The Manhattan-Ogden school board will continue its budget process and consider publishing notice of public hearing on the budget at a special budget meeting Wednesday.
The board will meet at 5:30 p.m. Wednesday at Robinson Education Center, 2031 Poyntz Ave.
Last week, Lew Faust, director of business services, presented the board with a budget that calls for a 5.326-mill increase to 62.115 mills in 2020. A mill is $1 in tax for every $1,000 in assessed, taxable property value.
Based on a 0.4% increase in the average value of a home in Riley County, that means that a homeowner paying $607.07 in 2019 taxes on a $100,000 home would pay $671.18 in 2020 taxes on a $100,400 home.
That’s an increase of $64.11 or 10.56%.
Under Kansas law, the 20 mills for each district’s general fund go directly to the state, which then allocates money to each district in equal amounts per student, and residences receive a $20,000 exemption in home valuation from that specific property tax.
District officials said most of the increase comes from the district’s bond and interest fund, which will start to see the effects of a $129.5 million bond issue for school construction projects that voters passed in November. Property taxes for that fund are expected to jump 7.777 mills to 18.461 mills in 2020.
School districts across Kansas will see increased state funding following a decade-long lawsuit challenging state school funding as inadequate. Because of increased state funding, the school district’s budget authority is higher this year, and without the higher bond and interest fund, district officials said the school’s property tax needs would actually be less this year.
The district’s budget, up $21.6 million from $85.2 million last year, includes an $7.8 million jump in instruction funds following district approval of a 6.5% raise for teachers. The $51.1 million in instruction funds are the district’s largest expense and represent 48% of the district’s total $106.8 million budget.
The budget also reflects a $6.9 million increase to $15.3 million in the district’s debt service costs as part of the first year of debt repayment on the $129.5 million in bond projects.
If the board moves to publish notice of a budget hearing, that hearing would be scheduled for the board’s Aug. 7 meeting. By state law, the board would not be able to approve a higher budget than what is published in the notice, but it could decide to lower it.