Norfolk Public Schools holds budget and tax-request hearing as district projects $37.5 million tax request

NORFOLK, Neb. — Norfolk Public Schools on Sept. 8 held its annual budget hearing to review the district’s proposed 2025–26 spending plan and its related tax request, district staff said.

Eric Wilson, the district staff member presenting the budget, told the Board of Education the proposed total tax request is $37,507,925, including $35,000,917 for the general fund, $808,081 for the special building fund and $782,525 for a bond payment labeled QCPUF. He said the district’s total assessed valuation rose about 13.23 percent from the prior year.

The hearing matters because the tax request determines how much property-tax revenue the district will ask for; adoption of the final budget and tax resolution was scheduled for the board’s Sept. 22 meeting, not at the hearing.

Wilson summarized the district’s finances: 2024–25 budgeted expenses were $61,511,392; the proposed 2025–26 budgeted expenses are $60,749,155, a 1.22 percent decrease. He said staffing is the largest portion of expenses — roughly $51 million, about 84 percent of the budget — and that contracted professional and technical services represent about $4 million, or roughly 6.6 percent. He said the district has implemented cuts since last November in areas including legal services, student-teacher stipends and several contracted positions, estimating roughly $876,000 in reductions.

Wilson told the board the district expects non–property-tax revenues to fall from $27,617,358 in 2024–25 to $22,966,530 in 2025–26, a decrease of about 16.8 percent. He said the largest revenue changes are a $3.6 million reduction in state aid and about $937,000 in reduced federal grants, including Title programs.

Wilson explained how the proposed levy produces more dollars even though the levy rate is lower: the proposed total levy would be 0.8737 per $100 of assessed value, a decrease from last year’s 0.92514. He said the district proposes a general-fund levy of 0.8366 (down from 0.9045 last year) that would produce $35,917,319 because of the higher overall valuation. The district proposes budgeting 0.0188 per $100 for the special building fund after years of leaving that fund at zero, he said, and he said the district plans to use about $2.2 million of cash reserves to help balance the budget.

During the public comment portion of the hearing, two residents spoke about the tax burden. Steve Jessen of Norfolk said, “We just can't continue to increase property taxes on on the people of Nebraska,” adding that rising taxes are driving people out of the state. Jan Hayerman of Norfolk said she appreciated the board’s efforts to reduce spending but said the proposed tax change still leaves many residents — including renters and neighbors near the poverty level — struggling to cover higher bills.

Superintendent Bill McAllister addressed the audience and clarified how levy calculations and valuation changes affect individual tax bills. He said reductions in state aid and prior levy decisions factor into the district’s revenue picture and noted that if a particular homeowner’s valuation did not rise by 13 percent, that homeowner could see a tax reduction under the proposed levy. He reiterated that final budget approval will be on Sept. 22 and invited residents to review budget materials or meet with staff.

The hearing opened for public comment and then closed without action; the board will consider formal adoption of the budget and tax request at its Sept. 22 meeting.

The hearing included the posting required by the Open Meetings Act and the district provided contact information for citizens who wanted more details about the tax request.

The district provided slide and summary materials during the hearing; copies were available from district staff on request.