The Iola school district expects to slightly drop its tax rate in the coming fiscal year, thanks to stable enrollment and increased valuation.
The board set a budget hearing for 6 p.m. Monday, Sept. 11. They will also have a hearing on the revenue neutral rate, which is what it would take to generate the same amount of revenue as the previous year using the current assessed valuation.
Superintendent Stacey Fager discussed the proposed budget with board members on Monday evening.
The good news is the district’s valuation is up about $5 million, from $60,205,000 to $65,5222,220. That means each mill — or taxing unit — will generate more money.
Last year, the district saw its first enrollment increase in 15 years thanks to a robust preschool program and a new elementary school.
Fager expects enrollment to be more stable this year and estimated student numbers around 1,058.
The preschool program, though, continues to grow so significantly that administrators must make tough decisions about capping enrollment. They’ve had to turn some families down, as there isn’t enough room in this year’s program. Some of the requests have come from outside the district.
Fager explained to the board how different “weighting” factors are added to the enrollment count to estimate the budget. The district gets credit for certain factors, such as how many students are taking Career and Technical Education courses or how many qualify for free meals.
Adding those factors brings the total to 2,084.6, which is calculated by per pupil state aid plus additional virtual education funds for a total of $10,670,845.
Every school district in Kansas contributes a 20-mill local option budget to the state for the “local option budget,” which is then divided and redistributed to meet the goal of providing an equal education no matter the size of the district.
In USD 257, that means taxpayers will contribute $1,031,292.
Fager pointed out that USD 257 will receive $10 million from the state, which means the district pays just about 10% compared to what it receives.
“We are a district that received a lot of state aid,” Fager said. “This makes Kansas proportional, so a student in Iola gets the same education as one in Olathe or a larger city.”
Next, Fager explained the supplemental local option budget, which is the amount taxpayers contribute directly to USD 257 that is not reapportioned by the state.
Because of the increased valuation, the district’s tax levy here will drop about a half-mill to 16.566. Last year, it was 17.051; the previous year it was 18.41. That’s because the district’s valuation has increased significantly the previous two years.
