Fairbanks Local School District

Fairbanks Local Schools will conclude the 2025 fiscal year in a stable financial position. While several one-time expenditures - such as the Athletic Field renovations (Permanent Improvement Transfer), a six-year Science of Reading program, the relocation of the Central Office to address space needs at the high school/middle school, and a much-needed home bleacher renovation - have pushed our expenditures above revenues, our overall financial health remains generally sound.

For FY2025, general fund expenses came in at $19.6 million, while revenues came in at $18.2 million. Despite this operating gap, the district ended the fiscal year with a healthy reserve balance of approximately $8.3 million. 

Looking ahead to FY 2026, we are projecting a potential operating deficit; however, we believe this is manageable and not excessive in relation to our current reserve levels. Recent guidance from the state budget process suggested district reserves should not exceed 40% of annual expenditures. Our reserve balance for the end of FY2025 was 42% of expenditures. The district feels an appropriate range is 20-40%, with the district most likely heading toward 30% in the next 3 years.

While Fairbanks has not recently seen a trend of decreasing reserve balances, it is important to note that these balances naturally fluctuate over time due to evolving district needs and changing economic times, as well as state funding changes.

As both student needs and facility requirements shift, our financial plans will continue to adapt accordingly. As always, there remains a degree of uncertainty in forecasting future revenues and expenditures.

While our current financial condition is mostly stable, proposed legislation within the state budget process could impact our fiscal outlook in the years to come.

Property tax continues to be heavily debated this budget cycle, with some changes coming most likely.

General Property tax contributes approximately 50% of district revenues. Changes to property tax can have a significant impact financially on the district.

As always, we remain committed to being fiscally responsible while continuing to meet the needs of our students and district facilities.

Thank you for your continued support of the Fairbanks Local School District.

Accounts Payable, Accounts Receivable, Auditing, Banking, Benefit Administration, Budgeting, Business Management, Contract Management, Asset Management, EMIS, Financial Reporting, Forecasting, Grants Management, Investing, Payroll, Records Management, Student Activities

School funding starts with the State's premise of a shared responsibility between them and the local community. Schools typically have to pass levies to help fund operations and improve buildings. 

General Property Tax includes Residential, Agricultural, and Commercial property located in the district. General Property Tax for operations is levied at approximately 25 mills, with 20 mills being unvoted minimum collected by law, and voted (now "substitute") emergency operating levy of 5.0 mills. Emergency levy brings in $1,900,000 per year for operations. There is also debt millage for the elementary outside of operations at approximately 1.5 mills. School funding starts with the State's premise that funding is a shared responsibility between them and the local community. The State provides some basic aid funding, but then relies on local communities to provide the remaining necessary funds. How much State aid we receive typically is a function of the number of students and property wealth per the number of students in the district. Schools would not be able to provide the services and programs without local support. Below is a current breakdown of Fairbanks district revenues. Property tax allocation would be considered State Assistance.

Income tax is .75% for operations. There is also a separate .25% income tax for permanent improvements only. Permanent Improvements are tangible assets or improvements to facilities/buildings.

Property Tax allocation includes a 12.5% Homestead/Rollback the state pays on behalf of home owners.

• District Safety Coordinator

• District Psych. Services

Since schools are service organizations, approximately 75-80% of the budget goes to personnel staffing (Salaries, Wages, Benefits). We have 151 full and part-time staff members made up of Teachers, Bus drivers, Maintenance and Custodial, Support staff, and Administration.

• Bus repair services

• Copier Leases and Printing

• County Auditor/Treasurer Fees

• Instructional Support Services and Professional Development

• Legal

• Maintenance Repairs and Contract Services

• Special Education Services (Physical Therapy, Occupational Therapy, Psychologist)

• Technology Services

• Tuition to other schools for Special Education, Community, and Charter Schools.

• Utilities, Heat (Natural Gas), Electric, Phone

• Bus parts and supplies

• Cleaning and Maintenance Supplies.

• Diesel fuel for bus transportation

• Instructional Materials and Textbooks

• Technology Supplies

• Buses

• Classroom Furniture

• Major Building Improvements/Upgrades

• Maintenance Equipment

• Technology Equipment

Recent permanent improvements to the district include:

• New flooring and ceiling tile in the Middle School

• New Lockers in the Middle School

• Masonry and joint repair in the Elementary School

• Bleacher repair

• Pavement repair at the schools and bus garage

• Propane bus

• Classroom furniture

• HVAC in the weight room

• Bus Garage roof