photo by: Matt Resnick/Journal World

Lawrence school board members listen intently during a presentation on Monday, Aug. 14, 2023. From left are board President Kelly Jones, Bob Byers and Shannon Kimball.

Despite an expected increase in operating revenue for the upcoming school year, the Lawrence school board opted to move forward with a budget that includes a slight hike in property tax rates.

At Monday night’s business meeting, the board set its maximum spending authority and mill levy for 2023-24.

The closure of two elementary schools and steady staffing reductions, coupled with other budget-cutting measures is adding millions to the district’s coffers this year. A $4 million increase from last year in K-12 education funding will further pad its cushion.

Cynde Frick, the district’s executive director of finance, delivered a presentation that provided an overview of budget funding. The proposed budget raises the mill levy from 51.070 to 52.229, with its maximum spending authority set at approximately $193 million; a roughly $34 million increase from last year. Under the proposal, a homeowner would pay roughly $64 more in taxes for a home valued at $250,000.

“If our revenues exceed expenditures, then our cash balance increases at the end of the year,” Frick explained, “which will decrease our mill levy rate.”

Frick said that the opposite holds true if the district were to spend more than it brings in.

“If we spend more, than our balance goes down and our mill levy goes up,” she said.

Board President Kelly Jones said that she was pleased with Frick’s presentation.

“I really appreciate how much attention you give to it,” Jones said, adding that it’s helpful preparation for the Sept. 11 budget hearing. “It’s particularly helpful in an election year for the community and candidates to talk about this, and have an opportunity to see a bit more detail around what goes into our budget.”

Because the board also elected to exceed the revenue-neutral rate for the 2023-24 school year, a hearing will also be held for that measure on Sept. 11.

In other business:

• The board approved by a 4-3 margin a tax incentive request made by First Management Inc. to redevelop the former Border’s building on New Hampshire Street. The Lawrence City Commission recently approved the incentives, while Douglas County commissioners are slated to hear the proposal at its Wednesday meeting.

Approving the measure were Jones, Shannon Kimball, Bob Byers and Ronald “G.R.” Gordon-Ross. Voting against were Erica Hill, Carole Cadue-Blackwood and Paula Vann.

Doug Compton, owner of First Management Inc., indicated on Monday that there was no downside to approving the 15-year, 65% property tax rebate. Compton told the board that the building has been vacant for the past 12 years, and that efforts to find a tenant have spurred litigation for him at every step.

As previously reported by the Journal-World, First Management ultimately plans to shift its 80 existing corporate employees from its North Lawrence facility to downtown.

After the vote, Hill said that she was left with more questions than answers.

Kimball explained that she was in favor of the incentives after determining that the rebates would not have “any negative impact on school funding.” She added that it would ultimately infuse the district’s Capital Outlay Fund with $100,000, and could have a “settling effect” on the district’s mill levy.

• The board approved initiation of an agreement with multiple law firms to investigate litigation against social media companies. According to the allegations, those companies engaged in the promotion of products that “attracted and addicted children.” The 5-2 vote was opposed by Hill and Vann. In favor were Jones, Byers, Kimball, Cadue-Blackwood, and Gordon-Ross.