How Much Money Does LPS Need?

The following letter was submitted to the LIBA membership by the Chair of LIBA’s School Liaison Committee and I wanted to share it here.  Enjoy!

Last week, the Lincoln Journal Star Editorial Board wrote that the decision by the Lincoln Public Schools Board of Education last fall to place $10 million of unneeded tax money into a savings account demonstrated “prudence” as the district looks poised to avoid funding shortfalls heading into the budget session this summer. The Editorial Board praised setting aside this $10 million for its ability to address a “somewhat less than $2.6 million decrease” in state aid funding expected this year, and criticized groups like the Lincoln Independent Business Association (LIBA) for suggesting that taking $10 million was too much. Simple math suggests that the Editorial Board’s criticism may be too strong, considering that placing $10 million in savings is nearly four times the amount needed to meet a projected $2.6 million shortfall. But the point that it is important for the district to have sufficient reserves to cover potential shortfalls is well-taken.

LIBA is glad to see that the district is in solid financial condition. As we consider future budgets, though, LIBA will continue to call on members of the School Board to look for ways to provide tax relief when possible and warranted. And with the passage of a couple of education spending bills in the Nebraska legislature this year, we are happy to say that the School Board might have more opportunities to offer property taxpayers some relief.

One of LIBA’s priority bills this year was LB 959, which changed provisions of the formula that determines how much state aid schools receive. In the past, LPS has been hesitant to reduce its tax levy because doing so may result in lost state aid under the formula. LB 959 will make it so that LPS could lower its tax levy without affecting the amount of state aid it receives. This should have the beneficial result of freeing Board members from the fear of losing state aid if they provide property tax relief in the future.

Another of LIBA’s priority bills was LB 930, which replaced NeSA’s state-specific tests for high school juniors with a college entrance exam such as the ACT or SAT. This bill will have the benefits of reducing the number of tests students must miss class time to take and opening up new opportunities to pursue higher education.  In addition to eliminating four tests, this bill also provides teachers, administrators, parents, and the public with understandable metrics by which to measure the success of our schools.

With these important policy changes being implemented at the state level, LIBA believes its efforts at the Capitol will result in major benefits to the LPS Board and to Lincoln taxpayers moving forward. Make no mistake, LIBA is glad to see LPS avoid the financial situations faced by other school districts in our state. But to suggest that maximizing taxes year after year is the only way to avoid such situations is disingenuous and irresponsible in light of the fiduciary duty School Board members have as stewards of public tax dollars. As taxpayers and parents, LIBA members are committed to continuing to work with LPS and state officials to find ways to ensure the success of our students while also promoting the responsible use of our hard-earned tax dollars.

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 (402) 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.

For more information on LIBA, visit Liba.org.