Print edition: 
HUTCHINSON — A top financial expert in the Kansas Department of Education is predicting another difficult funding year for public schools.
Deputy Commissioner Dale Dennis told a group of educators in Hutchinson that the state is likely to face additional revenue gaps next year. Dennis says that's because federal stimulus money will have run out and property valuations have declined.
"I don't know of one specific game plan to solve that," he said Tuesday. "I know some (legislators) are sure hoping that the economy will turn around and solve part of that. But that's an awful lot to solve."
Legislators took action this spring to increase state revenue by raising the state sales tax rate to 6.3 percent from 5.3 percent. The money was used to cover expenses, including education and social services.
Dennis thinks the state must come up with an additional $400 million to meet its court-ordered education funding responsibility in fiscal 2012. The figure should be close to $4,500 per student in the current year, but is only $4,012.
Dennis said the decline in property valuations hurts local school districts who set tax levies to support education programs. The money must be made up by increasing the rate, relying on additional state support or making additional cuts.
"The most schools can hope for is break even, no more cuts," he said. "I think we've got another year or two that are going to be real tough.
"I don't believe a tax increase will be considered this year. I think what is going to happen is that they'll cut spending and make reductions until the economy turns around. And the big issue is jobs."
Alan Conroy, director of Legislative Research, said current projections are that Kansas will have a budget gap of $285 million to fill for the budget that begins July 1, 2011. But that figure includes payments to local governments and other revenue transfers that legislators have delayed or canceled in recent years.
New federal stimulus dollars for Medicaid payments already budgeted this year were about $47 million less than anticipated, Conroy said, but Kansas did get about $92 million in federal education money for preserving teacher jobs that could be used to offset expenses.
