LPS board proposes $512 million budget, with 13-cent property tax levy drop

LINCOLN, Neb. (KLKN) – On Tuesday, the Lincoln Public Schools Board of Education rolled out the preliminary budget for the 2023-24 school year.

It proposes a 4.8% increase from last year to $512 million.

Two main factors played a role in coming up with the new budget.

“The biggest changes with our budget this year is the significant changes in the state laws that regulate how schools are funded and the historic valuation increase for Lincoln Public Schools District,” LPS board Finance Chair Kathy Danek said. “Our evaluations went up about 22%.”

But the new budget would drop the tax levy by 13 cents, down to $1.08 per $100 of valuation.

That means for a house valued at $275,000, you would pay $2,970 to LPS.

“The 13-cent drop in the property tax rate is the largest drop in the rate in a generation in the time that we’ve been on the board,” board President Lanny Boswell said. “We’ve seen that slow decline, fractions of a cent, fractions of a cent, but for the last 20 years, it’s just slowly worked its way down.”

The last comparable drop was in 1998.

One of the changes the Legislature made was increased special education funding.

Danek said it’s been largely up to the local school district to pick up the slack of the federal government.

About 50 years ago, the government passed a law saying that 40% of funding should come from federal, 40% from state and 20% from local, Danek said.

“Well, the state was doing pretty close to the 40%,” she said. “The federal government’s been way under 20. And so that left your local school district grappling with how to fund the needs of these special-education children.”

The new budget also includes an increase to account for opening Standing Bear High School and finishing both Lincoln Northwest High and Ada Robinson Elementary.

“During 2020-2021, we really held the line on the budget and kept it fairly flat because we were preparing and forecasting for opening new schools,” said Liz Standish, LPS associate superintendent of business affairs.

The way the proposed budget stands now is good news for taxpayers.

If it were to pass as is, you would pay less in taxes to the LPS, unless the county assessor raised the valuation of your home recently.

LPS hopes to get you involved in the budget process as soon as Wednesday, the first of four public forums:

• June 28, 5 p.m., in the Northeast High School cafeteria
• June 29, 5 p.m., in the East High School cafeteria
• July 11, 5 p.m., in the Southwest High School commons
• July 12, 5 p.m., in the North Star High School commons

You’re invited to provide feedback and ask questions on the budget.