KSHB 41 News reporter Braden Bates covers parts of Jackson County, Missouri, including Lee's Summit. Send Braden a story idea by e-mail.
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The Lee’s Summit R-7 School District could end the year with a $6.5 million deficit because of a combination of lost federal funds, changes to commercial assessments, and a senior tax freeze.
Superintendent Dr. David Buck detailed the financial challenges in a budget update letter. KSHB 41 News Lee's Summit reporter Braden Bates reviewed the letter and met with the superintendent to discuss the shortfall.
"I think we, just like your personal budget, we need certainty," Buck shared with Bates. "And all the sudden we do not have certainty."
The deficit stems from multiple unexpected financial hits rather than a single issue. Before creating this year's budget, the district knew of at least one loss.
"Then we knew this part was coming. The first tranche of SB190, the senior tax freeze came," Buck said.
That resulted in a $1.6 million loss of funds, which was more than the district estimated. Another unexpected loss came from a decision made in December after the district solidified its tax rates.
"The new county executive decided to change the commercial assessments,' Buck said. "Once we set our tax rates in September, and it get to October, we can not change that tax rate."
That change resulted in a loss to the district of over $3.6 million. In July, the district learned of a loss of more than $900,000 in federal funds.
The district also relies on a state funding formula that may fall short.
"We’re also hearing the state may not be able to fund the formula this year," Buck said. "The fully funded formula is $7,145 dollars per kid, and right now we’re being funded at $6,900 per kid with the hope it will reach that. It is becoming less likely we will reach that full funding."
He said last year the formula didn't provide full funding, but the margin was smaller.
To mitigate the deficit, the district is focusing on saving money. The district will not hire for new positions, with the exception of seven special education staff members.
"We are trying cut as many things budget-wise by 10% as possible," Buck said.
He said these cuts will come from other funds rather than salaries or personnel.
When asked about staffing concerns for upcoming years, Buck noted the district is currently stable.
"So, right now we look great for next year," he said. "We’ll cross the year after that when we know more."
Buck said the district is in a wait-and-see period, but is watching the state and county closely as he expects further funding impacts.
"We’re going to do the best we can to educate kids," Buck said.
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