Finance director: federal funds released but district faces $3 million drop in equalization aid; budget schedule set
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Summary
Finance staff told the board federal education funds are being released, but the district expects about $3 million less in equalization aid and is planning a zero-based budget with a small expense reduction for 2025–26. The board set dates for a budget preview, tax hearing and budget adoption.
The district's finance staff reported that several federal funds previously on hold are being released, but Norfolk Public Schools is projecting a roughly $3 million reduction in equalization aid for the 2025–26 budget year.
"We know that we are losing $3,000,000 in equalization aid," the finance report said, and the district is working through the impact as the board develops its budget. The report described a zero-based budgeting approach and noted steps the board has already taken this year to reduce costs, including combining or eliminating positions. The staff said they are currently looking at a potential 1.21'1.24% decrease in expenses for 2025'26.
The report said the district had attended administrative sessions in Kearney for budget updates and legal changes and that most federal funds that had been on hold will be released; some grant applications remain outstanding and the district anticipates a slight reduction in those funds compared with prior years. The finance director said valuation numbers due Aug. 20 will inform levy-setting.
The board set a budget timeline in the meeting packet: a budget preview on Aug. 25, budget and tax hearings on Sept. 8 and budget adoption on Sept. 22.
The packet also listed claims by fund (as read during the meeting): General Fund $249,687.96; Nutrition Fund $11,328.70; Subsidiary Fund $6,797.05; Depreciation Fund $439,871.43; QCPUF $17,730; Senior High Activity Fund $16,126.77; Junior High Activity Fund $431.92; Student Fee Fund $710.73.
Why it matters: A multi-million-dollar reduction in equalization aid affects the district's choices about staffing, programs and the levy. The board is proceeding with a budget process that includes public hearings and a planned adoption date.
