Local Option Budget (LOB)

The largest locally financed fund is called the Local Option Budget, which is also sometimes referred to as the supplemental general fund. The idea behind this fund was to give districts the opportunity to supplement state funding for additional programs and services that would be determined by local school boards.

Unfortunately the state cuts to the general fund over the past several years have forced district to use the money generated by the LOB to help fill cuts in state general funds, rather than using it to supplement.

By law, a district’s LOB can equal only 30% of the General Fund without holding an election. Eudora has been at the maximum level of 30% for several years.

According to the state finance formula, the LOB is equalized with state aid to assist property-poor districts that are unable to raise as many mills as districts with greater property wealth.

In the spring of 2014, when the Kansas Legislature followed the orders from the Kansas Supreme Court to fully fund the LOB, most districts were already at the maximum 30%. In these districts, additional funding from the state allowed school boards to lower local property taxes. As a result, the Eudora board’s 2014-2015 budget reflected a nearly 7 mill drop in the overall mill rate.

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