KSD may seek larger levy to offset potential state cuts

KELLOGG – The Kellogg School Board held a special workshop earlier this week to discuss options for replacing its two-year supplemental levy. 

Supplemental levies have become essential to public school funding in Idaho, with 91 of the state’s 115 districts relying on them to fill gaps left by state funding. The Kellogg School District (KSD) is no exception. 

Locally, levy dollars support a wide range of needs, including utilities, extracurricular activities, classroom supplies, technology, curriculum materials, classroom support, transportation, custodial services, ancillary activities, facilities, full-day kindergarten, and the district nurse. 

However, the levy proposed for this November could be significantly larger than in previous years. 

During Wednesday night’s workshop, board members expressed concern over recent statements from state officials, prompting them to consider a higher levy amount. 

According to a recent report from the Idaho Statesman, Lori Wolff, administrator of the Idaho Division of Financial Management, issued a memo in May warning agency directors that state tax revenues were falling short of projections. She advised them to prepare for budget holdbacks of up to 6%. 

Wolff also recommended that agencies relying on general fund dollars limit themselves to “maintenance spending”—which, for education, includes honoring existing contracts, paying staff, and keeping buildings operational. 

KSD Business Manager Danielle Estill reported that the district’s projected state revenue for fiscal year 2026 is $9,432,505. A 6% holdback would mean a loss of nearly $567,000. With rising costs and a 31% inflation rate, board members agreed that such a loss would be unsustainable. 

Trustee Bonnie Farmin recommended maintaining the current levy rate but adding the 6% buffer to offset potential cuts at the state level. 

For the past two levies, taxpayers have paid $215.37 per $100,000 of assessed property value, funding $2.95 million annually. Farmin’s proposal would raise that amount by $21.80, bringing the total to $3,524,350 per year. 

“We don’t have any extra funds that would supplement that,” Farmin said. “We run as thin as we can and still provide a quality education for our kids.” 

Trustee John Schroeder noted that if the state’s financial situation improves, the district could choose not to collect the additional funds and accept only what’s needed for the annual budget. 

Board Chair Alexa Griffin voiced concern about how the potential loss of state funding is communicated to voters. 

“On the ballot itself, we can justify line items that tell people specifically what the money is going towards,” Griffin said. “The problem is, we can’t say that the state is holding back potentially 6% of our funding. So, we need to make sure we’re communicating and being forward about that.” 

Due to shifting property values, the district could run the levy without increasing the amount taxpayers pay, which would cover about 2.5% of the potential 6% shortfall. However, that would still leave a $324,000 annual gap, forcing the district to make cuts. 

To meet all of the requirements to get any measure on the November ballot, the board will need to make its decision by their next monthly meeting, which is scheduled for Tuesday, August 12.