USD 383 board approves intent to exceed revenue‑neutral rate, citing budget pressures

The Manhattan‑Ogden USD 383 Board of Education voted 7‑0 on July 9 to approve certification of the district’s intent to exceed the state’s revenue‑neutral rate for fiscal year 2027, authorizing the Riley County clerk to accept that certification by July 20.

District budget planner Andy Hutchinson told trustees the recommendation reflects tradeoffs between holding a revenue‑neutral posture and maintaining services. Hutchinson said adopting the revenue‑neutral rate would leave the district about $2,260,000 ‘‘less’’ than under a flat mill strategy and that the district is working to preserve at least one month’s payroll and one month of other non‑personnel expenses as a contingency.

The vote follows a line‑by‑line review of mill‑levy options and discussion of factors that affect the calculation, including assessed valuation, enrollment trends and the local option budget. A board member asked, ‘‘If people are gonna advocate for that, what are you recommending we cut?’’ underscoring trustees’ concern about the practical consequences of holding revenue neutral.

Hutchinson and members noted the district has statutory constraints—such as an 8‑mill cap for capital outlay—and that state property‑tax changes (exemption increases) have tightened general‑fund yields. Trustees said they considered using weighted FTE assumptions and the cost‑of‑living option in their modeling.

The board’s action authorizes staff to publish required notices and proceed with the timeline that leads to the September budget hearing and the formal budget adoption process.

The district will publish formal budget documents and hold the required public hearings before final adoption. The next budget‑related review is scheduled at the August meeting.