LPS finance staff says state aid will fall about $4 million next year; board reviews budget calendar as lawmakers consider caps

District finance staff presented the Lincoln Public Schools board on March 24 with the district’s 2026–27 budget-development calendar and a near-term revenue outlook, telling members to expect public engagement in June and a modest projected drop in state aid.

The district reported certified state aid of about $82.5 million for 2025–26 and a projected $78,977,000 for 2026–27 — a reduction of roughly $4 million that staff said will add pressure during budget planning. Staff also said certified valuation in the district rose and noted that changes in valuation affect state-aid formulas and levy calculations.

Staff walked the board through the public schedule: an online input window and public work sessions beginning June 24, a first public work session on June 23, and additional hearings and forums through July and August to gather community input ahead of budget filing deadlines in late summer.

Legislative context: Staff warned the board about bills in the Nebraska Legislature that could materially affect school finance or timelines, including LB1219 (described by district staff as a hard cap proposal that “will not work for Nebraska schools”), LB803 (possible changes to budget timelines and hearings), LB1050 (amendments with a potential $5 million fiscal impact related to reading instruction mandates, per the district’s preliminary fiscal note), and LB714 (changes to motor-vehicle tax revenue that could shift roughly $3 million away from the district and raise property-tax pressure if enacted as proposed). The district emphasized uncertainty over implementation dates and urged community members to follow developments.

What the board will do next: The board reviewed and received the calendar and forecast for planning; staff said the calendar will be posted on the district website and that staff will return with finalized budget documents and more complete revenue modeling in July once county certification is available.

Attribution and numbers: The state-aid figures were reported by district staff during the presentation; staff noted that a chart was cut off in the meeting packet and promised fixes before posting. The board’s finance staff and presenters answered members’ questions about outreach and statutory deadlines.