Lincoln Public Schools staff presented a flat tax levy to the Lincoln Board of Education during a special work session on Tuesday, June 23 when the Board previewed the Preliminary Proposed 2026-2027 Budget. Last year the Board approved a nearly 8.8 cent reduction in the total levy, bringing it to a historic low $1.02 per $100 in property valuation.
“The district budget development begins in November and the most significant decisions are made through salary negotiations,” said LPS Associate Superintendent for Business Affairs Liz Standish. “In February, we compile district needs ensuring alignment with the Strategic Plan, each department reviews existing budget lines, and we hold staffing conferences with each school to determine the staffing profile to meet student needs.”
Looking at the requests along with a three-year forecasting model helps the Board Finance Committee and staff establish a preliminary budget for the June work session.
Standish added, “Through this work, we are able to minimize the negative impact of drastic swings in revenue as there are several volatile variables outside of our control year over year.”
State Equalization Aid is projected to decrease nearly $3.6 million, and the district is accounting for more than $2 million in federal grants that have ended or are concluding this past year.
Even with a loss of federal grants, the Finance Committee has determined they can keep the levy flat because of the projected 4.75% increase in property valuations. However, property owners are still paying less in property taxes than they did in 2024. The state invests nearly $1.2 billion in property tax relief providing credits to property owners. Now, approximately 30% of the tax revenue for a school district is paid through state revenue sources that include sales and income taxes instead of solely relying on property taxes.
Below is a comparison on the levy and valuation impact on an average home:
Year | Average | Levy | LPS Ask | Net Taxes |
|---|---|---|---|---|
2022 | $228,660 | $1.21 | $2,767 | – |
2023 | $281,614 | $1.07 | $3,013 | – |
2024 | $290,904 | $1.10 | $3,200 | – |
2025 | $319,213 | $1.02 | $3,256 | $2,279 |
2026* | $334,376 | $1.02 | $3,411 | $2,387 |
*Projected and proposed
Of the $585,899,361 in the Preliminary Proposed 2026-2027 revenue budget, LPS will receive 44.20% in property tax revenue and 32.42% in State Equalization Aid and Property Tax Credit funds. Shifting away from the majority of school funding being reliant on property taxes.
LPS is preliminarily proposing a 4.96% increase in the expenditure budget to $586,449,705. Approximately $18.5 million of the $27.7 million – or 67% – will go towards salary and benefit increases already approved through the staff negotiation process earlier in the year.
Staff salaries and benefits make up approximately 88.64% of the total 2026-2027 proposed budget. Each month, LPS pays approximately 6,500 employees a total of $30 million – money that pumps back into the Lincoln economy through the purchase of goods, services and property taxes.
Other highlights of the 2026-2027 preliminary proposed expenditure budget aligned with the strategic plan include:
Student Wellbeing and Outcomes
Approximately $1.5 million for counselors and behavior framework coaches to sustain student support previously provided by federal grants.
Nearly $1.1 million to increase staffing to meet student needs across the district, including fully staffing Standing Bear High School now in its fourth year.
Adding approximately $1.75 million for Special Education teachers and support and replacing federal IDEA funds that were reduced.
Increasing the Early Childhood budget by $199,725 for additional staffing and supplies.
Staff Wellbeing and Outcomes
LPS employee groups negotiated agreements recently approved by the Board include certificated staff salary increase at 4.34%, technicians salary increase at 4.21%, administrators salary increase at 4.26%, custodial salary increase at 3.93%, a 3.90% increase in salary for nutrition service workers, a 3.89% increase in salary for paraeducators, a 4.34% salary increase for maintenance employees and a 4.25% salary increase for office professionals. The Board will soon consider a transportation contract with proposed salary increases as well.
Family and Community Engagement
Approximately $83,440 increase for a new unified communications platform for mass communication and website management.
District Systems and Operations
Increasing school security by updating 31 school buildings to create visitor vestibules for vetting guests instead of the school office.
Required fixed cost increases of approximately $1.5 million will address insurance premiums, and added staffing costs because of new state laws around background checks.
Approximately $750,000 to update and implement an Enterprise Resource Planning platform.
Standish shared there were approximately $2.6 million in proposed needs requested by different departments not funded in the 2026-2027 proposed budget.
“Our department leaders do a great job of going through their programs and determining those requests that serve our students in the classroom,” Standish said. “Unfortunately, there are more needs than we have resources. Our staff and board have to make the tough decisions prioritizing investment that directly impact instruction and support serving student needs.”
The Board of Education values community input, and continues to rely on a solid process for budget development that includes multiple opportunities for community feedback.
“The Lincoln Board of Education traditionally provides multiple opportunities throughout the budget development process for our families and community members to engage with us in building the budget,” said Board Member and Finance Committee Chair Annie Mumgaard. “We want to hear from you, and we hope the community utilizes the many communication avenues for sharing their priorities and questions. The earlier in the process we hear from our community, the more likely it is we can address their feedback.”
Below are all of the opportunities for the community to participate in the process this week:
Wednesday, June 24
7:00 a.m. - Online input form opens for the public to submit comments or questions. The Q&A form will close on July 10.
12 p.m. - Virtual public forum
7:00 p.m. - In-person public forum at Steve Joel District Leadership Center, Boardroom. The session will be livestreamed on YouTube.
Thursday, June 25
6:00 p.m. - Virtual public forum
Community groups and organizations interested in receiving a preliminary proposed budget presentation may request one by contacting Associate Superintendent for Business Affairs Liz Standish at 402-436-1636.
Information about the budget development process can be found on the website at lps.org/budget.