School Finance

Kansas school districts are governed by local boards of education elected by the voters of the districts. The operations of a school district are greatly influenced by state and federal laws, as well as requirements of the Kansas State Board of Education, that restrict how districts can raise money and how funding can be used. 

Basic Fund Types

Operational Funds

The General Fund and Supplemental General Fund or Local Option Budget (LOB) are the main operating budgets of our district.

Special Revenue Funds

Kansas law requires districts to use additional funds to account for certain program expenditures.  In our district, these special revenue funds include Adult Education, Adult Supplemental Education, Bilingual Education, Virtual Education, Driver Training, Food Service, Professional Development, Parent Education Program, Summer School, Special Education, Vocational Education, Special Reserves, Federal Funds, Gifts and Grants, Contingency Reserve, Textbook and Student Materials Revolving Funds, At Risk 4 Year Old, At Risk K-12, and Activity Funds. 

These funds can be viewed as operational. 

Capital Funds

Capital funds are restricted for land purchases, land and building improvements, and major repair and maintenance of buildings, equipment, computers, and furniture. The Capital Outlay Fund is a levied fund. By Kansas statute, there is a mill levy cap of 8 mills. Funds generated are restricted for capital outlay purposes, per statute and Board of Education resolution. 

Operational expenditures, such as preventive maintenance, teacher salaries, supplies, transportation, and services cannot be paid from the Capital Outlay Funds.  

Debt Service Funds

The Bond and Interest Fund is a debt service fund for the purpose of General Obligation, Refunding Bond Debt, or Temporary Notes. The mill levy for this fund is based on the revenue required to pay the annual bond and interest payment due on outstanding bond obligations. A bond issue is a financing instrument for school districts used to fund the purchase of land or buildings, construction of new facilities, major building additions and improvements, major site improvements and additions, technology equipment, and infrastructure, equipment and furniture. 

The Special Assessment Fund is also considered a Debt Service Fund for purposes of paying special assessment taxes. These taxes are usually assessed to our school district by the city or county governments for sewer, sanitation, sidewalks, curbing, etc. Kansas statutes allow for a mill levy to be assessed to pay for the debt of these special assessments.

Pass-Through Funds

Pass-Through Funds are a form of Special Revenue Funds. KPERS Retirement and Cost of Living Funds are two examples.

The large number of funds and the mechanism to provide revenues to support the expenditures in each of the funds make school finance challenging to understand. Please contact the Business and Finance Office with any questions, 785-832-5000.