Omaha Public Schools leaders on Tuesday said staff, including teachers, took a smaller pay raise to help offset a $50.6 million state aid shortfall.
Last November, the Nebraska Department of Education said there was a miscalculation in state aid that resulted in three school districts, including Omaha, receiving overpayments.
OPS had the largest overpayment at $30.5 million. In order to address the mistake, NDE will give Omaha and the other two districts less in state aid to make up the difference. With the repayment and other reductions, Omaha will receive $50.6 million less this school year. In November, the school district initially estimated that the total hit to the following school year’s budget would be about $61 million.
Shane Rhian, chief financial officer for OPS, announced the proposed budget at a community meeting Tuesday. The district is still looking at a $10 million increase in the overall budget, which amounts to a 1.18% increase. Rhian said most of that increase is for salary increases for school staff including teachers.
“We feel it’s important to continue to invest in our staff as they work with our students to help them all achieve academically and socially,” Rhian said.
Jane Erdenberger, president of the OPS school board, said it showed commitment when the teachers and other school staff decided to take a smaller pay raise to help address the state aid error.
“I’m a former teacher, and I know how seriously our teachers take their mission,” Erdenberger said. “It is a job of love.”
In addition to smaller staff increases, Erdenberger also said the district would zero out the levy request on the building fund for the year and take $27.5 million out of reserves.
The district previously announced in February it would likely raise the tax levy to the maximum $1.05 per $100 valuation, a roughly eight cent raise. Rhian said the district won’t know the exact tax levy until certified property valuations are received on Aug. 20.
“We know this will be a burden on our property owners within the district, but we have to ask them to help continue and increase their support for our district, and recognize that a levy that’s consistent with what we’ve generally had over the last 30 years is an appropriate way to continue with a modest increase in the budget,” Rhian said.
Other parts of the $10 million proposed budget increase will go to transportation for increased fuel and maintenance costs, special education services and utilities. Rhian said the district is also looking to fund bus passes for students to use the city system if they prefer after private funding was no longer available for the program.
District leaders will have two more presentations about the proposed budget on July 23 and July 25.