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Board hears budget warning and state education bill package concerns
Summary
District finance staff warned of a projected $3–3.5 million drop in state aid for 2025–26 tied to TEOSA calculations and higher local valuations; the board's Government Relations Committee also summarized a broad state education bill package (LB653) that contains multiple provisions the district is tracking.
NORFOLK, Neb. — Norfolk Public Schools business staff told the board the district is preparing for significant state funding changes while the Government Relations Committee briefed the board on a legislative education package under consideration at the state level.
Finance update: anticipated state aid decrease
Mister Wilson, the district finance representative, told the board the district is working on the 2025–26 budget, due Sept. 30, 2025. He said a larger increase in local property valuations has prompted the state to view local tax resources as underutilized, producing a projected decrease in state aid under TEOSA (the Tax Equity and Educational Opportunities Support Act). Staff estimated the district could see a state‑aid reduction of approximately $3 million to $3.5 million for next year. Wilson said final impacts depend on pending legislative changes (legislative session ends June 2) and that county valuations will not be final until Aug. 20.
Committee report: LB653 (education committee package) and related bills
Dr. Patty Goebbels summarized a Government Relations Committee meeting and a follow-up lunch with Sen. Dover to discuss LB653, described in the presentation as an "education committee package" that includes multiple bills and amendments. Items the committee reported as included in the package were:
- Amendment 932: new definitions/levels for special education and language about districts accepting option students with IEPs until a district's percentage of option‑enrolled students matches the state average.
- LB303: adjustments to TEOSA to maintain special education reimbursement at or below 80%.
- LB430: allows suspension of students in pre‑K through second grade for violent behavior capable of causing physical harm.
- LB497: allows homeschool and private school students to enroll in the nearest public school for extracurricular activities if they take at least five credit hours.
- LB507: changes relating to school transportation expenses for foster students and children with disabilities; the presentation warned this could be costly.
- LB625: would establish a database of financial information from school districts.
Dr. Goebbels told the board that district staff would meet with Sen. Dover to discuss the pros and cons of the package; she and district leaders also planned to meet with Congressman Flood about proposed federal consolidations and cuts included in a presidential budget proposal.
Why it matters
The finance projection and the legislative package together could materially change the district’s revenue picture and program obligations. District staff said they will monitor legislative outcomes and county valuation reports over the summer and keep the board informed.
What’s next
District staff will continue budget modeling and report updates as legislative action and valuation numbers become final. The board scheduled additional meetings and encouraged member attendance at relevant legislative briefings.
