Spending increases 4.96% under the new budget. The district’s total tax rate falls to about $1.01 per $100 of assessed value, but higher property valuations could still affect individual tax bills.
By Hola Nebraska
LINCOLN, Nebraska — The Lincoln Public Schools Board of Education approved a $586,449,705 budget for the 2026-27 fiscal year on Sept. 22, a 4.96% increase from the previous year.
The district also set a total tax rate of $1.010264 per $100 of assessed value, down from about $1.02 the previous year.
A lower tax rate does not automatically mean every homeowner will pay less. Certified property valuations for LPS’ major funds increased by about 5.6%, so the effect on an individual property will depend on how its assessed value changed and which state property tax credits apply.
LPS spending increases by $27.7 million from last year
Total spending rises from $558,739,610 in 2025-26 to $586,449,705 in 2026-27, an increase of about $27.7 million.
About $18.5 million, roughly two-thirds of the increase identified during the budget process, is tied to previously negotiated salary and benefit increases.
Salaries and benefits account for approximately 88.64% of the budget. LPS employs about 6,500 people.
New spending includes $1.5 million for counselors and behavior framework coaches to maintain services previously supported by federal grants, along with about $1.1 million for additional staffing across several schools, including Standing Bear High School.
Another $1.75 million will support special education teachers and services as federal IDEA funding declines.
The budget also includes an additional $199,725 for Early Childhood and security improvements at 31 school buildings to create vestibules where visitors can be screened before entering offices and other parts of the schools.
The school tax rate falls as property valuations rise about 5.6%
LPS approved a total tax rate of $1.010264 per $100 of assessed value. With the new valuations, a rate of approximately $0.967474 would have generated the same amount of property tax revenue as the previous year.
The approved rate is higher than that level. The district’s property tax request also exceeds the previous year’s request and the growth allowed automatically under state law, which required LPS to participate in the joint property tax request hearing held Sept. 17.
The resolution approved by the Lincoln Public Schools Board of Education sets the tax rate and property tax requests for the district’s different funds.
An average-valued home could pay more even with a lower tax rate
In an example used by LPS during the budget process, the value of an average home rises from $319,213 in 2025 to $337,089 in 2026.
The LPS portion of the property tax bill increases from approximately $3,256 to $3,405 before the state tax credit.
After the estimated state credit, the district’s example rises from about $2,279 to $2,384.
The example is based on a property with the average valuation used by the district. A home whose assessed value changed by a different amount could see a different result.
Property owners can also review our guide to the Nebraska property tax credit in 2026, which explains how state relief applies to school property taxes.
LPS adds funding for special education and student support
Part of the new spending is intended to maintain services that previously relied on federal funding.
Approximately $1.5 million for counselors and behavior framework coaches will continue student support services that had been funded through federal grants.
Another $1.75 million will support special education staff and services and replace declining IDEA funding.
LPS also added about $1.1 million for staffing based on enrollment needs, including full staffing for Standing Bear High School during its fourth year of operation.
Other spending includes approximately $750,000 for an administrative management platform, an additional $83,440 for a unified communications system and higher costs related to insurance and state background-check requirements.
The property tax request will fund operations, buildings and school debt
The district’s property tax request includes funding for the General Fund, Special Building Fund, bond funds and capital projects.
- General Fund: $373,719,276.
- Special Building Fund: $4,187,160.
- 2006 Bond Fund: $12,607,791.
- 2014 Bond Fund: $7,549,833.
- 2020 Bond Fund: $15,714,853.
- Qualified Capital Purpose Undertaking Fund, previous projects: $5,480,626.
- Qualified Capital Purpose Undertaking Fund, future projects: $2,093,580.
The funding will cover school operations, bond debt and projects involving buildings, security, accessibility, air quality and other facility needs.
The budget covers the school fiscal year that began Sept. 1, 2026 and ends Aug. 31, 2027. Lincoln Public Schools provides budget and financial information through its official Budget and Finance portal.
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