Lawrence Public Schools (Shutterstock photo)

Administrators with the Lawrence school district said planning for next school year’s budget could come down to two choices: budget cuts or tax increases.

If the district’s property tax rate were increased, it would be the second year in a row Lawrence property owners would see such a hike. Administrators, though, are approaching upcoming budget decisions with caution.

“It’s the question of what’s the least painful and what’s politically possible,” Superintendent Rick Doll told members of the district’s Finance Advisory Council at its meeting Thursday. “And that politically possible piece is important.”

The Finance Advisory Council was established in 2012 to provide feedback on finance and budget issues to district representatives and school board members. The council is made up of about a dozen people, including school board President Vanessa Sanburn, district administrators and members of the community. Doll asked the community members present — Bob Byers, Alee Phillips and Chris Souders — if they thought the public would support a tax increase.

“I think as long as they understand that it’s really about education,” said Byers, who is also a former school board member. “It’s not that much.”

The potential increase would up the district’s tax rate by 2.4 mills. For the owner of a home valued at $160,000, that would mean $44 more per year than under the current tax rate. Taxes are levied on 11.5 percent of a home’s assessed property value, and one mill is equivalent to $1 for every $1,000 of that value.

The 2.4 mill increase would generate about $1.7 million to help avoid substantial cuts for next school year. After block grants essentially froze state funding levels last school year, the district made some changes, such as reducing administrative positions and custodial staff. Without additional funding, cuts that affect classroom size and programming are possible, said Kyle Hayden, assistant superintendent of business and operations.

“Really, folks, you’re down to people and positions,” said Hayden, who will replace Doll as superintendent beginning in July.

At the same time, administrators made clear the 2.4 mill tax increase is not a guaranteed option. The possibility of increasing the tax rate by that amount stems from a provision in the school funding bill signed earlier this month by Gov. Sam Brownback. The provision allows districts that lose aid for their local option budgets to raise local property taxes to make up the difference. The state’s funding formula is under review by the Kansas Supreme Court, and some critics of the bill think it is likely the court will find that provision unconstitutional.

Oral arguments in the school funding case are scheduled for May 10. Despite the financial uncertainty, Hayden said, the district has to start budget planning based on the bill as it is now.

“This could be what we are working with for next year, but it could change,” Hayden said.

In addition to the Supreme Court’s ruling, projected increases in the district’s enrollment and the possibility of additional cuts to public education funding could further affect the district’s budget planning. Earlier in the day Thursday, one of the options laid out by the Brownback administration for dealing with the state’s budget shortfall was a 3 percent cut in funding for public schools.

“That’s in addition to anything that we’re talking about here,” Doll said of the potential cuts.

Thursday’s council meeting was the first to discuss the district’s budget. Feedback from the council will inform decisions made by the board’s budget committee, which will submit a budget proposal to the board in July. At the close of Thursday’s meeting, Doll urged council members to talk with the community about the budget decisions facing the district.

“Engage your colleagues and neighbors in conversations about it,” Doll said. “I think that’s another part of what you do. In a real, real simple way, we can’t continue to spend more than we take in.”

The next meeting of the council is 4 p.m. May 19 at district offices, 110 McDonald Drive.