Omaha Public Schools projects $49.8 million state-aid loss; board reviews levy and budget options

The Omaha Public Schools budget and audit committee on Wednesday presented a preliminary budget and five-year forecast showing a projected $49,800,000 reduction in state aid that will significantly affect district revenues.

Miss Magnussen, who briefed the board, said administrators had analyzed the financial impact and modeled options that include increasing the district's property tax levy to the statutory minimum. The committee's preliminary estimate indicates that change would increase the total levy by about 8.2 cents, though the presenter noted the projected total levy would remain lower than some recent years prior to 2024'25 when the board had previously lowered the levy.

The administration also presented preliminary expense changes: an increase of $28,100,000 largely for staff wages, special education services and transportation, and reductions of $18,100,000 in other contracted services and contingency reserves. The net preliminary budget increase shown was $10,000,000 (about 1.18%).

"The administration reviewed the impact of the $49,800,000 loss of state aid on district revenues," Miss Magnussen said during the report. She told the board the budget and audit committee and administration will closely monitor the five-year forecast and that the district planned public engagement: three budget town halls provisionally scheduled for July 21, July 23 and the morning of July 25 to brief the public on the preliminary budget and gather feedback.

Board members were told the general fund reserve could decline over several years and might drop below policy minimums under certain scenarios, and that staff will continue to refine assumptions and present updated projections in July. No final levy decision was made at the meeting; board members will have additional briefings and small-group meetings before any formal levy action.