The Kansas Statehouse in Topeka.

Changes made to the school funding formula by the Kansas Legislature may not add much money to the Lawrence school district’s overall budget, but local taxpayers will see a break.

The changes provide the Lawrence district more than $1.5 million in equalization aid, allowing for a 1.5 mill decrease in the district’s property tax rate. Lawmakers drew from multiple sources in order to fund the plan, including some that would have given a boost to general funding for the Lawrence district.

“Some of the possible increases of budget have been removed as part of this, but going forward it is an equitable and constitutional plan for the good of all of our students in the state,” said Kathy Johnson, the district’s director of finance.

State equalization aid is used to hold down property taxes in lower-wealth districts. The Kansas Supreme Court ruled in May that the way that aid was distributed was inequitable, and it gave the Legislature until the end of June to make changes or else risk closing schools.

The $1.5 million increase for the Lawrence district will allow the district to generate the same amount of money in its local option budget but with less local tax dollars.

“It’s new state aid to the school district, but not new budget authority,” Johnson said. “It will only be property tax relief.”

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 assessed value. Under the school district’s current tax rate, the owner of a home valued at $160,000 pays about $1,055 in property tax per year toward the district. The 1.5 mill decrease amounts to about $28 less per year for that owner.

The state funding changes essentially walk back reductions to equalization aid made by state lawmakers last year. Those reductions were part of the reason the Lawrence school board voted last summer to increase the school district’s property tax rate by 1.6 mills.

The funding changes do not affect the amount of state aid going toward the district’s general fund — one of its most flexible sources of revenue — which will remain at the same level as the current year. However, Johnson said that because the district is expecting an increase in student enrollment next school year, flat funding amounts to less funds to operate with.

“It’s a little bit difficult because we’re growing and we’re not receiving any new dollars to assist or help with the growth of enrollment in the district,” Johnson said.

The funding plan will result in some new money for the district. As part of the changes, the district will see an increase of $656,000 in state aid toward its capital outlay fund. Those funds can only be used for capital expenses, such as building, equipment and technology maintenance, as opposed to the district’s day-to-day operations, Johnson said.

In order to reinstate the equalization aid, legislators needed to generate about $38 million. A portion of that amount was generated through a $2.8 million reduction in state aid for virtual schools. That change cost the Lawrence school district nearly $640,000. Johnson said that reduction affects more than just virtual students.

“The funds generated from these enrolled students goes into the general operating budget that can be used for both virtual students and brick and mortar students,” Johnson explained.

On Tuesday, the Kansas Supreme Court said it was satisfied with the changes addressing school funding equity made by the Legislature. Lawmakers are expected to write a new school funding formula during the 2017 session. Meanwhile, the Supreme Court will review another element of the state’s funding formula dealing with adequacy.

“I think we’re just happy that schools aren’t being closed and we can at least move ahead and see what the next step is,” Johnson said.

The Lawrence school board will announce its budget proposal for the upcoming school year on July 25.