Holton B.O.E. discusses LOB
Citing the need to keep up with what other school districts in northeast Kansas can offer students, Holton USD 336 Superintendent Bob Davies is proposing the district increase its local option budget (LOB) to keep Holton’s schools competitive without putting too much more of a burden on district taxpayers.
The LOB — also known as the supplemental general fund — was established in the 1990s to allow school districts to generate local funds to support district expenses with a local tax that can range up to 30 percent of the state general fund budget without school boards having to pass a resolution to increase it, Davies said.
Holton’s current LOB is set at 30 percent of the district’s operating budget, it has been reported. At the USD 336 Board of Education’s Jan. 11 meeting, Davies asked the board to consider a resolution to increase the district’s LOB, which, according to new state law, can be raised up to 33 percent.
The LOB was intended to be an option for school districts as a means of funding educational programs that would “personalize” those districts. But in recent years, districts have had to rely on the LOB as a source of funding for general operating expenses and other statutory commitments, it has been reported.
Davies noted that the LOB amount is figured by multiplying the approved LOB percentage by the total dollar amount generated by the general fund. All districts in Kansas are allowed to set their LOB up to 30 percent without a resolution — and with one, districts can go to 33 percent now, he added.
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