USD 383 board approves nearly $1 million to keep after-school agreement following loss of grant
The USD 383 Manhattan-Ogden school board voted Wednesday to notify Riley County that it intends to exceed the revenue-neutral property tax rate for the 2027 fiscal year budget while also approving nearly $1 million in funding to keep after-school programs affordable following the loss of a federal grant.
The board unanimously approved certifying its intent to exceed the revenue-neutral rate, a required procedural step before adopting a budget that would generate more property tax revenue than the previous year. District officials stressed that rising operating costs and statutory funding requirements make the revenue-neutral rate impractical for school districts.
Board members said adopting the revenue-neutral rate would create an immediate $2.6 million revenue shortfall before accounting for inflation, insurance costs and employee wages.
"It's not really realistic or practical," board member Lew Faust said during the discussion, noting that school districts have less flexibility than cities and counties because portions of their budgets and tax levies are set by state law.
Superintendent Eric Reid and Chief Finance Officer Andy Hicks also noted that districts must continue responding to inflation and increasing costs while maintaining facilities and required services.
The board also approved a one-year, $924,177 agreement with the Boys & Girls Club of Manhattan to provide after-school homework assistance at seven elementary schools.
The agreement follows the loss of federal 21st Century Community Learning Centers funding, which had subsidized after-school programming. District administrators said the funding will allow families to continue paying about $50 per month instead of an anticipated increase to $175.
Nathan Downs, assistant superintendent of teaching and learning, said the program will be funded entirely through the district's at-risk education funds and will not reduce existing building-level at-risk programs. The district also plans to track student outcomes under new state accountability requirements.
Board members praised the agreement as a way to preserve affordable after-school care while supporting academic achievement.
In other business, the board approved a new employee health insurance plan through Comfort Health for the 2026-27 plan year.
Administrators said the district sought alternatives after receiving an initial 23% renewal increase from its previous carrier. Even after negotiating, officials said the previous insurer's proposal still would have increased costs while shifting more expenses to employees.
District leaders said the new plan represents an approximately 11% increase over current costs, saving more than $400,000 compared with the negotiated renewal offer. Officials also said the district plans to explore becoming self-funded for employee health insurance in future years.
The board also heard an update on summer construction and maintenance projects across the district.
Among the largest projects is work at Amanda Arnold Elementary School, where classrooms and restrooms are being renovated, kindergarten restrooms are being added, new rooftop HVAC units have arrived, and cafeteria acoustics have been improved. Additional work is underway at Anthony Middle School, Lee Elementary, Marlatt Elementary, Lincoln Education Center, Woodrow Wilson Elementary and Manhattan High School.
At Manhattan High, crews are completing a new livestream laboratory for career and technical education students and installing an industrial arts spray booth. Officials said an unexpected underground electrical line required modifications to the spray booth foundation but is not expected to delay the project significantly.
The board separately approved a $45,000 engineering contract for HVAC replacement at Bluemont Elementary School, authorized the purchase of a maintenance pickup truck, approved annual warehouse supply bids and adopted revisions on first reading to the district's emergency drill policy to comply with recent changes in state law.
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This story was originally published July 17, 2026 at 1:16 PM.