LPS board inches closer to vote on proposed property tax increase

LINCOLN, Neb. (KLKN) – The Lincoln Public Schools board heard from community members on the district’s proposed budget Monday night.

LPS plans to increase its budget by more than $25 million for the 2024-25 school year.

That would bring the total budget to more than half a billion dollars.

A majority of the increase – $18.6 million – would pay for salary and benefit boosts for teachers.

SEE MORE: LPS proposes $25 million spending increase in 2024-25 budget

But to do that, the district has to raise the property tax levy.

“The biggest thing we’ve heard from the public is really just gaining clarity around the increase in the tax levy,” said Liz Standish, the associate superintendent of public affairs for LPS.

The district also has to make up for a $32 million drop in state aid.

So LPS proposed an increase to the tax levy of 2.7 cents per $100 of valuation.

For the average homeowner with a property worth about $280,000, you would pay about $3,088 in property taxes to the school district.

That’s around $75 more than last year but about $300 less than the 2022-23 school year.

Carter Thiele spoke in front of the school board Monday night, representing the Lincoln Independent Business Association.

He said LPS is in a tough situation.

“While this is a proposed property tax increase, these are the decisions that show a recognition of the significant role that LPS plays on local home ownership affordability,” Thiele said. “And they mirror the difficult decisions that our members and others in the community have to make when the cost of living increases at a faster rate than their income.”

He’s calling on lawmakers to do their part.

“Moving forward, it’s very clear that the state has to find a way to reconstruct our state funding towards our educational institutions,” Thiele said.

Standish said the district is doing its best to be mindful of homeowners.

“That’s something we had conversations about,” she said. “There really wasn’t another way to replace that revenue considering that this budget has a 1% revenue increase over the last year for the school district.”

The budget proposal has to be finalized by Sept. 30, so Standish recommends that community members weigh in before it’s too late.