Not only is the state still tardy with $103 million in school-finance payments, it appeared increasingly likely Friday that districts won’t receive the $20 increase in per-student aid promised by the Kansas Legislature.

Lagging state revenues forced postponement of the final allocation of public school funding until Wednesday  after the current fiscal year ends Sunday.

The delay forced some Lawrence-area districts to juggle accounts and delay payrolls.

“We’ll be holding the lump-sum paychecks,” said Baldwin Supt. Jim White. “We can’t issue those until July 3.”

Baldwin’s share of the state’s late school-finance payments is $283,000. Tonganoxie was shorted $235,000, while Oskaloosa did without $138,000.

The Lawrence school district has drawn from reserve funds to keep paychecks rolling despite getting stiffed for $1.3 million.

All state funding owed the 303 public school districts should be in their accounts before the Fourth of July, said Elaine Frisbie, an analyst for the state’s budget division.

She said the state’s cash-flow problems were tied to flagging revenue collections. The problems held up school-finance payments five times this fiscal year.

More bad news

And the news got worse Friday.

State officials said tax collections fell $21.2 million short of estimates in June, widening Kansas’ total shortfall for the fiscal year to more than $210 million.

Preliminary figures show Kansas will start the new budget cycle well below the revenue levels a group of economists and researchers predicted in March.

But state officials had expected a shortfall of about $200 million, and the preliminary figures released Friday didn’t take into account interest earnings, agency earnings and transfers.

“The news isn’t as bad as it might have been,” said State Budget Director Duane Goossen.

Rep. Rocky Nichols, D-Topeka, a member of the House Appropriations Committee, disagreed with Goossen’s assessment. Like other Democrats, Nichols blames some of the state’s financial problems on fiscal mismanagement by the Republican administration of Gov. Bill Graves.

“It has now blown an equally devastating hole in the budget, requiring huge cuts in needed services,” Nichols said.

Legally, the state had to defer school aid payments this time to comply with a requirement that the general fund have a positive balance at the end of the fiscal year  June 30.

“If that means delaying education payments  it’s not something we like to do  but we have to keep the budget in the black,” said Kristin Heuertz, a spokeswoman for Graves.

A deep hole

Some officials say it’s possible tax collections for the just-ending 2002 budget year could end up $225 million below expectations. That’s a deep hole from which to climb in the 2003 fiscal year, and raises the possibility districts won’t receive an $11 million increase in aid approved by the Legislature and Gov. Bill Graves.

Lawrence Supt. Randy Weseman said the state’s financial situation was dire enough that it was doubtful the $20 per-pupil increase, to $3,890, would become reality.

“I’m pretty sure we’re not going to get that,” he said.

If his prediction holds true, it would cost the Lawrence district $290,000.

White, superintendent in Baldwin, said he shared Weseman’s skepticism.

“At this point,” he said, “we have little hope that we’ll see any of that.”

He said the Legislature should look at its own study of school finance in Kansas. That report said millions of dollars should be infused into public schools.

“At what point do we bite the bullet and say schools and public education in Kansas is important and we need to do what it takes to fund it properly?” White said.

In the state budget office, Frisbie said it was premature to determine the fate of the $20 increase.

“Nobody knows what revenues will be,” said Frisbee, who added a cautionary remark. “I would think schools would be wise to really manage their money.”

Several area school district administrators, while not happy about the funding delay, were getting by without much difficulty.

Steve Johnston, superintendent of the Perry-Lecompton district, said the district had met all its obligations for the 2001-2002 budget year.

“It’s not creating an issue for us,” he said. “Our cash flow is fine.”

Doug Schwinn, business manger in the Oskaloosa district, said the late arrival of $138,000 from the state didn’t force any changes in management of the district.