(KLZA)-- Falls City Public School Superintendent Dr. Andrew Offner has presented information to the Board of Education and is explaining to District 56 patrons that the school district is going to be working through some financial challenges that have come about over several years.
Dr. Offner explained during an appearance on the Community Focus program how some of the difficulties have come about including changes by the Nebraska Legislature about three years ago changing the landscape of school financing. At that time District 56 was collecting about $8.7 million in local taxes compared to the current amount of about $5 million.
He also touched on local factors that have contributed to the financial situation, including an increase in the number of special needs students which have increased by more than 40 in recent years. Staff costs take up about 86% of the school budget with insurance rates also on the rise.
In recent years the Falls City School District has been able to reduce property tax levies but due to inflation and some funding mechanisms coming to an end, there is now a need to increase the levy.
The school board has done a good job of keeping costs down but inflation and the sun setting on some funding mechanisms it put the district in the position of not collecting enough in property taxes.
Part of the process to recover from the financial challenges will be taking out tax anticipation notes. Over the past three years expenditures started to outpace tax income causing the district to use reserves to make up the difference.
The Superintendent said it will take several budget cycles to balance property tax collections with expenses. He expects that by January, 2028, the district should be back to the point the tax collections will cover all obligations. After an expected rollover after two years, it will likely be 2030 to pay back the TAN and rebuild reserves.
In order to help with the recovery, District 56 will plan to utilize the maximum annual allowable property tax increase of 6%.
Dr. Offner said the correction to the financial difficulties will not require cuts in program or staff, however, any increases in certified staffing will be deferred until the 2028-29 school year. In addition, major purchases and vehicle replacements will be deferred unless necessary for safety or operations.
The recovery will include repaying approximately $700,000 to the Special building Fund.
The Superintendent says obligations must be met and that the issues are not insurmountable. He understands that no one wants to pay more taxes but the school district must meet it's obligations to students.
Dr. Offner thanked the District 56 patrons for their continued support of the Falls City Public Schools.
