Omaha Public Schools proposes $1.34 billion budget, seeks $409.2 million in property taxes; board to consider 4% override

Omaha — Omaha Public Schools on Monday presented a proposed $1,340,000,000 budget for the 2025–26 school year and a combined property tax request of $409,200,000, with district officials asking the Board of Education to consider a resolution to levy an additional 4% in revenue to cover compensation commitments and other costs.

Shane Ryan, who presented the budgets to the board, said the proposal is built from a general fund and 12 other funds and that he would focus the presentation on the four levy funds that drive property tax: the general fund, the bond fund, the special building fund and the Qualified Capital Purpose Undertaking Fund. “The $1,340,000,000 budget, proposed budget for Omaha Public Schools is made up of the general fund and 12 other funds,” Ryan said.

The nut of the proposal is a general fund expense budget of $850,000,000 — a $38,000,000 (4.868%) increase from the prior year — and a proposed total property tax request of $409,200,000 that would produce a total levy rate of $1.13 per $100 of valuation, a 2.2-cent increase from the prior year. The district also proposes a 4% board override option authorized under state law that would add roughly $30,100,000 to the base certified property tax request authority, Ryan said.

Why it matters: the budget directs more than 60% of the general fund increase to salaries and benefits to maintain compensation commitments the board approved last year and to sustain recent hiring. Ryan told the board the district added 1,088 staff since Aug. 1, 2024, including 197 teachers, and that personnel costs in the general fund total $683,700,000, about 80.43% of the general fund.

Key figures and program changes

- General fund proposed expense: $850,000,000 (up $38,000,000). - Total proposed district budget (four levy funds combined): $1,065,000,000 (this presentation excludes approximately $100,000,000 in separately budgeted federal, state, local and philanthropic grants). - Total proposed property tax request: $409,200,000, producing a total levy of $1.13 (up 2.2¢). - Contingency increase: $10,000,000 added this year to account for federal funding uncertainty; unspent contingency would remain in general fund reserves. - Projected Omaha School Employees Retirement System (OSERS) actuarially required contribution (ARC) for 2025–26: $38,000,000 (about $1.6 million less than last year, per the presentation). - Transportation: $3,200,000 increase, including funding a second bus barn (Buena Vista High School area) and higher contracted-transportation costs. - Contracted services increase: $4,800,000 (includes transportation and insurance increases). - Supplies and materials: reported increase of $10,300,000 (largely reflects the contingency). - Bond fund property tax request itemized as $57,900,000 (to cover principal and interest scheduled for fiscal year 2026–27). - Qualified Capital Purpose Undertaking Fund levy reported as 1.092¢ (small decrease from prior year).

State law and revenue caps

Ryan summarized provisions of Nebraska legislation that shape revenue authority for the district, including LB 243’s base revenue cap and an option for a 4% additional increase through a board resolution and a 70% supermajority vote. He said the Nebraska Department of Education calculates certified property tax request authority under that law. Ryan provided the district’s base certified property tax request authority, with student growth allowances, as $317,200,000 and said the 4% override would add roughly $30,100,000 (the presentation tied those figures to LB 243 calculations).

District forecast and risks

Ryan presented a five-year forecast that highlighted two near-term pressures: an anticipated drop in state aid of nearly $20,000,000 in 2027–28 tied to a district-calculated student-poverty metric used in the TEOSA (Tax Equity and Educational Opportunities Support Act) formula, and rising curriculum and technology costs as ESSER grant-funded purchases are absorbed into the general fund. He described the forecasting approach as conservative — “we underestimate revenues and overestimate expenses” — and said long-term projections are updated regularly.

On the contingency and reserves, Ryan said the $10,000,000 increase responds to an earlier federal funding risk this summer when the district faced the potential loss of $8,000,000 in federal funds. He also noted board policy 3011 requires maintaining unassigned general fund reserves between 10–20% of prior-year expenditures and that projected reserves were expected to finish the year near 17%.

Public comment and board questions

Doug Kagan, representing Nebraska Taxpayers for Freedom, thanked staff for meeting with the group but urged the board to avoid a levy override. “Instead of shoveling in more tax dollars, remedy the causes for employees leaving,” Kagan said, expressing concern about continued turnover and the impact of higher property taxes on homeowners.

Board members asked about which changes most affect student achievement, the contingency account, the equipment and technology cost line, and assumptions behind the five-year projection and override. Ryan said the largest near-term impact on achievement stems from the board’s compensation commitments and the hiring that followed, and reiterated that contingency and technology lines reflect conservatism in forecasting.

Next steps

Ryan told the board the district must participate in a joint public hearing for tax requests because the proposed property tax request increases by more than 2%. That joint hearing is scheduled at the Douglas County Courthouse, 1819 Farnam St., on Wednesday, Sept. 17 at 6:05 p.m., where the district and other political subdivisions will present and receive public comment. The board is scheduled to consider final adoption of the proposed budgets and property tax requests at its regular meeting on Monday, Sept. 22, 2025.

Ending

No formal vote was taken at the hearing; the presentation concluded and the board moved to the public hearings portion of the agenda, which included one public commenter. The board and staff said they will continue budget review and workshops before the scheduled adoption vote.