Lincoln Public Schools presents preliminary budget; district to fund half of school counselors after federal grant ends

Lincoln Public Schools Associate Superintendent for Business Affairs Liz Standish presented a preliminary budget at a public forum, saying the district will file its budget on Sept. 30 and expects a property tax request hearing on Sept. 9.

Standish said the district is proposing an overall levy of about $1.04 and a general-fund levy near $0.91, while adding a penny to the special building fund to raise about $3.8 million for construction and growth needs. "We file our budget September 30. So there's 2 different paths in the month of September. We believe we will likely be having the property tax request hearing on September 9 here at Lincoln Public Schools," Standish said.

The nut of Standish's presentation was that the district is managing significant revenue volatility driven by enrollment changes, state aid adjustments and property valuations. She said Lincoln Public Schools' revenue picture is about $557,000,000 and that about 90% of district expenditures fund personnel. "We are about 90% personnel, which means of the dollars that we spend, about 90¢ of every dollar goes to pay staff," Standish said, noting the district runs roughly a $25 million to $30 million monthly payroll.

Standish outlined several specific line items and contingencies. The district projects roughly $20,000,000 in increased general-fund expenditures, with the largest single increase being salary and benefit adjustments ("about $12,300,000"). Other highlights she cited included a roughly $1,000,000 investment in early childhood, an allocation of $2,000,000 for facility maintenance, and sustainability investments such as geothermal projects and recently installed solar that saves about $485 per month per site.

Standish described federal and state funding pressures. The district receives about $100,000,000 in federal funds spread across multi-year grants, she said, and recently received a letter stating the district's school-based mental health grant would be discontinued Dec. 31, 2025. "Under that letter, we would actually lose access to mental health supports at 18 of our elementary schools," Standish said. To preserve counseling access, the budget proposal includes district general-fund dollars to pay for the portion not covered by federal grant funds this coming year; Standish described that as budgeting "for the other half that's needed." She said the district has contacted its congressional delegation to request restoration of the federal funds.

On state aid, Standish noted long-term declines and year-to-year volatility. She pointed to a peak in state aid around 2018–19 and said state aid dropped substantially afterward; because state aid is calculated as needs minus locally generated resources, changes in property valuations can reduce state aid. Standish said the district estimates a 7% increase in total property valuation for the district this year and warned that valuation increases can lead to lower state aid in later years. She said final assessed valuation figures would be known Aug. 20 and the budget will be adjusted as needed.

On property-tax and capital funding, Standish said the district proposes placing one penny in the special building fund (estimated to raise about $3.8 million), bringing the building fund balance to about $7.8 million as the district closes out a 2020 bond issue. She described how levy calculations changed after the 2023 financing model changes and noted the district is trying to smooth large year-to-year valuation swings.

Standish closed by outlining engagement opportunities and next steps: two formal public hearings, two public work sessions, three public forums, six board meetings, an online input window, and additional virtual forums. "All of the information about the school district budget is available online with the keyword budget," she said, and invited community questions and presentations.

Standish identified district staff who contributed to the budget presentation, including Kim Schmidt, Jess Jefferson, Doug Anderson and April Douglas, and offered to receive follow-up materials and questions by phone or email.

Ending: The district scheduled another virtual public forum and maintained an online input window for community comment as it finalizes the budget before filing on Sept. 30.