Financial oversight committee urges delay on new bond; board adopts unrestricted reserves policy as federal grants remain under review

A district financial oversight committee recommended on July 7 that Wichita Public Schools postpone any bond referendum for the 2025–26 school year and instead focus on building public trust, clearer communication and cross‑sector partnerships, the committee’s vice chair told the Board of Education.

The volunteer group, assembled after a failed February 2025 bond, met three times and gathered community feedback. Lindsay Powrousseau, vice chair of the oversight group, told the board that while community members support investing in schools, that support is conditional and hinges on clear, repeated messaging, tangible accountability steps and better engagement of educators and staff.

“We heard… support is not automatic, it’s conditional,” Powrousseau said, urging the district to pursue a transparent, phased approach and to consider alternatives — including breaking projects into smaller chunks and pursuing cross‑sector collaborations for big items such as a proposed Future Ready Center.

At the same meeting the board adopted a new unrestricted reserves policy, Policy 34‑60, intended to set minimum and maximum thresholds for available cash. Addie Lowell, chief financial officer, said the policy’s minimum mirrors the district’s historical contingency practice (approximately the average of one state aid payment) and the suggested maximum aligns with Government Finance Officers Association (GFOA) guidance of roughly two months of operating revenues.

Why it matters: The district faces major capital needs (East and North high schools were cited) while operating with a cash‑flow model that relies heavily on property tax collections and state aid that arrive after the fiscal year begins. The oversight committee’s request to delay a bond reflects a community skepticism that the committee says must be addressed before voters will back a large referendum.

Federal grants under review

Lowell told the board that several federal formula grants — including Title I, Title III and Title IV — were being held at the federal level for OMB review as of June 30. She said the district’s immediate message is that staffing and programs funded by those grants are not being cut and that the district has cash reserves to continue operations short‑term, but added that the situation requires monitoring.

“The district has sufficient cash reserves to continue to support these programs without interruption,” Lowell said, adding that the district is working with Kansas State Department of Education (KSDE) guidance and expects further updates.

Budget and mill‑levy discussion

The board also discussed revenue neutral rate deadlines and an estimated change in assessed valuations for Sedgwick County of about 8.7 percent. District staff presented a draft mill levy picture that would generate roughly $101 additional annual property tax for the median Wichita home under current estimates, but stressed the figures are preliminary and will change as the August and September budget process proceeds.

Committee recommendations and board actions

- The Financial Oversight Committee recommended pausing a bond vote for 2025–26 and instead pursuing three priorities: trust building through transparent communication, cross‑sector collaboration and strategic planning for any future bond using community feedback and verified oversight mechanisms.

- The committee recommended short‑term transfers into capital outlay and identified about $17.4 million in available year‑end general fund savings that district administration proposed moving to capital outlay to address urgent facilities needs. District staff said that even with that transfer, facility pressures remain substantial.

- The board voted to adopt Policy 34‑60 (Unrestricted Reserves) during the meeting. Motion to adopt was made by Kathy (board member) and seconded by Knock (board member); outcome recorded as approved 7–0.

Board members sought more staff engagement in financial discussions. Several members proposed a parallel channel for educator and classified‑staff input rather than adding voting staff to the citizen oversight panel; district administration said it will propose options for broader engagement.

What’s next

District staff signaled they will bring back mill‑levy forms and a recommended revenue‑neutral intent form before the July 20 submission deadline, and board members requested a budget workshop to review options before the board’s August and September hearings. The oversight committee said it will continue meeting in the fall and support the district’s outreach and accountability work.