School Finance

Initial school funding details from Governor’s proposed budget

Details continue to unfold regarding Governor Brownback’s proposed budget and the impact on Kansas public schools. Various House and Senate committees are scheduled to receive briefings, and KASB staff will report new details as they become available.

Here’s what we know now:

For the Current Fiscal Year/School Year:

A spending “freeze” uses $86 million in current year Federal Education Jobs Funding to replace state funding. This helps create an ending balance for the state of $35 million.

• No additional supplemental funding for the current year is proposed to make up for the shortfalls in the statewide 20 mill levy, higher enrollment and more free lunch students counted for at-risk funding. Previous estimates suggest this could reduce the base $75.

Proposed for Next Year FY12:

• Base budget per pupil reduced from the current published level of $4,012 to $3,780.
  
• Special education increased by $60 million to comply with federal maintenance of effort requirements. This would equal approximately $90 on the base budget per pupil, but presumably will be distributed through the special education formula.
  
• The $86 million Education Jobs Funding used in the current year is replaced. This would avoid further cuts in the base.
  
• Despite the reduction in the base budget per pupil, total state funding for all K-12 programs – including special education, bond and interest aid, KPERS school aid, and replacement of the Education Jobs funding – is estimated to increase about $200 per FTE pupil.
  
• The ending balance for FY12 is only $7.5 million, which equates to about one-tenth of one percent. This means any shortfall in state revenues will throw the budget out of balance.
  
• A transfer of $200 million from the State Highway Plan is made to help finance state general fund expenditures.