Budgeting in todays Public

Schools in the State of

Nebraska
But First: A little about myself
• 1987 graduate of WSC, BAE in Industrial Technology, Field Endorsement in
Trades and Industries in Auto Mechanics
• 2002 MAE at WSC, Curriculum and Instruction in Industrial Technology
• 32 years of high school teaching experience- single and multi person
departments
• Guide Rock NE
• Harvard NE
• O’Neill NE
• Pierce NE
• Negotiations Team Member for over 25 years- I worked with the numbers $$$
Budgeting Changes
• Biggest change in budgeting occurred in the 1995-96 school year in
Nebraska
• Nebraska primarily funds the public schools based on property taxes
in the school district.
• In 95-96, the state senators were concerned about schools
overspending and over inflating their budgets. Concerns were also
based on the total dollar amount the rural communities would pay in
order to fund education.
• Thus, a spending freeze in terms of how much a budget could grow
was enacted. Levies in Nebraska were capped.
• Because of the cap, many school districts started eliminating positions
through either the RIF (reduction in force) policy or not rehiring
positions that were being vacated.
• This cap started the future decline in property tax levies (mill levies)
to where it is today.
• Today, our levy state wide is a maximum of $1.05 per $1000 of value
• Farmland is taxed at 75-80% of its value, homes 95-100%
• Nebraska ranks in the top 10 of States tax levies
Building a budget for CTE in the public
school
• Budgeting for CTE varies among school districts. The biggest
difference are in magnet schools which attract specific students.
• Most districts treat CTE no different from Core classes in terms of
budgeting
• Everyone needs supplies, everyone needs textbooks.
• School districts form a general “kitty” or a big “pie” of money to be
divided out between the programs.
• The pies include : supplies, equipment, misc., and
computers/software.
• A prime example of why it is placed in a pie is textbooks.
• Not every area needs text books yearly. According to Nebraska
accreditation rules, if a textbook is over 9 years old, it should be replaced
with newer models. If a district chooses not to replace the textbooks, it will
receive a deficiency rating in its 7 year evaluation plan.
• Each year, roughly before April 1st, each department will submit a detailed
list of supplies needed, equipment needed, and miscellaneous supplies
needed. The list is detailed with the vendor cited, catalog page and total
amount plus justification if applicable.
• Superintendent, following the boards lead on spending, makes the decision
on funding.
General Budgeting
• The state of Nebraska legislature sets the allowable growth of our
budget every year. Currently, it is 2.5% but there are some areas
which are allowed more growth. Those areas are based on things the
school district cannot control.
• Special Education Costs- teachers, aids, transportation- anything you
have to provide is an example.
• Current levy limit in NE is $1.05. That is the maximum a school
district can levy but there is a catch to that. If you current levy is .80,
you can only increase it 2.5% which relates to .82.
Unused budget authority
• This is any part of the 2.5% of the growth allowed you did not use. If
your allowable growth is .82 and you levied for .81, the amount of
money you did not tax goes into your unused budget authority.
• If in the following year you need funding that exceeds the 2.5%, you
can use the unused budget authority to raise the revenue.
• How much money that is in this area varies between school districts
and school board goals.
Cash Reserve
• This is any money that is left over at the end of a fiscal year, Sept. 1-
Aug 31. You may not have more that 35% of your budget in cash
reserve. Levies are based on how much the school board wants in
reserve and how much they want money they want to levy.
• Cash reserve is there for sudden happenings or projects projected in
years to come- leaky roofs, paving parking lots, computers, etc.
• Some districts have good reserve, others do not. Depends on your
school boards goals.
• Takes time to build it up.
Overriding the levy
• Communities can override their current levy of $1.05 the voters agree
to it. Called an override. Example is Winside. Levy was around $1.30
a few years ago.
• Only disadvantage of overriding is high property taxes, higher that
already have.
State Aid in Nebraska
• Money the state of Nebraska allocates to a school district. This
amount is calculated by: Needs (how much $ is needed) – Resources
(tax money coming in) = State aid. If a district needs more money
than they can generate, state aid will fill that up to a point.
• Needs are based on student count primarily. Currently, the State
allows roughly $10k per student. If you are not $1.05, you can
generate the money so you will not receive state aid.
• Most school receive no state aid. Only a limited amount every year
from the state.
Option Enrollment Money
• In Nebraska, we have option enrollment.
• State gives each school district $10K per year. Reason for this if the
parent lives outside the school district and pays taxes in another
district, a part of their tax money follows them.
• School districts are selective on bringing in students- if classrooms
overcrowd, education costs, special education costs, etc.
Allocated Income Taxes
• Each district receives a % of state income taxes paid within the school
district. Usually doesn’t amount to much.
Additional Ways to Fund CTE Only
• REAP Grant: Rural Education Achievement Program.
• This grant provides for new things to your district. In Pierce, a
greenhouse was built, purchased a plasma table. Has to be a new
piece of technology, not a new model to what you currently have.
• Have to apply for it only once, then it rolls over.
• Depends on how much money is available from the Nebraska budget,
we received up to $40K one year. Each school must identify what it
wants to do and present it State Department of Education.
Nucor Grant Program
• This program helps schools that neighbors a Nucor site. Want to help
prepare students for a career with Nucor or in that industry.
• Have to make an application whenever money is available and Nucor
decides who receives it.
Perkins Act
• In Nebraska, all small schools are required to pool their money
together if they are under a specified attendance number.
• In Northeast Nebraska, Norfolk High school is on its own. All other
schools pool their money through the ESU and the ESU takes
applications and distributes money.
• Each state specifies what can be purchased. In Nebraska, software
cannot be purchased but equipment can. Pays for registration
fees/lodging/food/travel to go to conferences.