Lincoln Public Schools staff present 2026-27 budget calendar and warn of roughly $4 million drop in state aid

A Lincoln Public Schools staff member presented the district's budget development calendar for the 2026-27 school year and told the Board of Education the district faces an estimated $4 million reduction in state aid.

The staff member said the district must present a budget calendar under Policy 3100 and outlined the public schedule: a public work session on June 23, an online input window opening June 24, a noon virtual presentation and a 7:00 p.m. in-person presentation, followed by a virtual public forum the next evening. "We have two public work sessions, three public forums, six Board of Education meetings which have public comment," the staff member said, adding the calendar will be posted on the district website this week.

Why it matters: the schedule sets the formal opportunities for community input and establishes statutory deadlines the board must meet as it prepares its property tax request and preliminary budget filings. The staff member emphasized that June is the primary engagement month and urged residents to submit ideas before that month to ensure they can be considered.

On revenue, the staff member said state aid for the 2025 year was about $82.5 million and estimated 2026-27 state aid at approximately $78,977,000, describing the change as "a revenue drop ... when it comes to state aid of a few million dollars." The presenter added that certified valuation rose about 8.59 percent and cautioned that as valuations increase, state aid formulas can reduce aid, affecting total district revenue.

Staff also summarized the legislative context that could alter the district's fiscal picture. They described LB 1219 as "a hard cap plus growth for school districts" and warned it "will not work for Nebraska schools," arguing that districts need flexibility to manage uneven revenue growth and that staffing costs—about 90 percent of Lincoln Public Schools' expenditures—limit options for deeper cuts. The staff member said an amendment to LB 1050 led district curriculum staff to prepare a fiscal note estimating roughly $5 million per year in mandates related to reading instruction if that measure were adopted as amended. They also said LB 714's proposed shift of motor vehicle tax revenue to counties could reduce the district's motor vehicle tax receipts by an estimated $3 million, noting that a property tax authority could be used to offset such a shift.

The presenter placed these items in the context of recent reforms, saying the 2023 education finance package (Governor Pillen's reforms) increased state foundation aid, created the Education Future Fund and altered levy caps, and that the School Finance Review Commission's preliminary report documents a recent shift in funding sources from local dollars toward state funding in many districts. "For Lincoln Public Schools, we're a little bit more balanced than the state as a whole," the staff member said.

Board members and staff discussed community outreach plans; the presenter said the district routinely offers presentations to local groups (the Chamber of Commerce and LEBA were cited) and reiterated the invitation for residents to reach out to staff or use the district website for more information.

The board did not take any formal votes during this segment. The budget calendar item closed with the presenter introducing the next speaker, Mara, who began a separate item on wellness and multicultural programming.