Good news in bad times is hard to come by, but good planning by the USD 428 school board will greatly reduce the impact of tough economic times on local school patrons. The local mill levy will remain nearly constant from last year, according to the proposed 2009-2010 school-year budget.
“It’s been a long-standing goal of the school board to leave the mill levy flat with no big surprises for taxpayers from year to year,” said Dan Brungardt, USD 428 director of business. “In good years, money is placed in reserves; in bad years, the savings is available for use.”
Because of funding cuts from the state, the proposed budget will require some reserves to be used, along with reductions in expenditures. Even after receiving approximately $2 million in federal American Recovery and Reinvestment Act (stimulus) money, the school district will still realize about $1 million in reduced funding.
“No cut is ever painless,” Brungardt said, but $655,000 was trimmed from the budget through attrition of teachers and staff members.
No layoffs were required; however, some positions that were voluntarily vacated will not be filled. The rest of the budget deficit will be made up with reserve funds, Brungardt said.
The levy for USD 428 has only varied by 4 mills during the past decade and has actually been at its lowest during the last two years.
Brungardt explained that the district’s mill levy is assessed for three different funds – the general fund, the supplemental general fund and the bond-and-interest fund. Money raised through local property taxes is matched by the state at varying rates.
For every local dollar in the general fund, the state matches $7. For every local dollar raised for the supplemental general fund, the state provides $1.20. And for every local dollar that funds the bond-and-interest account, the state kicks in 80 cents.
This year’s budget is based on a pupil rate of $4,218, which is $182 less than last year. The total weighted full-time equivalency (FTE) won’t be known until the official student-count day on Sept. 21.
Although the budget is only a work in progress at this point, it does meet important goals set by school board members, Brungardt said.
First of all, it keeps the mill levy flat. By planning for the future, the school board is able to build reserves, make capital improvements when possible and make sure there are no unexpected issues or budget shortfalls that will greatly increase the mill levy.
Secondly, “it demonstrates good fiscal stewardship that avoids deficit spending and the need for drastic cuts that undermine education,” Brungardt said.
And thirdly, it complies with state and federal laws.
“Compliance ensures that the budget meets state and federal standards and that state and federal funds are directed to legislated accounts and programs,” he explained.
For comparative purposes, a look at 20 school districts of similar size during 2008 finds USD 428 as having the fourth-lowest mill levy in the state, behind Liberal at 40.01 mills, Arkansas City at 42.77 mills and Hutchinson at 43.2 mills. At the high end is Bonner Springs with 63.9 mills and Gardner Edgerton with 76.5 mills.
The school board will continue working on the budget until it is approved for publishing at its July 24 noon meeting. The budget hearing is set for 5 p.m. Aug. 14 at the District Education Center. |
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