School Finance Update

Next year, for the first time, the Olathe School District will receive fewer dollars per student than the year before — in fact, funding will go back to 2006 levels. This is due to the economic conditions in the state. To meet this challenge, the district initiated an early retirement incentive to reduce staff through voluntary attrition, and succeeded in downsizing by more than 5 percent voluntarily. More than 50 district level positions will remain unfilled or will be moved to the schools to reduce the impact on the classroom.

Message from Superintendent Pat All

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• The final reduction in state funding for next year is $153 dollars per student, or about $4.5 million for our district.
• The district has downsized by more than 250 staff members in response to this historic reduction.
• We will continue to realign staff positions to meet the needs of students in the fall.

• More than 250 district employees have resigned or retired this spring.
• A number of employees will change positions and locations because of this downsizing.
• We appreciate staff keeping their focus on students, in spite of these challenges. 

• The state has reduced school funding by $66 per student next year, plus a 1 percent reduction in special education. This is the largest reduction ever in school funding. The Legislature warns that more cuts may be coming, as state revenues continue to fall short of projections.
• The Board of Education meets April 23 to review the success of the district's early retirement incentive, which has succeeded in reducing staff significantly, and to determine whether other budget balancing measures will be needed.
• House Bill 2095 would decouple the Local Option Budget from the general fund, saving the Olathe district $400,000 this year, and at least $1.2 million next year. We support this bill.

• We are closely monitoring three pieces of legislation in Topeka
• Two funding reduction plans are in conference committee—a $33 per student cut approved by the Senate, and a $66 per student reduction approved by the House.
• We support HB 2095, which would decouple the Local Option Budget from the general fund, saving the district $400,000 this year and possibly more next year.
• We oppose HB 2280, which would eliminate state aid for school bonds, creating an immediate tax increase at the local level.
  

• Why does the district open new schools even when state funding drops?
• Enrollment continues to grow - nearly 400 new students expected in 2009-10.
• Bond funds are approved by the local community, and can NOT be used for operating expenses, such as teachers' salaries, supplies and other ongoing costs.
• The district receives additional funding from the state for opening new schools, if they are occupied by students.

• The Legislature is considering the governor's amended budget, which would reduce school funding by $33 per pupil.
• The reduction would extend for at least two years, through the 2010-11 school year.
• Therefore the district must focus its planning on known reduced revenues for two years, even as health care and other costs continue to rise.

• The governor’s amended budget would use federal stimulus dollars to help balance the state budget.
• While this may reduce the state’s need to cut school spending, we still anticipate reductions of historic proportions.
• After the April 17 deadline for the early retirement incentive program, the Board of Education will hold a special meeting in April to determine whether additional staff reductions are needed.

• State funding cuts could be as much as $500-$900 per student for the 2009-10 school year.
• A district incentive for early retirement will help reduce staff and help with planning for next year.
• May 1 is the state deadline for districts to notify teachers that their contracts will not be renewed. Unfortunately, we will not know until at least mid-May what the funding cuts will be.
• Our goal throughout this process is to try to minimize the impact on the classroom.

• The Olathe Board of Education has approved an incentive plan for early retirement.
• The district hopes to reduce staff through voluntary attrition to avoid involuntary reductions.
• The Legislature has asked for information about how the district would be affected by cuts of 10 to 18 percent for the 2009-10 school year.

• The district, together with the Olathe Chamber and city officials, met recently with Senators Brownback and Roberts and Congressman Moore about the importance of public education to economic development in the area, also requesting that Congress refrain from increasing requirements and mandates on public education during this period of reduced funding.
• The Board of Education will meet Feb. 19 to discuss the budget and consider incentives for voluntary early retirement and early notification of resignation.
• The district hopes to reduce a number of staff positions through voluntary attrition.

• The district must cut spending by up to $4 million this year, with deeper cuts next year.
• Reductions will include a hiring freeze; vacant administrative positions; reduced school budgets.
• We will try to minimize impact on students and encourage voluntary attrition.
• The board will hold a special meeting Feb. 19 to discuss additional steps.

• The Olathe School District is facing historic budget cuts for both this year and next year.
• We don't know yet exactly how much the cuts will be, but know they will be significant.
• We are presenting a plan for spending reductions to the Board of Education Thursday, Feb. 5.
• Our goals are to try to minimize the impact on the classroom, and to reduce staff through attrition as much as possible.