Installment 4: Different Funds, Different Purposes

In the previous installment, I explained where Lawson R-XIV's revenue comes from and how local property taxes support the district. The next important piece is understanding how those dollars are used and why money available for one purpose cannot always be used to meet another need.

The district must account for every dollar, use taxpayer resources as intended, and make financial decisions that put Lawson in the best possible position for the future.

Operating Funds Supporting Students Each Day

Funds 1 and 2 support staff salaries and benefits, classroom programs, student services, transportation, utilities, insurance, technology, supplies, and facility maintenance.

For 2026-2027, Lawson has budgeted approximately $14.76 million in operating expenditures. Salaries and employee benefits account for about 74.8% of that amount.

Public education is a people-centered service. Our educators and support staff (including teachers, paraprofessionals, bus drivers, custodians, food-service employees, secretaries, counselors, nurses, administrators, and others) provide the instruction, transportation, supervision, services, and support students need each day. Most operating expenses recur annually, so ongoing revenue must keep pace with rising costs.

Debt Service Meeting Commitments to Taxpayers

Fund 3 repays voter-approved bonds. These dollars cannot simply be redirected to salaries, classroom programs, or other operational expenses.

• $1.16 million for scheduled principal and interest payments

• $350,000 for an additional principal payment

• $1.51 million in total debt-service expenditures

The additional payment is supported by available resources within Fund 3. Paying principal early reduces future interest costs and helps protect the operating budget from additional pressure.

Capital Projects: Maintaining and Improving Facilities

Fund 4 supports capital projects, major equipment purchases, and facility improvements. These are generally larger, long-term investments rather than recurring operating expenses.

The 2026-2027 budget includes approximately $2.422 million in capital-project expenditures: $2 million from the April 2026 no-tax-rate-increase bond issue and $422,000 from existing Fund 4 reserves. These resources support the agriculture learning lab, paving, HVAC work, and other long-term facility needs.

Over the past three years, Lawson has not transferred operating dollars into Fund 4. Strategic investment of existing reserves has generated earnings that helped fund facility improvements and address deferred maintenance without drawing additional dollars away from educators and support staff, classroom programs, or daily student services.

Investment earnings, bond proceeds, capital reserves, and property-sale proceeds are valuable but limited resources. They can support projects and equipment, but they cannot sustainably fund recurring expenses such as salaries, benefits, transportation, utilities, or instructional programs. Once a one-time resource is spent, it is not available to support the following year.

Fund 6 Separately Tracking Designated Dollars

Fund 6 is part of the district's operational financial records, but Lawson accounts for these dollars separately so they are not confused with resources available for general operations.

• $300,000 connected to student organizations, clubs, activities, and teams

• $200,000 in premiums paid by retirees who continue participating in the district health insurance plan

Student activity dollars remain connected to the groups that raised or received them, while retiree payments cover continued insurance. Separate tracking provides transparency and a more accurate picture of resources supporting daily district operations.

Maintaining a Consistent Total Tax Rate

Missouri's tax-rate calculation, including the Hancock Amendment, considers changes in assessed valuation and inflation. For 2026-2027, inflationary pressures and a decline in assessed valuation allowed the operating levy to increase by $0.0951.

The Board voluntarily reduced the debt-service levy by the same $0.0951, maintaining the total tax rate at $4.7573. This directed more of the existing levy toward current operational needs while continuing to meet debt-service obligations and avoiding an overall tax-rate increase.

The Bottom Line

The district's total revenue is not one unrestricted pool of money. Different dollars carry different responsibilities, and only a portion is available to sustain daily operations.

Lawson's financial position reflects careful planning, responsible debt management, strategic investment of reserves, and a commitment to use every available dollar wisely. These efforts have helped improve facilities, address deferred maintenance, expand student opportunities, and protect operating dollars for the people and programs serving students each day.

Those strengths do not eliminate the growing pressure on the operating budget, but they provide a stronger foundation for planning.

In the next installment, I will examine the costs that continue to rise, how they affect Lawson's long-range financial projections, and why it is important to plan before reserves are significantly reduced.

Michael Stephenson

Superintendent of Schools
Lawson R-XIV School District