Finance

North Kansas City Schools' Finance Department is firmly committed to responsible fiscal management, transparent and quality reporting, and exceptional customer service. This team handles all financial obligations of the district, including publication of the annual budget and other reports, payroll and accounting.

The primary objective of NKC Schools’ financial planning efforts is to ensure that North Kansas City Schools has the requisite resources to serve as relentless champions for our more than 21,800 students. This encompasses the construction of new facilities to accommodate growing enrollment, the provision of equitable facilities throughout the district, and the recruitment and retention of high-quality staff. Read more about North Kansas City Schools’ priorities in the 2022-2027 Strategic Plan. By responsibly managing taxpayer funds and maintaining a balanced budget, we can offer the innovative educational experiences our students truly deserve.

We believe in the importance of keeping our patrons informed about how the district is funded and how we allocate our resources. Several documents are posted here for the public to access, and the charts below highlight key aspects of district funding.

Revenue & Expenses

Check out our Finance At A Glance page to see a chart showing where each funding category originates and what types of expenses it is used for.

Funding

The district's revenue comes from several different sources, including local, state and federal levels.

Major sources are detailed below.

Note: Figures are for fiscal year 2024 based on the Final September 2023-2024 Budget.

Pie chart representing numbers explained for funding sources

Local Operating Revenue

64.7% of total revenue

$187.0 million (75.4% of Local Operating Revenue) – Property Tax Revenue: Local personal property tax paid by residents and commercial property owners within district boundaries including delinquent tax, financial institution tax, M&M Sur Tax and payments made In-Lieu of Tax. ($5.6157 per $100 of assessed valuation)

$32.6 million (15.6% of Local Operating Revenue) – Prop “C” Sales Tax Revenue: A statewide sales tax approved by voters distributed by the state to districts based on weighted average daily attendance.

State Operating Revenue

25.7% of total revenue

$92.3 million (79.3% of State Operating Revenue) – State Foundation Formula Revenue: Missouri funds school districts based on the Foundation Formula (detailed in SB 727), which takes into account average daily attendance, the state adequacy target, the district dollar value modifier, the district’s local effort from 2004-05, and and other factors including student demographics.

$10.6 million (9.1% of State Operating Revenue) – State Transportation Aid: State transportation aid provides funds to districts based on allowable miles and costs incurred for transporting students to and from school.

Federal Funding

8.1% of total revenue

$23.7 million – Federal Funding: Grants and funding distributed to schools from the federal government to support specific programs, including special education and food service.

Tax Rate

NKC Schools’ local tax revenue comes from the tax rate set by the district’s Board of Education. This tax is applied to the total value of all property in the district, as assessed by the County assessors of Clay and Platte counties. The total taxable property value in fiscal year 2024 was $3,442,038,703, which is $85.5 million more than last year, a 2.6% increase. The increase is due to new construction within the district. County Assessors reassess property values every two years, as required by Missouri law, and 2024 was a non-reassessment year.

Tax Rate History
North Kansas City School District No. 74

Graph showing tax rate history (overall downward trend from 2014-15 to current year)

The Board of Education must set the tax rates for each fund every year. The Missouri State Auditor’s office provides a formula to calculate these rates, considering the current and previous year’s property values, changes in the Consumer Price Index (CPI), the previous year’s tax rate ceiling, and any voter-approved tax increases. The CPI change for the year ending in December 2023 was 3.4%, down from the previous year’s 6.5%.

Our current tax rate is almost 1% lower than it was ten years ago.

While inflation increased during the COVID-19 pandemic, NKC Schools' tax rate decreased overall.

Tax Rate vs. Consumer Price Index (CPI)
North Kansas City School District No. 74

Graph showing tax rate (as described above) vs. CPI, which has fluctuated over time

In Missouri, the Hancock Amendment limits the amount of increased property value that school districts can capture via tax. When property values increase, especially by a significant amount, school districts are limited in how much of this increased funding they can receive. The Hancock Amendment limits the district’s operating revenue increase to either the CPI (a measure of inflation) or 5%, whichever is lower. In December 2023, inflation was measured at 3.4% (CPI). The Hancock Amendment helps residents avoid sudden tax increases, but can cause school districts to have to pay higher prices due to inflation without a corresponding increase in revenue. This limitation does not affect the debt service levy, which is calculated separately to ensure sufficient funds to service the district’s debt payments.

Expenses

The district's expenses can be grouped into four categories. As a service-centered organization, salaries and benefits represent the largest portion of our expenditures.

Note: Figures are for fiscal year 2024 based on the Final September 2023-2024 Budget.

Pie chart to visually represent figures and data explained below

Salaries & Benefits

$271.8 million – 74.8%

Wages paid to district staff members and costs of employee benefits and retirement contributions.

Purchased Services

$46.4 million – 12.9%

Property, liability and workers’ compensation insurance premiums, as well as professional services like development and training rendered by firms, individuals, and organizations.

Materials, Supplies & Equipment

$23.1 million – 6.4%

Classroom and school supplies, equipment, and other general supply costs.

Capital Outlay

$21.5 million – 5.9%

Building maintenance, furniture, and equipment including instructional equipment, technology and replacement school buses.

Bonds & Building

Strong fiscal management allows North Kansas City Schools to issue bonds to fund projects that would be too large for our normal budget – namely, new school buildings and renovations. Reinvesting in older facilities and accommodating growth are two priorities set by the Board of Education. The district’s current Long-Range Facility Plan outlined several phases of construction and improvements to occur. This work began with the passage of a bond issue in 2016 and continued with voter-approved bonds issued in 2020 and 2022. All three bonds resulted in zero tax increase for district residents. We greatly appreciate the community’s support that makes it possible for all students to learn in world-class school facilities. See the breakdown of major projects and plans on the Facility Planning section of our website.

Sale of Bonds: 2022 Election

On April 5, 2022, the voters of the North Kansas City School District approved a resolution to issue $140 million in zero-tax-increase bonds to build new and update aging facilities, many of which are more than 60 years old, to provide facility equity across the district, to provide a place for Pre-K learners, and to perform facility maintenance and to ensure safety and security for all students. Bonds were issued during fiscal year 2023 and construction is anticipated to continue throughout the 2024-2025 budget year.