Hiawatha board reviews FY26 budget options, considers higher capital levy and schedules extra meetings before Sept. 8 hearing

The Hiawatha School Board on Monday discussed fiscal year 2026 budget proposals that would raise the district's total mill rate slightly above the county's revenue-neutral level to increase Capital Outlay funding and cover rising payroll and maintenance costs.

Superintendent: "The budget is merely a projection," the superintendent told the board, adding the district typically budgets a small enrollment buffer and that the base state aid per pupil rose from 5,378 to 5,615 this year. He recommended keeping the supplemental general (LOB) at 31 percent of the general fund while restoring Capital Outlay toward prior levels.

Board members heard two Capital Outlay options: returning the Capital Outlay levy to 6 mills, which the superintendent estimated would bring roughly $102,000 to the fund, or a midpoint of 5.625 mills, which would bring roughly $45,319. The superintendent said the recommended package would raise the district's proposed total mill rate to about 49.716; he said the revenue-neutral mill rate for the district is about 49.107, making the recommended proposal roughly 0.6 mills above revenue-neutral and the alternative about 0.24 mills above.

Why it matters: The board emphasized the tradeoff between preserving school services, staff pay and facility needs and the effect of higher property tax bills for residents. The superintendent used a homeowner example to illustrate taxpayer impact, noting an owner of a $260,000 house would see a roughly $40 increase from the previous year under the proposed package.

Details and context: The superintendent walked trustees through the three primary budget drivers he used: base state aid per pupil, assessed valuation and enrollment. He said the district budget projection assumes 835 full-time-equivalent students for FY26 and noted assessed valuation fell by about $2,000,000 from the prior year. He explained Kansas law requires a uniform 20-mill levy and that state formulas and equalization factors determine how base state aid translates into local revenue.

On the supplemental general fund (LOB), the superintendent recommended keeping the district at 31 percent of the general fund (the state average is about 32.3 percent), but warned the district used a small contingency this year to blunt immediate increases and that the approach may not be sustainable long term.

Board discussion: Board member Kevin Baldwin asked for confirmation of the recommended mill numbers: "So this is the correct number. We're going to 6. Correct?" The superintendent and other trustees discussed how the two Capital Outlay options would affect immediate repair needs such as HVAC, parking-lot work and concrete repairs. Trustees repeatedly noted rising costs for payroll, utilities and facilities maintenance and expressed concern about multi-year tax impacts on residents.

Meeting scheduling and public comment: Board members discussed a scheduling conflict with the city's meeting on Sept. 8 and asked whether the district could provide an additional opportunity for patrons to review and comment on the published budget. The board set a special meeting for Monday at 8:00 a.m. to consider permission to publish the proposed budget in advance of the required public notice, and agreed to hold the formal budget hearing on Sept. 8 at 5:00 p.m. The board also discussed holding an additional special meeting or an earlier session on Sept. 8 so patrons who would otherwise attend the city meeting could speak to the school budget; the board asked staff to coordinate logistics and availability.

Next steps: The board did not adopt a final budget at the meeting. The superintendent reminded trustees that publishing the proposed budget starts the public notification period; the formal adoption and any final mill rate decisions will follow the September public hearing and any additional special meetings the board schedules.