State revenue shortfalls threaten to shortchange Kansas public school districts in June, a crucial month because districts have unusually large payroll obligations as they cover teacher paychecks for the summer months.

Lawrence school officials said Tuesday the district needs $6 million to meet payroll in June.

But if state revenue continues to fall below expectations and state officials don’t have cash to make school-finance payments to districts, a $3.5 million allocation to the Lawrence district may not arrive as scheduled Monday.

“Chances are that we will not get 100 percent at that time,” said Kathy Johnson, the Lawrence district’s budget director. “The hope is that the balance would come at the end of June.”

Johnson said officials with the Kansas State Department of Education are warning districts it is possible no more than three-fourths of each district’s payment will arrive on time.

If that occurred, the Lawrence district would have to dip into its contingency fund or other internal accounts to meet June payroll for teachers and staff. The payroll burden is larger in June because districts must deal with compensation due teachers for June, July and August.

“June is when it all comes to head,” Johnson said. “Districts will be in a real pickle if the state can’t make these payments.”

Dipping into reserve accounts puts school district officials on edge, Supt. Randy Weseman said.

He said lack of a rainy-day fund would limit the Lawrence district’s options if state revenues continued to decline in the 2002-2003 school year.

Ramifications of running out of money are unknown, Weseman said, but the district could impose a hiring freeze, lay off employees not on contract or halt purchases of goods and services.

The state shorted the 304 Kansas public school districts on education-finance payments four times in the 2001-2002 fiscal year.

Though late in arriving, all that money has ultimately been received by the districts.

Weseman said district administrators were being warned by the Department of Education that state revenue woes also could undermine the Legislature’s effort to bolster school financing.

He said contingency plans should be drawn up in anticipation of the state abandoning plans to add $20 to per-pupil state aid sent to districts next fiscal year. To cover the increase in state aid to $3,890, the state needs $12 million. The increase amounts to less than $300,000 for Lawrence schools.

“I assume we have to make adjustments,” Weseman said.

The district just completed a budget-review process that reduced spending and raised fees to allow for a 5 percent increase in employee salaries and benefits.

Weseman intends to speak with the Lawrence school board Monday about options for keeping the budget balanced.