Lincoln Public Schools (LPS) will receive an increase in State Aid of approximately $13.8 million dollars over last year. In addition, property valuations in Lincoln should result in an increase of $4.8 million in property tax receipts over last year. That is over $18 Million in NEW money, which includes a heretofore unanticipated $1.2 million.
Given these facts, LIBA asked LPS to lower its taxes. LIBA felt compelled to address three issues.
Strategic Planning: The 2014 LPS budget allocates $250,000 for Strategic Planning. This is in addition to the $250,000 budgeted last year for the same purpose. We question the need to apportion an additional $250,000 toward reestablishing priorities previously identified through an extensive strategic planning process.
Community Learning Centers: LIBA believes LPS should not allocate $500,000 toward Community Learning Centers (CLC). Lea Ann Johnson, Director of the Community Learning Centers, met with the LIBA School Liaison Committee and indicated that they have enough cash reserve to cover all CLC costs for the 2013/2014 school year. Thus, the CLCs do not need funds this year. While CLC’s greatly benefit participating students a decrease in property taxes and the corresponding decrease in the cost of housing could have a greater positive impact on students and their families.
Unanticipated Increase in Property Tax Revenues: With the receipt of an unanticipated $1.2 million in property tax revenues both General Fund revenues and Educational Service Unit (ESU) revenues will increase. The ESU already has a projected beginning balance of $1.77 million and a projected ending balance of $1.81 million; therefore a reduction in the levy for both the General Fund and the ESU should be considered.
LIBA once again asked the Board to exercise caution. Personnel costs are LPS’ largest expense and one that increases most years. Recently the Education Committee of the Nebraska Legislature met to reexamine the school aid system and indicated a potential overhaul. The Chairperson of the committee, Senator Sullivan, went so far as to state that the committee was, to the extent possible, looking at a “clean slate.” With these changes on the horizon LIBA urged LPS to exercise caution regarding state aid; ensuring that current expenditures remain sustainable in the coming years. We believe the top funding priority must focus on educating children in the classroom.
During a year where LPS is getting more money than they could have dreamed of, LIBA asked LPS to provide property tax relief not just for homeowners but for commercial property owners who create jobs and are a vital force in Lincoln’s economy. The LPS Board voted to keep the taxes at their current level.
by Coby Mach, President & CEO
Lincoln Independent Business Association
402-466-3419
LIBA studies and promotes these types of issues that are important to businesses and our community. If you have an interest in joining LIBA, please call me at 466-3419. LIBA membership is not restricted to just businesses. We also have “individual” memberships for those who want to help influence our local government decisions.