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USD 235 patrons to see FY17 mill levy increase
A generous grant received for the past 12 years has run out for USD 235.
That is just one factor in an increase of the school district's mill levy by 2.9 mills, Superintendent Jan Hedges told the Tribune.
The William L. Abernathy 2003 Charitable Trust has provided an average of $73,380 a year to the district, with a total amount of $939,950 through the years, Hedges said.
"I think the community should thank the Abernathy Trust," Hedges said. "It has protected us from a tax increase for 13 years. We didn't have to tax people as high when getting this revenue.... It helped pay for teachers aides, materials, supplies for at-risk students."
In addition to no longer receiving the grant, cash balances have been included in the proposed budget now, as well as the district has not had levied taxes in capital outlay in the past and that is included in the proposed 2016-17 budget.
Also adding to the mill levy increase is a state mandated percentage of state aid be placed in an Extraordinary Need fund for school districts, Hedges said.
"That adjusts our state aid down," Hedges said.
The Extraordinary Need money is for school districts that have extraordinary circumstances occur, Fred Meier of the Southeast Kansas Education Service Center, said. "Such as Southwest Kansas, some districts have lost as much as 50 percent of their valuation. Some districts have big enrollment growth, where you have to have more staff. That's what that is designed for. Your cost there is $12,928, that's .04 percent of your general state aid. It was new last year."
The budget was approached differently this year, Hedges told the board, Monday night.
The cash carryover is one difference.
"The cash carryover we have actually built into the budget," Hedges said. "This is one of the differences in philosophy," from years past.
In previous years there was money that was carried over, but not budgeted, she said.
Hedges had enlisted Meier's help with the budget.
"Mr. Meier has helped me understand that if we had to spend that money, we would've had to go back and republish the budget. I know that I have to cash carryover. I can't spend this down to zero. But I also don't want to have to republish the budget every time we have an unexpected expense come up."
"By allowing the cash carryover to be a part of the budget limit, that's what you are doing," Meier said. "It allows you to go to that limit. We put that money in that position to where she knows where it is and she knows that is not to be spent."
General Fund
One item in the general operating budget is not different, Hedges said.
State aid to all school districts is always 20 mills, she said.
"There is no variation," Hedges said. "That's the way it is for everyone (school districts) in the state."
Other funds
Another difference in the budget philosophy is the retirement system.
"Now KPERS is a flow-through," Hedges said. "It comes in to our general fund, it looks like we've got a lot of money. But immediately it goes out...back to KPERS. That's the jump in the number there."
The Local Option Budget has some fluctuation in the tax rate, Hedges said.
"Last year, we had to republish the budget in September because of bond and interest and the LOB," she said. "We had a revenue that was in the wrong place. That elevated the bond and interest rate and decreased the LOB rate. Now we are having to adjust that. That's a little bit confusing."
Capital outlay is used to maintain the districts assets, such as buildings and equipment.
USD 235 has had no mill levy for capital outlay the last few years, she said.
"You are authorized to go up to eight mills (in capital outlay)," Hedges said.
The district is asking for an increase in one mill for this line item in its proposed budget.
Expenditures in special education are increasing this year, Hedges said, with the district being asked to increase a minimum of 3 to 5 percent in payments to Interlocal 630, which provides special education services to the school district.
"We made an adjustment to the bond and interest," Hedges said. "By working with our numbers...we can cover that with our cash carryover that we have now and reduce that rate slightly."
Total district expenditures warrant a 2.9 mill increase, Hedges said.
"Our financial management system needed to be replaced," Hedges said. "To make the transition was challenging."
Meier has been assisting Hedges and Board Clerk Sherri Hartmen and Deputy Clerk Charlene Bolinger in the transition to Manage Accounts Payroll Personnel System or MAPPS, she said.