Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Finance Cost Of Living topic
No spam. Unsubscribe anytime.
Paola school board approves option to levy "cost of living" authority after lengthy finance discussion
Summary
After extended budget questions, the Paola USD board approved a resolution allowing the district to levy a statutory 'cost of living' authority in future budgets; board members discussed state aid declines, mill-levy math and timing before a 7-0 vote to approve the resolution.
The Paola Unified School District Board of Education voted unanimously to approve a resolution authorizing the district to apply the state's so-called cost-of-living levy in future budgets, giving the district an option to add a levy in July if conditions warrant.
The measure does not automatically raise taxes. Board members were told that passing the resolution simply preserves the option to use the authority during next year’s budget process; the board would still have to qualify for the levy each year and vote a budget that uses it. “Passing the resolution tonight gives you the option,” a district staff member, Jimmy, told the board. “If you like, my job is to give you the options. You have to weigh the pros and cons.”
District staff summarized the fiscal context: two recent bond levies will retire in July, producing a roughly 6‑mill reduction; the cost‑of‑living authority would add about 2 mills (and the local option budget impact roughly 1.7 mills), leaving the district with a net mill levy lower than the current level. Jimmy provided dollar amounts: the district currently levies about $1.4 million for bond and interest; the cost‑of‑living levy would add approximately $511,000 in gross levy authority (with an LOB impact of about $171,000); in the district staff’s example the net tax burden would still be lower next year than this year.
Staff also summarized revenue pressures the district faces: a projected net drop in state aid of roughly $400,000 next year (staff listed $343,000 and $421,000 as state‑aid reductions in the prior two years) and enrollment losses that trim the district’s share of base state aid (staff identified about $57,000 of the decrease as enrollment‑driven). Jimmy said the district has been revenue neutral in recent budget cycles and that the cost‑of‑living authority can provide flexibility without borrowing. He noted the district must re‑qualify for the authority annually and that Kansas State Department of Education (KSDE) does the calculations that determine eligibility.
Board members questioned alternatives to the levy and the optics of the levy’s name. One board member asked whether internal savings had been explored to avoid asking taxpayers for additional revenue; another said the phrase “cost of living” was misleading because the levy’s mechanics are statutory, not a general cost‑of‑living adjustment. Several members emphasized they were approving only the resolution to preserve options for the July budget process. “If we don’t pass it, there’s no option,” one member said before the vote.
On a roll call, the motion to approve the cost‑of‑living resolution passed unanimously, with seven board members voting in favor.
Staff clarified next steps: if the board approves the resolution, the district will publish statutory notice and, in July, use updated assessed‑value figures and KSDE calculations to determine whether to levy the authority and the amount. The board must still approve the budget in July and will publish taxpayer notices if the board decides to exceed revenue‑neutral rates.
The resolution passed 7‑0 and will be published as required; any decision to use the authority requires subsequent budget votes and updated appraisal data in July.
