School district could lose $3.4 million in funding

Olathe schools stand to lose up to $3.4 million in their current budget as state legislators debate ways to manage a projected $300 million shortfall in 2009.

Superintendent Pat All called the numbers “significant, historic reductions,” the likes of which she has never seen.

“We need to understand our part of the economic reality and be part of the solution, but we also recognize that our focus is to deliver quality and excellence,” All said. “We’re known for student achievement and the ‘Olathe way’ of taking care of our staff, students and community. The goal here is to put children first in our decision making.”

District staff are crafting contingency measures, dependent on three different plans proposed by state leaders, to plan for whatever reduction that could come their way.

Gov. Kathleen Sebelius proposed budget cuts that would translate to a $22 per student reduction, or about $1.3 million total with the influence on the district’s Local Option Budget.

The LOB taxing authority is a percentage of state aid, so decreases in state funds would decrease the LOB.

A Senate plan would result in cuts of $33 per student, or $1.7 million overall. A recently approved House proposal includes cuts of $66 per student, or $3.4 million.

Immediate steps to address the reductions include a hiring freeze for all open positions, including administrative vacancies; reduced professional development for all staff; cancellation of national and regional conferences; and evaluation of every program, department and service for additional efficiencies and cost reductions, All told the Board of Education at their regular meeting Thursday.

The district will try to address staff reductions using attrition when possible, All said.

“We could use staff talent to transfer or reassign the basic services we have to maintain,” she said. “If there’s ever a time to work together, it is now.”

The district also will craft proposals that would provide incentives for voluntary retirement or early resignation. The possibility exists for a transportation fee increase and the use of the COLA tax authority, or cost of living adjustment.

Projections for 2010 are grim, too. The Legislature will turn to that budget, estimated to have a shortfall of $1 billion or more, once it finalizes reductions for this year.

“We must do everything we can to minimize the impact on students,” All said.

The board already approved increases in various fees Thursday, including a 5-cent across-the-board increase in meals, a 2.5 percent increase in a la carte items, a $20 per month increase in full-day kindergarten and an increase of $30 per week for the district’s early childhood disability program.

The increases are estimated to generate up to $622,700 for the district next year. Fees have not been raised since 2003.

The bottom line, though, is that Olathe schools will have fewer resources to operate next year despite an anticipated increase in enrollment of 375 students.

“We want to preserve and protect what has been built in Olathe for decades,” All said. “We’re going to be strategic in our reductions as we are strategic in achievement. Nobody likes reductions, but we’ll be as careful as possible.

“We just hope they’re not so deep as to be not just painful, but to take steps backward.”

Additional information about the district’s funding situation will soon be available in a new “School Funding Update” section at www.olatheschools.com. The link will include podcasts by the superintendent, financial information, frequently asked questions and a link to submit questions.

A special board meeting is scheduled Feb. 19 to again review the budget and the updated legislative picture.