Leavenworth board publishes maximum budget ceiling amid declining enrollment, special‑ed shortfall

The Leavenworth USD 453 board voted Monday to publish the district’s maximum budget ceiling for the 2025–26 notice of hearing after a detailed primer from Superintendent Dr. Kellen Adams and district finance staff on enrollment trends, assessed valuation and special‑education costs. Dr. Kellen Adams told the board that declining enrollment and rising property wealth per pupil have reduced state aid rates and increased the share of revenue that must come from local taxpayers. "More students equals more dollars," Adams said, summarizing the central leverage point in the funding formula. Beth Maddox, presenting the proposed 2025–26 budget, outlined three options and recommended publishing the full ceiling (option 1). The board voted to publish option 1 so it could later reduce the published ceiling if desired; state law allows adopting a final budget that is equal to or lower than the published ceiling but not higher. The published ceiling sets the board’s maximum authorized spending and begins the formal public notice period required before the September budget hearing. Key numbers and budget pressures discussed Monday: - Enrollment decline: a loss of 368 students from 2021–22 (3,615) to 2024–25 (3,247), with count day set this year on Sept. 22. Superintendent staff said the district has not yet reached the bottom of the decline. - Special‑education shortfall: projected special‑education expenditures of about $9.7 million versus categorical and federal revenue of about $6.57 million, creating a projected transfer need of roughly $3.13 million from general/supplemental funds to cover required services. - Capital outlay changes: the district has used capital outlay to pay roughly $600,000 in staff salaries this year (statutorily permissible for certain positions); administration noted that spending sustainably from capital outlay can reduce funds available for bricks‑and‑mortar projects. - Cash balances and reserves: district cash totals were reported at roughly $27.3 million, but much of that sits in restricted funds (bond & interest and capital outlay) and is not available for general operations. Administration said operational reserves equal about 11% of the combined general and local option budgets, within a typical municipal target band (10–15%). Board members asked for follow‑up materials, including more detail on capital outlay commitments, the list of special‑ed contracted positions and the RFP process for any significant outsourced services. Administration said it will return with the requested materials ahead of the September budget hearing and that the formal budget hearing and revenue‑neutral discussion will be held on Sept. 8. The board’s vote to publish the maximum ceiling opens a public comment period and gives the district flexibility to lower the final adopted mill rate or expenditure ceiling when the board adopts the budget in September.