Wichita Public Schools previews FY27 budget: $462.6M estimated general fund, enrollment declines cut audited revenue

Wichita Public Schools officials laid out a cautious FY27 budget outlook July 20, telling the Board of Education that enrollment declines and audit adjustments will constrain new spending even though assessed valuations and base state aid rose.

CFO Addie Lowell told the board the district’s estimated FY27 general fund is $462,600,000. She said the FY26 audit adjustments reduced district weightings by roughly 900 FTE, cutting the general fund by nearly $6 million and creating a total audit adjustment near $8 million across funds. ‘‘We adjusted out over 900 FTE from our current year weightings due to our enrollment decline last year, which ultimately resulted in a reduction to our general fund budget of nearly $6,000,000,’’ Lowell said.

Lowell walked the board through key budgeting terms — estimated, proposed and adopted — and the timing of the KSDE audit (Sept. 20 count date), which determines final audited enrollment and the district’s legal maximum. She emphasized that adopted budgets are subject to later audit adjustments and that the district uses conservative estimates so it can avoid midyear cuts.

The district faces several fixed-cost pressures: a scheduled 6% increase in the transportation contract; higher fuel assumptions (budgeting $5 per gallon versus prior $4); step-and-track salary catch-ups (estimated around $8 million); and a projected employer healthcare cost increase that could approach $9.5 million, creating roughly $21 million in fixed-cost demands that the district must absorb.

Lowell said assessed valuations as provided for budget planning rose an average 8.2%, but the district’s share of state equalization aid is dropping (supplemental general fund aid projected to fall from just over 50% to about 47.68%) because assessed valuation per pupil and enrollment shifts change equalization calculations. Those shifts mean the district likely captures only a portion of local valuation gains for local revenue; Lowell estimated a simplified average homeowner property-tax increase of about $97 if a property’s assessed value rose by 8.2% under an estimated 51.4‑mill levy.

The superintendent and CFO highlighted the district’s year-end transfers and cash position: unencumbered cash rose from about $362 million to $384 million after transfers including ~$11.5 million to employee health reserves, ~$4 million to contingency and roughly $20 million set aside for textbook purchases and adoptions. Administration said those transfers are largely one-time and that most of the current cash balance is already designated for near-term needs.

Board members asked clarifying questions about how much ‘‘new money’’ is available once enrollment declines are accounted for. Lowell confirmed that after accounting for reduced enrollment weightings, net new revenue for FY27 narrowed to about $2 million — not enough to fully cover the identified fixed‑cost increases — so the district will rely on planned vacancy-savings, cost savings and the cash reserves to bridge gaps in the short term.

Lowell outlined next steps and public processes: the revenue-neutral rate filing has been made, a revenue-neutral hearing is scheduled for Sept. 14, and the board will continue budget workshops and adopt a proposed budget in late summer with final adoption after required public hearings.

Board members and administration emphasized the need to communicate clearly to the public that modest valuation increases do not necessarily translate into significant additional district revenue once state-equalization formulas and enrollment declines are considered.