The Lincoln Public Schools (LPS) Board of Education voted Tuesday to approve a 4.97% increase in their 2024-25 budget totaling over $539 million.
The largest bulk of the spending increase (about $18.6 million) will go towards salary and benefit increases already approved through the staff negotiation process earlier in the year. Staff salaries and benefits make up almost 90% of the total budget. LPS payrolls more than 6,500 employees each month.
Additionally, the Board voted to increase the district’s property tax levy by 3.9 cents, to an approximate total of $1.10 per 100 of valuation. LPS says this increase will help offset the a roughly $32 million decrease in state aid to the district. The drop in state aid this year is calculated to equal a levy of 9 cents.
“The state has cut our aid by more than half in the last six years, from $146 million to $72 million in six years. If it had kept pace with inflation, our levy would be at least $20 to $0.30 lower by now,” said Board Chair Dr. Bob Rauner. “The state is balancing it’s budget by cutting our budget. So we have no choice because these things are contractually obligated to do that with property taxes. I think that’s the fundamental problem that most taxpayers don’t understand.”
On average, a homeowner with property valued at $281,614 would see a $110 increase in their property taxes.
This year’s property tax bump comes after the Board approved a 14 cent drop in the total levy to $1.07 per 100 of valuation.
“Our legislature and governor put us in a really, really hard position, and the way we assess property puts us in a really hard position,” said Board Member Annie Mumgaard.
A new law (LB 243) passed by the Nebraska Legislature last year limits year-over-year growth of a public school district’s property tax request to three percent plus other growth factors. Because LPS enrollment exceeds 10,000 students, the district may exceed the base growth percentage by an additional four percent with a 70 percent approval vote by the Board of Education. This increase will offset the dollars lost by the decrease in state funding, equaling 1.11% increase in the total general fund revenue budget for LPS.
The Board voted 5-1 to approve the 2024-2025 budget, property tax request, and base growth percentage increase, respectively.