September 8, 2025 at 6:45 PM - Budget Hearing
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1. Opening Items
Agenda Item Type:
Procedural
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1.A. Call to Order
Agenda Item Type:
Procedural
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2. Budget Hearing
Agenda Item Type:
Information
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2.A. Budget Hearing
Agenda Item Type:
Information
Public Content:
During the budget hearing, the public may ask questions of the board about the proposed 2025-2026 budget. Recommendations and/or changes requested may be considered by the board.
With respect to the budget, a few topics need to rise to the front lines for discussion. The first is the budget was built around the 20.000 mills mandated for the General Fund; 5.000 mills for capital outlay, and the 4.800 mills for Supplemental General Fund (.135 mill increase). Secondly, the district does facilitate the levy for the Recreation Commission. General Fund- The state of Kansas mandates that all school districts adopt 20.000 mills to support the General Fund. Capital Outlay - While our Capital Outlay Fund has historically enjoyed a sizable balance for a school of our size, the recent emphasis of both the Kansas judicial system and the Kansas Legislature has focused more money through the finance formula on districts with low wealth. The 5.000 mills of Capital Outlay Funds have been used to support school improvement projects as well as the Local Option Budget. This has resulted in a reduction of the fund balance to a point that unless revenue is generated to replace funds spent for major projects and expected ongoing expenses such as equipment repair and replacement, the fund will not have sufficient reserves to address future building and equipment needs. In 2006-07, the board approved a dedicated 2.00 mill levy for the purpose of maintaining our plant and equipment. That amount generated $834,000. With the loss of valuation in 2007-08, that levy generated $758,000. In 2006-07, the board also approved a levy of .402 mills that was intended to restore the Capital Outlay funds used for the recent BHS addition over a period of 8.5 years. With the subsequent loss in valuation in 2007-08, 2008-09, and 2009-10, that levy is expected to need 10 years to replace the cost of that addition. As a result, in 2007-08, the board also agreed to levy .241 to offset the decline in valuation. In 2008-09, .342 mills were levied to offset the decline as well. The 4.000 mill levy was continued since the 2009-10 school year until the district had a successful increase of the fund to 5.000 mills to fund the science room renovations and gym renovation. The maximum mill levy for capital outlay is 8 mills. In 2022-2023, the Board of Education voted to pass a continuous and permanent resolution to reduce the mill levy for Capital Outlay from 5.000 to 4.000 mills. In 2023-2024, the Board of Education voted to pass a resolution to increase capital Outlay from 4.000 mills to 5.000 mills for 3 years to support the renovation/addition to the Vo-Ag shop at BHS. If the board wishes to continue to maintain the current level of our facilities and equipment, it is recommended we support the 5.000 mills proposal for this budget year. Capital Outlay Expenditures- The board is aware that the cash reserves we have had in the Capital Outlay Fund have been expended for a variety of capital improvement projects. The actual ending balance on June 30 was $2,769,422.77. While the board might look at the above amount and question the need to levy additional funds given that balance, board members are asked to recognize that the list of capital projects more than exceeds the balance. The first half of the 2025-2026 tax collection will be received in January, and the second half in June of next year. Since we don’t realize the revenue in the fund until midway and at the end of the current year that we need to have at least a year’s worth of revenue in the fund as carryover. For 2025-2026, the levies will be used to address plant, grounds, fleet, and equipment upkeep throughout the district. The district plans to levy 5.000 mills this year. The majority of the funds will go towards the repairs of the physical plant/grounds. We have noticed over the last 9 years that our facilities are aging. We installed field turf on all athletic fields, repaired water lines, replaced several pumps/motors, repaired and replaced numerous HVAC units, completed concrete repairs, flooring projects, etc. to name a few. In 2024-2025 we began the addition and renovation of the Vo-Ag shop. This project will be completed and paid in full at the beginning of the 2025-2026 school year. We are considering future plans for Burlington Elementary School, as well as the replacement of the press boxes and bleachers at the Wildcat Baseball and Softball fields. The district must also continue to repair our technology tools. These include, but are not limited to computers, Newline boards, servers, phone systems, student and fiscal software, etc. To complete larger projects, the district may need to consider increasing the capital outlay mill levy or passing a bond issue in the future. Another part of the 5.000 mills needs to be dedicated to the replacement/purchase of buses, cars, vans, and service equipment (mowers, service truck, etc.). The district purchased a work utility truck in 2017-18. In 2019-20, the district purchased a 10-passenger van, a 14-passenger bus, and two cars. In 2020-2021, the district purchased a 10-passenger van and riding lawn mower. In 2021-2022, the district purchased a riding lawn mower, 3 school buses, a used 7-passenger Chevy Traverse, and a skid steer. In 2022-2023 the district purchased a maintenance director truck, a used route bus, and used a 7-passenger Chevy Traverse. In 2023- 2024 we purchased two 2017 used activity buses. We purchased one used school vehicle with