Budget committee: state aid error complicates 5-year forecast but reserves remain above board minimum

Summary

The OPS budget and audit committee reported Jan. 30 projections and a five-year forecast Feb. 19, noting a Nebraska Department of Education state-aid calculation error that could reduce revenue; the committee said it does not currently project increased general-fund spending and plans a disciplined approach to manage the shortfall.

Miss Magnuson, reporting for the budget and audit committee, told the board the committee reviewed preliminary budget projections for 2026-27 and updated a five-year forecast at its Jan. 30 meeting. She said the Nebraska Department of Education will release a revised preliminary state-aid model next week, and the committee is assessing how a recent state aid calculation error could affect district revenue.

"At this point, we're not projecting any increase in general fund spending for 2026-27," Magnuson said, but she warned that the five-year forecast shows the general-fund reserve gradually declining; the projection nevertheless keeps reserves above the board's required 10% minimum if current plans hold. The committee signaled it will take a disciplined approach to spending to manage the reduced state funding without major classroom impacts.

Next steps: Treasurer Ryan will share an early budget update with the full board at the Feb. 19 meeting once the NDE model is released and staff have incorporated the new information.