BY ANDY TAYLOR
Montgomery County Chronicle

CANEY — The tax status of the Caney Early Care and Education Center, which closed its doors last Friday, is a key issue in determining whether USD 436 will make an offer to lease the property, school board members said Monday.

At the USD 436 Board of Education monthly meeting on Monday, Superintendent Danny Fulton informed the board that he had received an offer from the Washington County Child Care Foundation to use the facility, which was built in 2004, on a lease basis. The foundation had been operating the facility on behalf of the Delaware Tribe of Oklahoma. The facility closed its program on Dec. 5 due to funding shortfalls. However, the foundation will continue to operate a preschool for 4-year-old youths for the remainder of the 2008-09 school year.

Fulton said that school board had made it a goal to expand its preschool offerings in USD 436 and that the facility may be a prime location to expand its early care education program.

However, he said one issue that could determine the cost effectiveness of leasing the facility is whether the property can receive a tax-exempt status by the State of Kansas. Currently, the facility is not considered tax-exempt, and Fulton said the annual property taxes amount to more than $24,000.

“That facility is classified at the highest property tax rate in Kansas: 33 percent,” he said. “That makes it rather cost prohibitive if we have to pay that kind of tax.”

Fulton presented a draft report showing anticipated costs if USD 436 were to locate its current At-Risk Preschool at the site and create a new program for regular preschool-aged pupils. The estimated costs will be about $142,000 with revenue amounting to $91,850. That would leave a positive difference of about $50,000, Fulton said.

Emphasizing that the cost/revenue figures were only estimates, he said one of the goals of expanding the preschool in USD 436 would be to generate more enrollment in local schools for the long-term future.

“If we can get the facility at a very reasonable cost to us, we coud provide some great opportunities for early child education in our school district,” said Fulton, adding that another goal would be to create a daycare for school employees to leave their children during school hours.

However, obtaining the facility through a lease contract will hinge on whether the property can receive a property tax abatement because of its use as a non-profit educational center, Fulton said.

“I would liek to see that in writing before we sign any contract,” said board member Jack Kopfman about the tax status.

The Washington County Child Care Foundation would have to seek the non-profit tax status on behalf of the lessee, which, in this case, would be USD 436, Fulton said.

More details about the tax status and other plans for the facility will be discussed at the school board’s January meeting, which is planned for Monday, Jan. 12.