USD 111's Budget Breakdown: Understanding Key Funds and Tax Implications
Each year, as Kansas school districts prepare their budgets, the process can seem complex. For USD 111, the budget comprises 14 distinct funds, all of which are reported to the state. Among these, two funds stand out due to their unique roles: Federal funds and the KPERS fund.
Federal Funds: Navigating Grant Monies
The first of these unique funds includes various federal monies, such as ESSER III, Title I, Title II, Title IV, and other federal grants. These funds are separated in USD 111's accounting system but are consolidated into Fund 07 for state reporting purposes. Each grant award is tied to specific criteria that must be followed for both expenditures and federal reporting, making it essential for the district to carefully manage these funds to comply with federal guidelines.
KPERS Fund: A "Flow-Through" Account
The second unique fund is the KPERS (Kansas Public Employees Retirement System) fund. This fund functions as a "flow-through" account for state retirement contributions. Essentially, the district projects salaries for the year, and after each payroll, the corresponding KPERS amount is deposited by the state into the district's bank account. Within 24 hours, this money is transferred to KPERS but must be reported in both state and local accounting procedures.
Budget Authority vs. Actual Spending
When preparing the budget, the superintendent must consider "budget authority" versus what the district will spend. Budget authority provides the legal right to expend up to a certain cap. For instance, USD 111 has budgeted $1,118,368 for Capital Outlay this year, with an estimated $500,000 earmarked as budget authority (unforeseen expenses). This fund is used mainly in USD 111 for custodial salaries, maintenance projects, vehicle purchases, facility rentals, and building repairs. One major expense planned is the purchase of a bus this year. The district budgets higher than expected in this fund to ensure they have the authority to cover unforeseen expenses, for example, unexpected roof repairs due to hail or wind damage. If the district had only budgeted for anticipated expenses, they would not have the authority to cover these additional costs.
General and Supplemental General Funds: Key Revenue Sources
Two major funds that districts manage are the General Fund and the Supplemental General Fund, often referred to as the Local Option Budget (LOB). Revenue for the General Fund comes from a uniform mill levy of 20 mills applied across all Kansas districts. This fund also includes Special Education state aid dollars, which are deposited in our bank and then immediately transferred to the Doniphan County Educational Cooperative. The LOB is a percentage of the General Fund, meaning that as the General Fund increases, so does the LOB. Unlike some districts, Doniphan West receives 0% state aid for the LOB, meaning all revenue for LOB and Capital Outlay comes from local taxes.
Capital Outlay and Local Taxation
The district receives 8 mills for Capital Outlay. For the 2024-25 school year, the projected assessed valuation for the county is $81,005,275, which means a mill in the district is worth approximately $81,005. Multiplying this by 8 mills, USD 111 expects to receive around $648,040 in property taxes. Given that the district receives no state aid for Capital Outlay, these funds are crucial for maintaining the district's two older facilities—a challenging task when major repairs like a new HVAC system can cost millions.
Tax Requests: A Decrease from Last Year
Despite the challenges, USD 111 is asking for $1,962,678 in taxes for the upcoming year, down from $1,970,809 last year. While the mill levy has increased slightly due to property valuations, the district is requesting less in tax dollars from patrons than in the previous year. This careful management reflects USD 111's commitment to balancing the needs of the district with the financial realities of the community it serves.
Correction to Tax Documents: USD 111 Addresses Concerns
Recently, USD 111 patrons received tax documents that have caused some confusion and frustration. Unfortunately, these documents contained errors.
To clarify, in 2023, the tax notices and statements broke out the school district funds separately, allowing patrons to see each fund individually. However, for 2024, due to some parcels being subject to more than 12 taxing entities, the school’s General and General Supplemental funds were combined on the statement.
On the 2024 tax statements, only the General Supplemental tax is listed in the 2023 Tax column. Meanwhile, the total tax for both General and General Supplemental funds is combined and displayed in the 2024 Tax at Revenue Neutral Rate and 2024 Maximum Tax columns. This has led to the mistaken impression that the school district is proposing to levy additional taxes without holding a hearing.
We apologize for any confusion and welcome any questions you may have on our 2024-25 budget.
Links to the approved budget can be found on our website. 2024-25 Budget Documents