The state's 10-member education board got an update on the declining Kansas revenue picture and the prospect for further cuts for Kansas schools Tuesday.

The board's meeting Tuesday was the first since a group of economists and policymakers slashed the Kansas revenue outlook by $235 million for the remainder of the fiscal year, which ends June 30, 2010.

"The schools have cut all the fat there is," said state Deputy Education Commissioner Dale Dennis. "There is no more fat whatsoever left. Now we're into cutting muscle. So we've got a lot of studies that shows the additional funding that was put into effect a couple years ago had a direct correlation to increased student achievement."

Kansas schools have already seen reductions in per-pupil spending for the current year and it is expected that Gov. Mark Parkinson will have to make deeper cuts to balance the state budget in the coming weeks.

Several groups have called for Kansas legislators to increase taxes, including a commission appointed to recommend ongoing changes in school policy, but at least one policy watchdog adviser say a tax increase to fund schools in Kansas isn't necessary.

"Schools have at their disposal as of July 1 at least $699 million of cash reserves that they have built up over the years because they have spent less than they have received," said Dave Trabert, president of the Kansas Policy Institute. "They have access to that money today."

The state has been able to offset some cuts because of federal stimulus money received from the federal government, but that only lasts one more year. Once that money stops coming in, the board says the cuts forecast now are only a drop in the bucket compared to what will happen after that money is gone.

State law currently mandates that the legislature fund roughly $4,500 per pupil in Kansas. Dennis, the board member, says the state has already fallen below that amount over the last couple of years.