What is capital outlay?

Capital outlay is a dedicated fund used for major, long-term school improvements—such as building repairs, new buses, and technology upgrades. It’s separate from everyday operating expenses like teacher salaries or school supplies.

How does capital outlay work in USD 230?

USD 230 collects capital outlay funds through a special tax (mill levy), which is currently set at 8 mills. These funds allow the district to proactively maintain and improve school facilities without requiring frequent bond issues.

How does it help with maintenance?

Think of it like a home repair fund—if you save a little each year, you can handle repairs before they become expensive problems. Capital outlay helps USD 230 stay ahead of maintenance issues, such as:

Replacing aging HVAC systems
Repairing roofs
Updating classroom technology

Why didn’t the district always collect capital outlay funds?

There were years when:

Bond funds covered major projects, reducing the need for additional capital outlay.
The district prioritized other budget areas, such as staffing and daily operations.

No urgent repairs were needed, so the school board opted to reduce or suspend the levy.

Why is it back now?

With continued growth in the district, capital outlay funding is essential to ensure our schools remain in top condition. By keeping the 8-mill levy steady, USD 230 can:

Maintain existing facilities
Address wear-and-tear from increased enrollment
Avoid unexpected tax hikes in the future

This proactive approach ensures that our schools remain strong for years to come.

How are other districts handling the repairs of HVAC and roofs using capital outlays and bonds?

Many school districts across Kansas use bond issues to fund major infrastructure projects, including HVAC and roof repairs, as part of long-term facility maintenance and improvements. This approach allows districts to preserve capital outlay funds for other pressing needs while ensuring that critical building systems remain functional and up to date.

For example, several nearby districts have included similar projects in their bond issues:

Olathe's 2022 Bond Issue: Allocated $10 million for roofing and another $10 million for HVAC upgrades over five years.
Shawnee Mission's 2021 Bond Issue: Dedicated $19 million for roof replacements and $24 million for HVAC and lighting improvements.
Blue Valley's 2023 Bond Issue: Included districtwide replacement of HVAC equipment, along with roof, door, window, and wall repairs as needed.
Gardner and DeSoto: Recent bond issues in these districts have included items that other schools typically fund through capital outlay, such as safety and security upgrades, playgrounds, kitchen renovations, and educational technology.

This demonstrates a common and strategic practice among districts to use bond funding for large-scale infrastructure needs, allowing capital outlay dollars to be used for ongoing maintenance and other district priorities.

How and Why Do We Use Capital Outlay Dollars for Salaries and Benefits?

Using capital outlay dollars for salaries and benefits is a common practice across Johnson County school districts, specifically for custodial, maintenance, and buildings & grounds staff. This allows districts to maintain school facilities efficiently while preserving general fund dollars for classroom instruction and student programs.

Every district in the area allocates a portion of its capital outlay budget to support these critical positions. Here’s a look at the percentage of capital outlay spent on salaries and benefits (object codes 100-299) in recent years:

2022-2023

Blue Valley: 29%
Spring Hill: 33%
Gardner: 34%
DeSoto: 10%
Olathe: 38%
Shawnee Mission: 22%

2023-2024

Blue Valley: 36%
Spring Hill: 42%
Gardner: 25%
DeSoto: 18%
Olathe: 38%
Shawnee Mission: 24%

This funding approach ensures that schools remain safe, clean, and well-maintained without placing additional strain on the general operating budget. By leveraging capital outlay dollars in this way, districts can support essential personnel while maximizing resources for student learning.