Lincoln Public Schools presents $559 million preliminary 2025–26 budget; proposes 7¢ levy drop, 1¢ building levy increase

Lincoln Public Schools staff presented the district’s preliminary 2025–26 budget at a special Board of Education work session on June 24, proposing roughly $559 million in total expenditures, about a $20 million increase from the previous year.

The presentation, given by Lincoln Public Schools presenter Dr. Standish, emphasized the general fund and the district’s budget process, including community engagement opportunities. "Good evening. We are excited to be here, for this point in the budget process," Dr. Standish said at the start of the presentation.

The district is proposing a preliminary package that would lower the school district’s total levy by roughly 7¢ while adding 1¢ to the building fund. Dr. Standish said the change still yields a net drop in the levy and reflected the district’s current revenue projections, including an estimated 7% growth in assessed valuation and an anticipated $10 million increase in state aid compared with last year. The district’s earlier large valuation increase contributed to a $32 million drop in state aid in a prior year, she said.

Why it matters: the budget funds personnel and programs that schools run daily. District staff told the board that roughly 90% of the budget is personnel, and monthly payroll runs about $25 million to $30 million. The proposal funds negotiated salary and benefit increases; negotiations produced packages ranging from 4.55% to 10% across employee groups, totaling about $18.5 million before a state retirement contribution change. Because Legislative Bill 645 reduced the employer…