a combination of Capital Outlay Funds and Driver’s Education Funds. In 2024-2025 the district purchased a 2018 Chevy Equinox. These recent purchases have improved our fleet. Roofing needs at BMS and BHS have been addressed over the past 9 years. BES roofing needs will be addressed in the next 3-5 years. Over the last couple of years, the district has become focused on conserving energy because utility costs continue to increase. Therefore, we have invested in replacing windows, doors, light fixtures, roofs, etc. that will make our facilities more energy efficient. The majority of these types of projects have been paying for themselves. They have also created a better learning environment for our students. SPECIAL NOTE: Recreation Commission Budgets It should be noted that while our district publishes the budgets for the Recreation Commission, the actual determination of need for these budgets is made by the Recreation Board of Directors. Unless the USD 244 board indicates otherwise, the Recreation Commission budget will be published as submitted by the Recreation Commission. Their total mill levy for general operations is 2.124 mills. The mill rate for the Recreation Commission is not considered a portion of the levies reported that are used by the school district. The 2025-2026 levies for the Recreation Commission are as follows:
Support the Supplemental General Fund at 33.00% of the General Fund The Supplemental General Fund is also commonly known as the Local Option Budget. When the new school finance formula was adopted by the Legislature in 1992-93, the provision for such a fund was included in the legislation. In order for it to be adopted after the initial year, the board was required to publish its notice of intent. If a protest petition signed by five percent of the electors of the school district was completed, the board was allowed to call for a ‘question election’ or could instead withdraw from its intent to establish a Local Option Budget. The 1997 Legislature provided another option concerning the Supplemental General Fund. Based upon this legislation, a board was allowed to establish a local option budget and, over a period of five years set the level of that budget at the average for schools of their size. At about the same time, the provision was enacted to allow school districts the opportunity to establish full and permanent authority to levy the maximum local option budget. Our district exercised this option and since the resolution was not protested, our district now has permanent authority to levy a maximum Local Option Budget. In the 2005 special session, the Legislature provided that any district with authority for a 25 percent (the maximum at that time) Local Option Budget may increase this to 27 percent for 2005-06. In 2006-07, the Legislature increased this to 30 percent and allowed it to remain at that level for 2008-09. While a special provision included in that legislation appears to allow it to increase up to 31 percent that requires a special hearing subject to a protest petition. Based upon advice from KSDE that the amount above 30 percent may be tested in the courts for constitutionality, since the 2007 Legislature passed two laws that are in conflict, the guidance given by KSDE is to leave the maximum amount at 30 percent. That option was exercised in the budget and can be realized with a levy of 4.218 mills. In order to use the 30 percent levy, a district must be spending ‘below the average’ for a district of similar size. Per the analysis provided by KSDE, our district does spend below the average and was authorized to increase the Local Option Budget up to 30 percent. While state aid for schools that choose to increase their Local Option Budget substantially increased under the 2006 finance law and remained at that level for 2011-12, our district wealth precludes us from receiving any state aid. Since 2007-08 the USD 244 LOB has been 30 percent of the general fund. In 2023-2024 KSDE determined that the state LOB average should increase to 31.6 percent. In 2024-2025 the state average has increased again to 32.00 percent. For the 2025-2026 school year the state average has increased to 32.3%, however we are requesting that the Board approve the state maximum of 33% to help support the recent increase to staff salaries. Maintaining this level is necessary to continue to fund the staff and programs already in place in the district. A portion of the salary increase authorized by the board, as well as increasing costs of utilities, gasoline, and diesel fuel, will need to come from the local option budget. As was explained in the introductory narrative, many Kansas school districts have needed to rely more upon the local option budget after facing years of legislatively approved funding increases that have averaged 6/10 of 1 percent per year for many of those years. Even with a similar revenue stream in the General Fund for 2025-2026, many districts will need to fund ongoing operational expenses with funds from the Local Option Budget. Our district is no exception. The 2025-2026 Supplemental General Fund Budget includes funding for the following:
Since the General Fund levy is established by the state, the only real option the board needs to consider during the budget hearing is whether to levy for the Capital Outlay Fund, the Supplemental General Fund, and the Recreation Commission. Since these budgets were created within the parameters discussed earlier that were supported by a majority of the board, it is recommended that the board approve the budget as presented. At least four votes are required to approve the budget. Attached is a copy of the Recreation Commission budget for 2025-2026. |
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3. Closing Item
Agenda Item Type:
Procedural
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3.A. Adjourn
Agenda Item Type:
Procedural
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