By CRISTINA JANNEY
Hays Post
The Hay USD 489 school board approved its 2023-24 budget at its meeting on Monday with a slight mill levy decrease.
The overall mill levy will decrease from 32.375 mills last year to 31.463 for the 2023-24 school year. Although the mill levy is decreasing, the assessed valuation has increased in Ellis County. The amount of tax raised will increase by about $900,000.
The state sets the general fund levy at 20 mills. The local school board has no control over that mill levy. The capital outlay mill levy was set by a previous board at 8 mills.
The supplemental general mill levy, which is also known as the local options budget, was set at 12.251 by the board Monday night, which was a decrease from 13.01 mills last year.
The district can levy up to 33 percent of its budget for its local option budget. USD 489 is levying at 31.6 percent of its budget.
The bond and interest line item was also decreased from 11.356 mills to 11.212 mills.
Local taxing units not only have to conduct public budget hearings but a revenue-neutral hearing if the taxes raised will be more than the previous year.
Because of the increase in valuation, the district was required to conduct a revenue-neutral hearing.
Several residents spoke during the public comment sections of the revenue-neutral and budget hearings. The speakers said they were concerned about paying the increase in taxes as a result of the increase in valuations.
Resident Duff Watson said his wages have not increased as much as his taxes have.
"We have improvements to the schools and they are very high-end and very nice improvements, but it's not school buildings that make the school. It's the teachers in the classroom," he said.
Resident Ken Kennedy acknowledged it was late in the budget process to make changes to the budget.
However, he suggested the school district as well as the city and county consider dropping the local mill levies to decrease the impact of increased valuation on taxpayers.
If not this year, he urged the school board to decrease either to local option budget mill levy or the capital outlay mill levy next year.
"Those who live on fixed incomes, it's really hard for them to come up with those extra dollars," Kennedy said.
Another audience member Cody Marintzer said his valuation went up $30,000.
"We want to know that you are spending our dollars wisely," he said.
Superintendent Ron Wilson said all costs to the district have increased as a result of inflation.
Kyle Carlin, director of the special education cooperative, said the percentage the state reimburses for special education is anticipated to decrease this year, which means local districts like Hays will have to increase contributions from their general funds for those services.
The board already approved raises for both teachers and classified staff.
Board member Allen Park suggested decreasing the capital outlay mill levy by a mill. One mill in the capital outlay budget would equal about $400,000.
Chris Hipp, district assistant superintendent of business, said if revenue was cut from the budget at this point, it would have to come from somewhere.
He said the district is using capital outlay funds to pay off multiple lease purchase agreements, including work on HVAC systems and the Early Childhood Complex that have already been completed.
"You have to be careful about how that would affect your cash flow on paying off those leases," he said.
Board member Meagan Zampeiri-Lillpopp said the district's five-year plan shows a reduction in the use of capital outlay money in light of the bond construction.
"We are making up for a long period of low state funding and local funding that was very low and not sufficient to care for our buildings," she said.
Wilson said the biggest mistake the district could make now is to cut its capital outlay fund.
"This district has a history of not taking care of its facilities. This district suffered because of that," Wilson said. ...
"We still have some very old buildings. Regardless of the bond, there will still be things that need taken care of and big ticket items and unexpected things."
Board member Curt Vajnar said he has been hit hard by the increase in the local valuations. He saw tax increases for his home, business and agricultural land.
Although he voted in favor of the budget, he said he hoped during the coming year, the district would consider costs.
"As we make decisions, we have to be in the shoes of some of these taxpayers," he said. "I hope we will consider this as we go down the road."
Park abstained from the vote. Per procedure, that abstention was counted as a no-vote.
Conservative Republicans on the Kansas Board of Education have used this tactic as a means, for all practical purposes, of voting no without officially taking a stand on important policy issues.
Mark Ferguson, legal counsel to the state Board of Education since 2009, called it an "abdication of the responsibility to vote or to take a position on a particular issue," in a news story written by the Kansas Reflector and republished by the Hays Post in June.