Budget Outlook for 2012-2013

APS is taking a strategic look at the 2012-2013 school year budget, anticipating cuts of nearly 2% -- less than in recent years but still challenging.

February 1, 2012

APS is anticipating a budget shortfall of more than $10 million for the 2012-2013 school year primarily due to increasing costs and declining enrollment.

Word from the Legislative session is that the state will slightly increase funding for public education, perhaps by 1.5 percent. That would be the first increase in state funding for public education in four years.

However, the increase won't be enough for APS to cover about $8.6 million in anticipated cost increases for such things as utilities, employee benefits, textbooks and pay increases for teachers who complete the requirements to move from one salary level to the next.

In addition, APS may have to contribute an estimated $7 million to the employee retirement fund.

Also, APS enrollment declined slightly -- by about 1,000 students -- this school year, which could result in a $6.6 million loss in state funding (offset by $2.6 million in savings).

The net result would be a $10.6 million budget shortfall for APS, possibly resulting in a budget cut of 1.8%.

If this financial scenario plays out as anticipated, it will be the fourth year in a row that APS has cut its budget for a total of more than $111 million.

APS Chief Financial Officer Don Moya has told the APS Board of Education that the budget process is fluid and numbers will continue to change. The board will be updated on a regular basis.

The 2012-2013 budget will be finalized in late May and submitted to the state Public Education Department in June.