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Efficiency Consultants: Take Money from Cash Reserves of Kansas School Districts

TOPEKA, Kan. (AP) — A consulting firm being paid $2.6 million by the Kansas Legislature to review the state's budget says taking money from school districts' cash reserves could help pay for future education funding. Alvarez & Marsal released a 292-page final report to lawmakers on Tuesday, describing efficiencies the firm says could save the state $2 billion over the next five years. One of the recommendations is to require school districts to have a minimum cash balance of 10 percent of their operating budget, with a maximum of 15 percent. The Wichita Eagle reports any reserves over 15 percent would be deducted from future funding. Alvarez estimates the policy would save $193 million over five years and suggests lawmakers implement it for the next fiscal year, which begins in July.

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