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Bennington Public Schools proposes $140.1 million 2025–26 budget; requests $42.0 million in property taxes, levy held at $1.358
Summary
At a Sept. 8 special budget hearing, district administrators presented a worst‑case NDE budget of $140,138,659 and a property tax asking of $42,036,377 while explaining how rising local valuation and state equalization rules reshape revenues and state aid.
Bennington Public Schools administrators presented a proposed 2025–26 budget totaling $140,138,659 at a Sept. 8 special budget hearing and said the district will ask for $42,036,377 in property taxes while holding the combined general and special building levy at $1.358.
The budget presented to the board is the Nebraska Department of Education (NDE) “worst‑case” submission, administrators said; it lists a $56,980,007 general‑fund request, $56,458,806 in special building funds, $17,583,315 in bond/other funds and a QCPUF balance of $700,638. "All in our 2526 budget request made $140,138,659," said Dr. Paz during the presentation.
Why it matters: the district is growing rapidly, and local property valuation increases reduce state equalization aid under Nebraska’s funding formula. Dr. Paz told the board that Bennington’s valuation exceeded $3 billion this year (a 9.3% increase) and estimated a student enrollment increase of 3.65% for 2025–26. He emphasized that personnel—salaries and benefits—account for roughly 81–82% of general‑fund spending and that the district anticipates a personnel cost increase of about $3.1 million.
State aid and credits: the district expects equalization (state) aid of $14,069,664 next year, down about $153,000 from the prior estimate and marking a third consecutive year of decreases. Dr. Paz explained that as local property valuations rise, the state reduces equalization aid because the formula models districts as if they were taxing at the full allowable rate. He also described the 30% property‑tax credit program, under which the state reimburses approximately 30% of the school tax asking and reduces direct cost to property owners.
Revenues and debt: special education reimbursements and the property‑tax credit are major revenue lines; special education funding is projected near $5.3 million (about 10% of general‑fund revenue). The district reported $159,365,000 in outstanding debt and noted recent early principal paydowns; administrators provided a multi‑year principal schedule showing larger payments ahead.
Next steps and public process: because the district’s projected revenue increase exceeds the 2%+growth threshold, Dr. Paz said Bennington will participate in a joint public hearing in Douglas County. A postcard notification to patrons is being mailed; the joint hearing is scheduled for Sept. 17 at 6:05 p.m. at the Omaha/Douglas County Civic Center. The board plans a budget adoption meeting on Sept. 23, where administrators said they will bring bid package #4 for approval if required to keep construction schedules moving.
Board response and procedure: board members asked clarifying questions about how raising the local levy interacts with equalization. Dr. Paz replied that raising the local levy does not change how the state models equalization—the state treats districts the same for formula purposes whether a district taxes at 90¢ or $1.05. The special budget hearing was adjourned by unanimous roll call, and the board called the regular meeting to order to continue routine business.
What’s next: the joint public hearing (Sept. 17) and the board’s Sept. 23 budget‑adoption meeting are the next procedural steps; administration expects to follow up with detailed budget documents and answer patron questions after the meeting.
