Omaha Public Schools received $30.5 million too much in state aid. Officials say the reduction next year could be a challenge

In a message to families on Monday, Omaha Public Schools said it received an overpayment of $30.5 million in state aid for the current school year.

The Nebraska Department of Education told the district there was a mistake in the amount calculated for state aid, so the $30.5 amount would be subtracted from its allocation for 2026-27. The district estimated the total impact to next school year’s budget would be $61 million because of a lower amount in state aid along with the subtraction.

OPS reduced its levy for taxpayers by about 11 cents this school year and said it will likely need to raise it next school year to make up for the error.

“As fellow taxpayers, we can imagine the disappointment and frustration,” the statement said. “We feel it, too.”

NDE Commissioner Brian Maher said in a statement his department has worked to correct the calculation issue for the 2026-27 school year and future years.

"This error also means that many other districts that rely on equalization aid from the state received less than they should have," Maher said.

NDE doesn't have a list of the districts that were specifically impacted, but noted that most of the equalized districts will have some sort of increase due to the error. Maher went on to say that the funds would be reallocated to the appropriate districts for the next school year.

The Omaha district received nearly $340 million in total state aid this school year. For the 2024-25 school year, the district received nearly $316 million in state aid.

Officials said the error was within the “poverty allowance” for schools and districts participating in the Community Eligibility Provision of the National School Lunch Program. OPS used to qualify district-wide, but that changed this school year. About 70 buildings qualified, while 21 did not.

This announcement comes as the School Financing Review Commission works to improve the formula that calculates state aid — the Tax Equity and Educational Opportunities Support Act, or TEEOSA.

On Thursday, Gov. Jim Pillen reiterated his calls to eliminate TEEOSA funding, saying “This error is another example of how the TEEOSA formula continues to fail Nebraskans. Time and time again, I have said that we must do away with this complex formula that nobody understands and have the state fund schools while providing property tax relief. Unfortunately, this call has fallen on deaf ears with a small group of members of the Legislature, who continue to block any attempt at tax reform.”

By way of full disclosure, Brian Maher is a commissioner on Nebraska Public Media's governing board, the Nebraska Educational Telecommunications Commission.