Here’s how the block grant funding is working in Royal Valley.
“The Royal Valley Board of Education is proposing a 5.322 mill increase for its 2016-2017 school budget to help offset a reduction in state aid due to the block grant budget formula…
“Superintendent John Rundle explained to the board that the district was able to decrease the local mill levy last year due to the ruling of the Gannon vs. the State of Kansas court case, which required the state of Kansas to provide equity in state aid for the LOB. To provide that equity, the state fully funded the LOB as opposed to prorating the funds under 100 percent. In the past, the LOB was prorated at 78 percent. With the change to the block grant budget formula, LOB state aid is capped and once again prorated at the local level for the 2016 fiscal year.
“’With that equity no longer in place this year because of the new block grant, five mills of the LOB are now passed back to the taxpayer,’ Rundle said…
“Rundle pointed out that the proposed budget includes $9,185,775 in estimated general operating expenditures for the new school year, which is up $2.5 million from last year. The increase is due to several changes made at the state level.
“’I want to be very clear that the increase is only because of changes made in law this year on what is run through the general fund,’ Rundle said.
“Supplemental general state aid, capital outlay state aid and KPERS (Kansas Public Employees Retirement System) are now included in the district’s general fund. Together, those items are an additional $2,431,717 now being run through the general fund: $1,626,881 for supplemental general state aid, $700,679 in KPERS aid and $104,157 in capital outlay state aid.
“’Basically these funds are passing through the general fund now before they are distributed,’ he said.
“By running these items through the general fund first, board members said it looks like the state is giving the district more funding, when it is not.
“’It has an appearance that is deceiving,’ Rundle said.”
Read more here: http://www.holtonrecorder.net/news/rv-proposing-5322-mill-increase