The more than $550 million spending blueprint and property tax levy that will guide Lincoln Public Schools for the next year was officially approved by the Lincoln Board of Education on Tuesday evening.
The seven-member board voted unanimously at its regular meeting to approve the $558.7 million budget and 7-cent levy drop for the 2025-26 school year.
The budget boasts a nearly $20 million expenditure increase — going from $539 million in 2024-25 to $558.7 million — and a 7-cent drop to the property tax levy from about $1.11 per $100 of valuation to about $1.04.
The budget proposal was first unveiled in June and during a meeting earlier this month board members praised the efforts of district staff and voiced support for the proposal.
As district officials begin building the budget each year, they work to align spending with goals outlined in the strategic plan, including graduation rates, early childhood, staff well-being and community involvement, according to Liz Standish, associate superintendent for business affairs.
This year’s 3.6% spending increase is largely due to raises in negotiated salaries and benefits for staff. About 89% of the budget is allocated to personnel costs. This fall, teachers saw a 3.8% pay increase, among other raises for various employee groups.
The budget also addresses growing enrollment, increased staff levels, paused federal funding sources, expanded summer school offerings and early childhood program needs. Money is also set aside in the budget for increased bilingual liaisons, expanded contracts and stipends for suicide prevention groups and increased graduation pathways in social studies.
While the overall spending blueprint is increasing, the property tax levy will go down this year, which is largely due to a hike in state aid — making it one of the district’s lowest levies in decades.
This year, LPS will see its state aid grow by about $10 million to $82.5 million, allowing the district to lower the levy by 7 cents after raising it by 3 cents last year amid a $32 million loss in state aid.
Despite the lower levy, homeowners may still see a rise in property taxes depending on their home’s valuation, which is determined by the county assessor.
Under the new levy, the owner of a home worth $311,267 — the average price of a home under projected valuation increases this year — would pay $3,237 in taxes to LPS.
The district is expected to bring in about $353.8 million in property tax revenue, about $2.8 million less than last year, based on a 7% increase in property values.
LPS is required to turn in its approved budget to the Nebraska Auditor’s Office by Sept. 30.
Reach Jenna Ebbers at 402-473-2657 or jebbers@journalstar.com.
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Jenna Ebbers
K-12 education reporter
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