The Olathe Public Schools Board of Education has initiated discussions on the fiscal year 2026 budget, revealing a proposed budget increase of approximately $3 million, despite earlier reports suggesting a $12 million rise. This budget will be formally presented for adoption on September 4, 2025, following a notice of hearing to exceed the revenue neutral rate.

Key highlights from the budget review include a projected decline in student enrollment, with an anticipated reduction of about 184 full-time equivalent students, bringing the total to approximately 27,248. This decline is expected to impact funding, although a 5% growth assumption has been included to account for potential increases in open enrollment.

The budget reflects a 5.9% increase in assessed valuation compared to last year, with base aid per pupil rising by $237 to $5,615. However, the district faces challenges as special education reimbursements are projected to decline from $30,815 to $29,600 per teacher, despite rising costs in special education across the state.

The board has also noted a significant loss of state aid for bond and interest, totaling around $3 million, and $1.5 million for capital outlay, due to the district's average home prices exceeding the state median. This loss was confirmed during the budget planning process in May and June.

In terms of levies, the general levy remains statutorily set at 20 mills, while the local option budget has seen a slight increase. The capital outlay levy is proposed at 8 mills, with a decrease in the bond and interest levy to 0.222 mills. Overall, the total levy is expected to decrease by approximately 1.3 mills.

The board emphasized its commitment to maximizing available funding authorities to support the budget, ensuring that all levies are set at their maximum allowable levels. The proposed tax bill for patrons will reflect these changes, with an overall decrease of about 2% compared to the previous year.

As the district navigates these financial challenges, the upcoming hearing will provide an opportunity for community input on the proposed budget and levies, shaping the future of Olathe Public Schools.