Olathe school budget looks bleaker, cutting $28.6 million, eliminating 140 more jobs
The Olathe school district is facing a larger budget deficit than originally announced, as officials now look to cut $28.6 million next school year, including 140 more job eliminations.
Last month, officials said that due to declining enrollment and other challenges, the district would need to cut more than $20 million for the next school year. They announced the closure of the district’s virtual school. Reductions in department budgets were expected across the board. Library clerk positions — about 15 total at middle and high schools — as well as kindergarten aides and some other aide positions would be cut.
But at a budget hearing Wednesday evening, families got a clearer picture. In addition to the job eliminations already reported, officials said they would cut 140 certified staff positions by not replacing the jobs of employees who are retiring or leaving the district. Officials previously said they would look to solve much of the shortfall through attrition as employees leave the district, but did not say how many positions would be eliminated.
Staff cuts could result in increased class sizes in some cases, although Deputy Superintendent John Hutchison said classes will not exceed the district’s current standards.
Olathe also will reduce half of the funding for its 21st Century Academies, 15 four-year programs that teach high schoolers skills for post-secondary and career opportunities.
He said about $1.5 million will be cut from district and building administration. Several parents have argued that the district should focus more cuts on administrator salaries rather than eliminating lower-paid employees. But Hutchison argued Olathe already has a lower administrative cost per pupil than most surrounding districts.
“Please know none of this is easy,” Hutchison said. “I have two daughters who teach in this system. My kids went to this system. I moved here 15 years ago and absolutely love Olathe. So I’ve spent a lot of sleepless nights to try to figure out how to be the knight in shining armor and come up with a solution. But it’s all sitting in compensation.”
Olathe isn’t the only district facing a budget deficit next school year.
Also in Johnson County, the Gardner Edgerton district is expecting a $3.5 million shortfall, mostly due to declining enrollment during the pandemic. And a Blue Valley spokeswoman said, “we are seeing an increase in budget pressure resulting from the pandemic. At this point, the district is looking closely at the budget forecast and any need to manage a future budget shortfall.”
But Hutchison said that Olathe is also dealing with several unique challenges.
“Typically for a budget our size, one of these items would cause no concern. But combined, it creates a bit of a perfect storm for us,” Hutchison said. “And we’re not alone. Other districts are having budget challenges. But granted, ours is much more complicated because we had all of these factors hit all at once. If COVID had not hit, we wouldn’t be here tonight.”
The shortfall is partly due to declining enrollment during the pandemic. Olathe has seen continual enrollment growth since the 1960s. But that growth has started to slow down, and during the pandemic the district reported a drop in enrollment for the first time.
In 2019, the district’s enrollment peaked at 30,299 students, according to its annual September headcount. But enrollment fell by more than 1,000 students in 2020, to 29,244. This past fall, the district recovered about half of those students. If the district does not see enrollment growth next year, Hutchison expects the district would lose $6.3 million in funding.
But Olathe also is not growing like it used to, and as a result is no longer building new schools. That means the district also will lose additional property tax dollars allocated to new schools in expanding districts. The state board of tax appeals may authorize a growing school district to make a property tax mill levy to fund new building operations, money that tapers off over several years and will eventually run out.
“Before COVID hit, I’m telling you we did see some of it coming. For several years, I stood at a podium at board meetings explaining (board of tax appeals dollars are) going to go away. We’re not growing the way we were. We’re not opening new buildings,” Hutchison said.
He listed several other issues, including an increase in special education students, a greater challenge due to current state funding levels. Johnson County districts and educators across the state have pleaded with Kansas lawmakers to increase special education funding to the level required by state law, a move that Olathe expects would result in $15 million more for the district.
Hutchison also said that the district lost money operating Olathe Virtual School in its first year, leading to the decision to close it this coming fall. He said the school served more than 300 students, fewer than expected. After investing $3.2 million in the program, he said it lost $2.7 million, making it unsustainable. That decision has been met with criticism from several parents, who argue their students are being left behind without the virtual option.
While the district’s budget deficit is determined for next school year, Hutchison said officials in the coming years will need to evaluate other areas for potential reductions or realignments. He said the district will study middle school program adjustments, changing bell times to save on transportation costs, high school elective offerings and how to reduce costs in the special education program.
