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OPS budget hit: district warns of roughly $61 million shortfall after state aid recalculation
Summary
Omaha Public Schools officials told the board that a Nebraska Department of Education recalculation of state aid tied to the Community Eligibility Provision revealed OPS received about $30.5 million too much this year, producing an estimated $61 million impact to the 2026–27 budget and prompting updated forecasts and outreach to state lawmakers.
Omaha Public Schools leaders told the Board of Education on Nov. 14 that a Nebraska Department of Education (NDE) recalculation of state aid tied to federal meal-program reporting will reduce district revenue and could force major budget adjustments.
"The miscalculation meant that Omaha Public Schools received $30,500,000 too much in state aid for this school year," budget committee chair Miss Magnuson told the board, adding that NDE plans to subtract that amount from next year’s aid as part of the correction. She said the combined effect of the lower certified aid and the subtraction is currently estimated to reduce the district’s 2026–27 budget by about $61,000,000.
Why it matters: OPS relies on state aid, property tax revenue and grants to fund schools. The district’s finance team said the NDE error relates to how students directly certified for free meals under the federal Community Eligibility Provision (CEP) were reported to the state — a factor in that year’s TEOSA (Tax Equity and Educational Opportunity Support Act) calculation.
CFO Shane Ryan and other administrators said they have been in close discussions with NDE staff to understand the nature of the error. "NDE staff... are no one is more concerned about this error than they are," a district representative said, noting the department is working to provide the precise explanation as the district updates its models.
District next steps: The administration said it will update preliminary revenue and expense projections and long‑term forecasts once NDE releases its January 2026 preliminary TEOSA model. Magnuson said the district could offset part of the reduction by increasing the property-tax levy, and an early estimate suggested roughly $54.7 million of the shortfall might be recoverable that way — a levy increase that would return the rate to about $1.05 per $100 of assessed value, roughly 9 cents higher than the current levy, according to the presentation.
Administration said it has already notified the speaker of the legislature and OPS’ state senators, and it sent communications to staff and families. Magnuson and district staff emphasized there are variables in the final state model and the district will not know the exact multi‑year impact until NDE’s January release.
Board context: Magnuson framed the update as a preliminary forecast from the budget and audit committee after a Nov. 10 meeting with NDE officials. She said the error affected 21 districts statewide and was not an OPS mistake. Board members asked whether earlier levy decreases limited the district’s ability to raise revenue now; administration said that various statutory caps and prior decisions would influence options but the full picture depends on NDE’s final calculations.
What the board did: The update was presented as information only; no budget action was taken on Nov. 14. The board directed administration to continue updating forecasts and to inform lawmakers and stakeholders as details become available.
