Review Agenda Item
Meeting Date: 9/17/2020 - 5:00 PM
Category: Discussion Topics
Type: Info
Subject: FY 2021 - 2026 Fiscal Forecast--30 mins.
ACPS 2025 Strategic Plan Goal:
Goal 4: Strategic Resource Allocation
ACPS will strategically provide differentiated resources and supports to schools and departments.
Policy: DB - Annual Budget
Funding Source or Fiscal Impact (where applicable)
File Attachment:
200917_Preliminary Fiscal_Forecast_V1.pdf
Agenda Item Summary: The following document will be discussed during the FY 2022 Budget Work Session on September 17, 2020:

Five-Year Fiscal Forecast: The FY 2021 – FY 2026 Operating Fund Fiscal Forecast reflects the financial challenges that the Division will face in the coming years. Over the previous decade, student enrollment and expenditures have increased at a far quicker pace than the corresponding revenue has grown. ACPS Staff analysis shows that this trend will continue into the future, requiring a combination of revenue enhancements and expenditure reductions to balance sizable projected budget gaps.

For FY 2022, the projected budget deficit is $11.8 million. Each year, as expenditures outpace revenues, the estimated budget gap will continue to expand. By FY 2026, the annual funding deficit projection grows to $64.9 million.

This fiscal forecast begins with the FY 2021 Final Operating Fund Budget which was balanced with the use of $4.8 million in fund balance. In each fiscal year, beginning with FY 2022, adjustments were made to reflect the anticipated revenue and expenditure assumptions. These assumptions (based on historical data and analysis of the operating impacts of the Capital Improvement Program) will be discussed in the work session.
Background: Each September, the School Board begins budget development for the next fiscal year. This budget work session commences public work on the FY 2021-2026 fiscal forecast

Five-Year Fiscal Forecast: In order to facilitate long-term planning and budgeting efforts, ACPS Staff provides the School Board with periodic updates on the long-term fiscal forecast of the Operating Fund.
Recommendation: The Superintendent recommends that the School Board review the Five-Year Fiscal Forecast in preparation for the work session.
Recommended By:
Signed By:
Robert Easley - Director, Budget & Fiscal Compliance
Signed By:
Dominic Turner - Chief Financial Officer
Signed By:
Dr. Gregory C. Hutchings, Jr. - Superintendent