Maize School Budget Basics for 2020-21
Budget Estimates: The budget is built on ESTIMATES in July for some student counts, assessed values, revenues, and expenses.
Student Full Time Equivalence (FTE): This is the number of students enrolled in the district on a full-time basis on Sept. 20 (half-day kindergarten is 0.5 FTE, as an example). The student FTE is used in calculating the district’s General Fund budget amount. Starting in fiscal year 2018, the budget formula used the highest student FTE from either of the previous two years or the average from the past three years. The budget formula also includes additional estimates for weighted enrollments in the following categories: high enrollment, Bilingual, Career and Technology Education, At-Risk, Transportation, Special Education, and Virtual Education. Our final operating budget amount will not be determined until the Kansas State Department of Education (KSDE) audit and Special Ed State Aid is completed.
Estimated Assessed Valuation: The Sedgwick County Appraiser determines an appraised value for personal and business property in the Maize district. The appraised value is multiplied by a factor of 11.5% on personal property and ranges between 12% and 33% on business and other property to form the district’s total assessed valuation. This assessed valuation from the county is not final until October or November. The district’s estimated assessed value is $516.4 million this year and is an increase of about $31.8 million, or 6.6%, from last year.
Fund Accounting: The budget is made up of many small budgets (funds) that make up the total budget. Each fund may have different budget rules and regulations on how expenses can be made.
General Fund: This is the main operating budget fund that also can transfer money to other funds. Legislative Block Grants froze the General Fund and Supplemental General Fund budgets for fiscal years 2015, 2016, and 2017. Under Senate Bill 19 in fiscal year 2018, schools were again funded using actual student enrollments from previous years and current Weighting FTEs to determine the General Fund and Supplemental General Fund budgets. The district’s estimated maximum General Fund budget is $50.6 million. General Fund expenses include the following areas: Instructional (teachers, aides/paraprofessionals), Student and Instructional Support (counselors, nurses and media specialists), Administration (central office, board of education, and building/district administration), Operations and Maintenance, Student Transportation, Student Activities and Athletics, and transfers to other funds.
Supplemental General Fund - also known as Local Option Budget (LOB): This is a supplemental, or additional, budget to the General Fund. The school board approved up to 33% authority for the LOB. This percent is multiplied by the General Fund budget in a formula to determine the LOB budget. This year, the LOB is estimated to be about $16.1 million. The district’s LOB expenses are used for a portion of the instructional certified salaries, technology expenses, and transfers to the Bilingual and At-Risk funds. The General Fund and LOB budgets are used for the district’s total operating budget. As part of the equalization requirement, the LOB also receives state aid through a formula. The district’s current equalization rate is 54.35% of the LOB budget, an increase of 0.98% from the prior year.
Estimated Operating Budget for 2020-21: The total General Fund published budget of $50.6 million and the published LOB budget of $16.1 million combine for the total estimated operating budget of $66.7 million. This is an estimate until the KSDE audit is completed and the final Special Ed state aid is determined by June.
Capital Outlay Fund: This fund allows the school board to levy taxes for equipment, property purchases, and/or facility additions. As of the 2005 legislation, 8 mills are the maximum allowed, and Maize USD 266 has a current resolution allowing up to 8.000 mills. The mill levy is used along with interest on idle funds, miscellaneous revenues, and possible year-end transfers from the General Fund to provide the budget revenues. Beginning in fiscal year 2015, the state provided Capital Outlay state aid. This amount was reduced mid-year, and the legislature continued that same reduced amount for fiscal year 2016. Due to the Equalization Court Case, Capital Outlay state aid was fully funded in fiscal year 2017 and is projected to continue. The district’s current state aid is 44% of the taxes levied in the Capital Outlay fund.
Bond Fund: This is approved by an election to build school buildings, and the funds are set up to repay the debt. The school finance law for bond elections prior to July 1, 2015 currently provides 44% state aid for the district’s bond payments. The bond election in June 2015 approved $70.7 million for additions and renovations to the existing Maize Middle School, Maize High School, Maize South High School, new Transportation Center, new Maize Early Childhood Center, and athletic field upgrades.
The bond election in August 2019 approved $108.2 million for the building of Maize Intermediate School, Maize South Intermediate School, a new building with an auditorium and indoor pool, and more. For elections held after July 2, 2017, the bond state aid calculation is calculated at 12%.
Other Funds: There are several other funds that do not have mill rates that make up the total budget. They are Bilingual Education, Driver Training, Food Service, Professional Development, Parent Education Program, Summer School, Special Education, Career and Postsecondary Ed, K-12 At-Risk, 4 year old At-Risk, and Virtual School. Most of these funds receive transfers from the General Fund or LOB.
Recreation Fund: The Recreation Fund was approved by public election and board resolution up to 1 mill that began in fiscal year2000. The school acts as the tax-generating revenue source for the Maize Recreation Commission (MRC) to operate. Money is collected on behalf of the MRC and then sent on to the organization. The district does not keep any of the money generated for the MRC.
Mill Levy: The assessed valuation and required local tax dollars combine to calculate mill rates for the county to process the school taxes. One mill equals one tax dollar for each $1,000 of assessed valuation. One mill will generate about $516,000 for the district from 2020 taxes (taxpayers usually pay half in December and half in May). For the 2020-21 budget, the district published for the full 33% LOB and showed total mills of 59.800, including the MRC, which is a 0.000 mill change from the 2019-20 adopted budget.
If the appraised value remains the same on a $100,000 Residential property, a 0.000 mill change should keep the taxes flat and $0.00 change if the final assessed valuation from the county remains the same as the estimated $516,385,034.
School Budget Timelines:
- The school district budget should be prepared on or before Aug. 1 of each year.
- There must be at least 10 days’ notice for the time and place of the budget hearing in the newspaper. The notice must include the proposed budget amounts.
- The budget must be certified to the County Clerk by Aug. 25.
Legal School Budget Timeline Requirements
- The School District budget should be prepared on or before August 1 of each year.
- There must be at least 10 days notice for the time and place of the budget hearing in the newspaper and includes the proposed budget amounts.
- The budget must be certified to the county clerk by August 25.