Smithville R‑II board hears state funding cut, considers 3.6% compensation plan

Smithville R‑II Superintendent Dr. Moss told the board on May 1 that the district expects a reduction in state funding of about $245 per student — roughly $600,000 in lost revenue — and outlined local revenue that will help offset the cut, including an anticipated data‑center pilot expected to bring about $1.5 million locally.

"We believe that will equate to a little over 1.5 million in new revenue," Dr. Moss said. He also said the state underfunding translates to "$245 per student. So I'm asked many times, what does that mean for Smithville in real dollars? That's $600,000." The superintendent emphasized the district's strong local revenue picture — growth, bond proceeds and levy transfers — but warned state reductions increase uncertainty.

Patrick Nichols, reporting for the Finance Committee, said the committee continues to plan for uncertainty and estimated a roughly $950,000 shortfall next year after factoring expected revenues. "Our funding for next year is extremely uncertain," Nichols said. "We do expect, roughly 950,000 shortfall in funding next year."

In response, the board reviewed a staff recommendation to set a baseline compensation package for 2026‑27 that would include a 3.6% step increase for classified and certified staff. Staff provided preliminary cost estimates tied to the proposal: about $80,000 for added steps on the certified/classified salary schedules, roughly $145,000 to cover an anticipated 6.5% increase in medical and dental premiums (previously approved in March), and about $15,000 for buyback increases. When rolled together, staff estimated the incremental cost to be about $700,000; board members said the district has committed roughly $940,000 toward these compensation and benefit items in planning discussions.

Board members emphasized the recommendation is informational only at this meeting and that legal counsel guidance and state budget developments will guide final action. "We have some questions out to our administration on getting clarity with our legal counsel going forward," a board speaker said. The board indicated it would take formal action on compensation at the June meeting after additional clarification and budgeting work.

What’s next: The board deferred final approval of the compensation package to the June meeting so staff can confirm legal and budgetary details and monitor state funding actions.