Lawrence USD 497 board approves publishing maximum 2025-26 budget authority, schedules Sept. 8 hearings

The USD 497 Board of Education voted 6-0 on Aug. 11 to approve publishing the district’s maximum mill levies and budget authorities for the 2025-26 fiscal year and to schedule hearings for Monday, Sept. 8, to consider (1) exceeding the revenue-neutral rate and (2) adopting the budget maximums.

Board President Gordon Ross said the action is not the final budget adoption but a routine step that sets the district’s maximum legal spending authority and preserves flexibility while state enrollment and final aid calculations are completed. "The mill rates you see tonight are the maximum we can set. They can go down from here but cannot go up without starting the process over again," Ross said.

Executive Director of Finance Cindy Frick presented the figures the board approved for publication. She noted a $5,615 base aid per pupil for the general fund in 2025-26, up from $5,003.78 last year, a 4.4% increase. Frick told the board the increase is partially offset by a requirement to use a lower, more current enrollment figure this year, which reduces state funding compared with prior budgeting rules.

Frick also described a sharp projected drop in state Local Option Budget (LOB) equalization aid: from nearly $4,000,000 two years ago, to about $2,800,000 last year, and an estimated $729,000 for 2025-26. She said the district’s assessed valuation per pupil has risen while enrollment has declined, which reduces state equalization aid and shifts more of the funding burden to local property taxes.

Other details Frick provided: the district is proposing a total maximum mill levy of 52.333 (up from 52.273 last year); capital outlay remains at the statutory 8 mills; bond and interest remains near 8.3 mills; and the district continues to plan for an expected significant increase in health insurance costs.

Frick explained the required publication and timeline: once the board approves publishing tonight, the notices must run in the newspaper at least 10 days before the Sept. 8 hearings; the board would adopt the final budget on Sept. 8; and the district must submit the final certified budget and enrollment to the Kansas State Department of Education (KSDE) by Sept. 20.

Board members asked for clarification about where state school funding originates and how equalization is calculated. Frick and Dr. Swift summarized that state aid is funded from statewide tax revenue sources and that some local property tax dollars are pooled in the state formula, which can then be redistributed by KSDE.

The motion to publish the maximum mill levies and budget authorities and to set the hearings passed 6-0 on a roll-call vote: Costello (yes); Franklin (yes); Gordon Ross (yes); Jones (yes); Kimball (yes); Byers (yes). The board’s approved hearings are: revenue-neutral-rate hearing at 6:00 p.m. Sept. 8 and the budget hearing at 6:05 p.m. Sept. 8.

Why it matters: publishing maximum budget authority preserves the district’s ability to use revenues if state and local receipts differ from current estimates. The shift in equalization aid described by staff would, if realized, increase the reliance on local property tax revenue for some budget funds and could affect long-term planning for programs and compensation.

What’s next: the board will hold the two hearings on Sept. 8. After KSDE certifies the district’s official enrollment (post‑Sept. 20), the district will finalize the budget and submit it to KSDE and Douglas County.