SKACD director outlines interlocal structure, funding and $450,000 IRS debt

Jason Wright, executive director of the Southwest Kansas Area Cooperative District (SKACD), told the Dodge City Board of Education that SKACD is an interlocal school district serving 14 member districts across roughly 6,500 square miles and that its funding comes from state categorical aid, federal funds, Medicaid reimbursements and local assessments.

Wright said the cooperative’s budget for the year totals about $19.375 million and that roughly 61% of the students SKACD serves are in Dodge City schools. On the funding model he stressed: "We are not funded by the number of students. We are funded by the number of employees." He said state categorical aid provides approximately $30,000 per teacher/professional and creates about $7 million in revenue for SKACD.

Wright disclosed a significant fiscal pressure: "We do have about $450,000 of outstanding Internal Revenue Service debt," which he said dates back to 2017 and has accumulated interest. He told the board SKACD had projected a near-term deficit of about $600,000 and that the SKACD board authorized a supplemental spring assessment for Dodge City that generated roughly $320,000 in additional revenue for SKACD from USD 443.

Wright also described operational constraints — SKACD receives no revenue from June through October and must maintain reserves to meet payroll and other obligations — and said long-term budget stabilization and a plan to work with IRS revenue officers would be priorities.

Board members asked clarifying questions about the debt, the sustainability of the supplemental assessment, student counts (Wright cited 1,300 students served as of December), and risk if the IRS were to accelerate collection. Wright said the district had been in conversations with the IRS and was making small payments but had not made major progress contacting assigned revenue officers.

How this matters: SKACD’s fiscal condition affects member districts’ budgets and planning. The board heard the presentation and will consider the SKACD supplemental assessment and long-term budget stabilization at future meetings.