,” Fields adds, referring to shipping things to and from the Lower 48. “It’s really kind of a scary one.”
Benny Abraham, principal of Paul Banks Elementary School in Homer, agrees.
“The energy thing has everyone concerned in every aspect,” he says. “That’s from actual heating costs to supplies and materials. Energy effects everything we do.”
Insurance costs have skyrocketed since the terrorist attacks of Sept. 11, 2001, and Douglas anticipates a similar impact resulting from Hurricane Katrina. Other challenges include the annual increase in the retirement systems and a limited fund balance.
“We’re required to reserve part of it for certain purposes,” Douglas says of the fund balance. “The amount truly left for our needs — in this case, shortfall in revenue and increasing utility costs are the immediate needs — there’s only about $2 million. I don’t mean to be flippant because $2 million is a lot of money, but in a budget our size, that’s not particularly large.”
Fields’ biggest budget-related concern is being able to have enough quality staff for the programs offered to students.
“When there’s not enough money to go around, that’s where it’s going to come from,” he says. “I guess I’d rather take the cut anywhere else rather than a quality person. And then it comes down to having to decide what elective to let go of. Those just aren’t the kind of choices you want to be making.”
A fair and equitable alignment of the area cost differential — costs of running schools that acknowledges the differences of the state’s rural and urban areas — across the state is at the top of Abraham’s priority list.
“No matter what we try to do to curb costs or save energy, that’s going to have to be evaluated to where we can hopefully do a better job of funding education on the peninsula,” Abraham says. “And it needs to change in a way that doesn’t penalize other districts in the process.”
Attendance at the budget orientation meetings has been low so far, but Douglas believes it will increase as the process continues. And more public input in developing the budget is the district’s goal.
“We feel that if the public is more informed about the circumstances facing the district, they are better able to communicate with legislators,” Douglas says of wanting legislators to understand the challenges facing the Kenai Peninsula Borough School District.
“I agree with her completely,” Fields says. “Legislators respond more readily when they hear from parents and community members.
Abraham says the public’s understanding of the budget process will be beneficial in framing priorities.
“It helps everyone to understand the position the district is in with money and what things we can do better ot utilize the funds we have available to us.”
Following is a schedule of future community meetings the district has scheduled to address development of the budget for Fiscal Year 07:
Oct. 17, budget hearing with full KPBSD school board, Borough Assembly Chambers, Soldotna, 6 p.m.
Oct. 27, budget orientation meeting, Seward High School library, 7 p.m.
Nov. 7, budget hearing with full KPBSD school board, Homer High School, 6 p.m.
Jan. 23, public budget forum, Seward High School library, 7 p.m.
Jan. 25, public budget forum, Skyview High School library, 7 p.m.
Jan. 30, public budget forum, Homer High School library, 7 p.m.
A public budget-comment survey will be distributed by the district during November. A budget comment form is currently available on the district’s Web site at www.kpbsd.k12.ak.us/default.htm.
McKibben Jackinsky can be reached at mckibben.jackinsky@homernews.com.
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