State and local funding for general operating budgets for Kansas public schools will be at a five-year low this school year, yet total Kansas school district spending will reach an all-time high of $5.67 billion according to estimates released by the Kansas State Department of Education. Total per pupil spending is projected to reach $12,454 per full-time equivalent pupil, an increase of $171 over last year. The rise in total funding is due to a $155 million increase in state retirement contributions, equaling a $339 per pupil increase. Total district spending is expected to be slightly higher than in 2009. That was the final year of funding increases following the Montoy school finance lawsuit and before a deep recession led to state spending cuts. This report, prepared by the Kansas Association of School Boards, examines why--in spite of overall spending increases by the state--boards of education and administrators have been forced to reduce budgets and cut staff and programs for students.