General Fund

The general fund is the main operational budget for the school district.  The dollars generated by this fund are based on student’s full time equivalency (FTE).  Each student is counted as one (1) FTE unless they are enrolled in kindergarten or receiving pre-school services in which the weighting would be 1/2 FTE.  Some students count for additional FTE weighting based on additional services they receive such as:  At-Risk, Vocational, and Special Education.  Also, additional dollars are received on bus riders who reside 2.5 miles or further from their school of attendance.  These “additional” funds MUST be transferred to the respective budgets:  At-Risk, Vocational, and Special Education. 

Each district has a 20-mill tax assessment for the general fund, which is set by Kansas statute.  The additional dollars for the general fund comes from state tax revenue.  USD 365 receives over 70% of its general fund from state tax revenue.  In 2009-2010 a portion of the general fund (approximately $320,000) came from federal stimulus money. 

Supplemental General Fund

The Supplemental General Fund is better known as the LOB (Local Option Budget).  The mill levy (19.777) for the LOB is set by the USD 365 Board of Education.  This fund is equalized based on the wealth of the school district.  The wealth of a district is figured by the amount of assessed value for the school district divided by the number of students enrolled. For every dollar ($1.00) expended through the LOB, approximately 55 cents is generated by local property tax and about 45 cents is state aid.

Summary of General and Supplement General Fund Budgeted Expenditures

Other Information:  The following dollars are budgeted in the general fund for 2009-2010.

Capital Outlay

The capital outlay fund is a resolution approved by the local board every five years.  Expenditures from this fund must be used for capital improvement or equipment expenses.  This includes computers, facilities maintenance, vehicles, roof replacement, etc.  USD 365 has a four (4) mill levy for the capital outlay fund.  Capital outlay funds cannot be used to transfer into any other fund, such as general fund.  Most recently, the board of education approved a contract to re-roof the remaining portions of ACJHS at a cost of $383,044.00.

Bond & Interest

The bond and interest fund is for facility improvement project such as new or renovated facilities.  USD 365 built Anderson County Junior Senior High School in 1992 by passing a bond issue.  Any new facilities projects would utilize the bond and interest fund.  This fund can only be used for capital improvement (bond issues).  The bond and interest fund is also equalized by state aid based on the wealth of the school district.  Presently, if USD 365 would pass a bond issue to build a new school we would receive 30% state aid on the principal and interest over the life of the bond issue.  (Example:  A $10,000,000 building would cost local taxpayers $7,000,000 and the state would pay $3,000,000.  The district would also collect state aid on the interest.  The bond and interest fund is a restricted fund in that the monies in this fund can only be used for principal and interest payments on outstanding bond issues.

Other Restricted Funds (Budgeted)

Contingency Reserve Fund

The contingency reserve fund can be used in an emergency for budget shortfalls.  Expenditures from the contingency reserve fund must be approved by the Board of Education.  USD 365 has $470,000 in its contingency reserve account.  With the present fiscal crisis the state of Kansas has experienced, many district have utilized this fund for cash flow to pay teachers, purchase supplies, etc.   Without a contingency reserve, it could be very likely the school district would need to issue no-fund warrants.

Summary of Total Expenditures Budgeted for 2009-2010