Five-year plan and budget update: sales and property tax collections up; payroll timing explained

Finance staff presented a five-year plan update and fiscal-year highlights at the June 10 Johnson County Board of Education meeting, reporting strong local collections and outlining payroll timing that affects June expenditures.

Staff reported general-purpose appropriations were 86.2% expended as of the report date; Head Start appropriations were 84.4% expended. Local option sales tax collections for fiscal year 2024–25 were reported at $1,554,731, an increase of $187,101 from the same time last year. Property tax collections were reported at $2,518,395, up $67,015 from the same period last year.

Administrators explained the district processes 12 paychecks for 10-month employees so that teachers receive two checks in June (one to cover July expenses). Payroll timing was raised as a significant June expenditure pressure: the district must issue payroll checks in June to record the expense in the current fiscal year, and a large payment to Connections Academy (described as over $2,000,000 in the packet) contributes to June’s high outflows. Staff said some federal grants allow a 15% carryover, and Title I allocations commonly run on a rolling 15-month cycle, so those funds often do not “close” until September and can carry as a carryover into the next allocation year.

Board members asked clarifying questions about payroll structure and about which federal funds can carry over; staff said most federal funds permit a limited carryover (commonly 15%). No budget reductions or new allocations were approved at the meeting; the discussion was informational and meant to guide the upcoming budgeting process.