Preliminary Proposed Lincoln Public Schools 2024–2025 Budget
The Preliminary Proposed Budget for the 2024-2025 school year represents an investment in strategic priorities identified by the Lincoln Community. The Budget Work Session on June 25th provides details about the preliminary proposed General Fund expenditure and revenue budget. Two Public Work Sessions, Three Public Forums, Six Board of Education meetings and an online input tool provide the community with opportunities to weigh in on the LPS budget.
June 25th, 2024 Budget Work Session
Important Dates and Events
Friday, July 12
Online Input Window Closes
Tuesday, July 23
Budget Work Session at 4:30 p.m.
at the SJDLC, Boardroom
Board Meeting at 6:00 p.m.
at the SJDLC, Boardroom
Opportunity for Public Comment
Tuesday, August 13
Board Meeting at 6:00 p.m.
at the SJDLC, Boardroom
Opportunity for Public Comment
Monday, August 26
Budget Hearing at 6:00 p.m.
at the SJDLC, Boardroom
Key Contacts
Kim Schmidt – Director of Budget & Finance, kschmidt@lps.org; 402-436-1708
Doug Anderson – Budget Specialist, danders5@lps.org; 402-436-1614
Julie Dougherty – Budget and Audit Technician, jdougher@lps.org; 402-436-1757
Videos and Presentations
Past Budget Information
Interested in scheduling a budget presentation for your community group?
Contact Associate Superintendent for Business Affairs Dr. Liz Standish at 402-436-1636
Questions and Answers
Salary and benefit increases for existing staff – $19 million of the total $25 million.
$32 million
In 2023, Lancaster County values went up 22.5%. The school board responded by lowering the property tax levy 14 cents for the 2023-2024 school year. The state aid formula for funding schools reduces state funding when property values go up. As a result, state funding to LPS will be going down $32 million for the 2024-2025 school year. This is equal to 9 cents of levy in lost revenue. However, our budget proposal includes a total levy increase of 2.7 cents. We have tried to reduce the levy when and where we can to offset the rising values for property owners. The cost of operating the school district continues to increase.
The state aid formula for funding schools reduces state funding when property values go up. As a result, state funding to LPS will be going down $32 million for the 2024-2025 school year. This is equal to 9 cents of levy in lost revenue. However, our budget proposal includes a total levy increase of 2.7 cents. We have tried to reduce the levy when and where we can to offset the rising values for property owners. The cost of operating the school district continues to increase.
Yes, the levy at this point is only an estimate and it will need to respond to the certified valuation.
The 2024-2025 preliminary proceed budget includes a 1% increase in revenue. The primary use of the increase in revenue is to support salary and benefit increases.
The primary driver of budget growth is salary and benefit increases. In this labor market the growth is greater than 3% which aligns with the Bureau of Labor Statistics measure of the cost to employ people.
The levy increase of 2.7 cents will be a 75 dollar increase per year on the average residential home. Property owners will see an increase in tax with the increase in the levy.
School districts do not receive funds from lottery, gaming, etc.
The school district is facing a loss in Federal Funding for the 2024-2025 with the expiration of pandemic funding. This resulted in the reduction of 40 positions estimated at 3.3 million.
LPS uses a three year forecast to plan for sustainability and stability in programming. The increase in cash flow will be used over a series of years incrementally. Budget to use a large amount of cash in one year only creates a large gap to fill the following year.
The general fund balance typically hit a low point at the end of March each year before property taxes begin to come in during April and August. The balance at the end of March 2024 was $69 million and the Federal Fund was a negative $48 million. $69 million would represent about two month of operating revenue. The 2024-2025 utilizes $1 million in cash reserve and incremental draws on the cash reserve are planned in the following years in our forecast.
The negotiations process in LPS includes the review of similar positions in comparable school districts. In many positions we seek to be competitive with neighboring districts to ensure we can fill positions.
An Associate Superintendent was added a few years ago based on the size of the school district and the strategic focus on both instruction and behavior.
74% teachers and school, 12% operations and transportation, 6% school office, 2% school security staff, 3% technicians and technical support, 3% district and school administrators
The starting salary for a teacher in LPS is second to Omaha Public Schools. When you look at the whole pay scale it varies but LPS is generally in line with other districts.
Yes, from $177.47 to $185.53 per day (or 4.55%).
Yes, under the current system if (or when) LPS becomes Foundation Aid funded only, then equalization diminishes and state funding will be more static.
Foundation aid is $1,500 per student and does not include an inflation or growth factor.
Last year valuations went up 22.5% and the Board lowered the levy 14 cents so the average home owner saw an 8% increase. This year, if valuations stay flat the 2.7 cent increase results in a 2.5% increase.
The $32 million drop in state aid would require a 9 cent levy increase. The Board’s plan resulted in a 2.7 cent increase.
The general fund revenue budget is growing by 1%.
The district aligned field trips with curriculum and continues to offer a field trip to Pioneers Park for all 1st graders. Pioneers Park Prairie Immersion is listed as an option for our school-sponsored trip in 4th grade.
